Nagpur Municipal Corporation Presents Rs5,857 Crore Budget for 2026-27
In a significant move marking the return of elected governance after nearly four years under administrator rule, Nagpur Municipal Commissioner Vipin Itankar presented a proposed budget of Rs5,857 crore for the financial year 2026-27 to Standing Committee Chairperson Shivani Dani Wakhare on Friday. This budgetary exercise aims to accelerate development and position the NMC among the top three municipal corporations in Maharashtra.
Budgetary Overview and Financial Projections
The proposed budget projects an estimated income of Rs5,541.31 crore against an expenditure of Rs5,840.65 crore, resulting in a deficit of Rs299.34 crore. To finance key infrastructure projects, the civic administration has proposed raising Rs200 crore through municipal or green bonds and Rs400 crore via bank loans, while maintaining a fixed deposit of Rs100 crore as part of financial reserves.
For the 2025-26 financial year, the civic body initially projected net revenue of Rs4,702.75 crore with an opening balance of Rs698.87 crore. Revised estimates now place total revenue at Rs5,401.62 crore, with expenditure estimated at Rs5,085.63 crore. This includes Rs3,789.23 crore under Section A for establishment and administrative expenses and Rs1,296.40 crore under Section B for development works.
Expenditure Allocation and Development Priorities
For 2026-27, the administration has allocated Rs4,358.56 crore under Section A and Rs1,482.09 crore under Section B, totaling Rs5,840.65 crore in projected expenditure. Of this, Rs2,512.26 crore is earmarked for revenue expenditure, while Rs3,155.91 crore is designated for capital expenditure, primarily targeting development and infrastructure projects across Nagpur.
Commissioner Itankar emphasized that the development plan prioritizes essential civic amenities, including:
- Roads and street lighting
- Water supply and sanitation
- Healthcare and education facilities
- Solid waste management
Revenue Sources and Recovery Efforts
The proposed revenue structure shows Rs3,889.48 crore from the corporation's own sources, with Rs1,651.83 crore expected as grants and assistance from state and central governments. Key internal revenue streams include:
- Property tax department target: Rs375 crore
- GST compensation from state government: Rs1,913.68 crore (assuming 8% annual growth)
- Town planning activities: Rs450 crore
- Water charges: Rs275 crore
- Stamp duty: Rs70 crore
- Sky-signs (advertisement) department: Rs13.37 crore
The market department is projected to generate revenue through shop and space usage charges (Rs13.47 crore), auction of commercial spaces (Rs16.51 crore), parking fees (around Rs44 lakh), and lease renewals (Rs13.30 crore). Officials noted challenges, with property tax arrears exceeding Rs900 crore and pending water charges over Rs300 crore, prompting a focus on improving revenue recovery.
Taxation and Approval Process
While the proposed budget does not include an immediate tax hike, the administration indicated that revisions to property tax and advertisement charges could be considered later, subject to approval by the standing committee and NMC general body. Standing Committee Chairperson Shivani Dani stated that any decision on property tax revision will be taken after discussions with corporators, exploring ways to increase civic revenue, such as securing shares from entertainment and professional taxes collected by the state.
Commissioner Itankar highlighted the budget's people-centric, transparent, and growth-oriented approach, prioritizing essential services. He acknowledged that reducing expenditure is difficult, as 35% to 40% of spending goes toward salaries, pensions, and statutory obligations. The proposed budget will now undergo examination by the standing committee before final approval by the NMC general body.
