PMC's 2026-27 Draft Budget Prioritizes Development in Newly Merged Areas with Rs954 Crore Allocation
The Pune Municipal Corporation (PMC) has unveiled its draft budget for the fiscal year 2026-27, earmarking approximately Rs954 crore specifically for the development of newly merged areas. This budget marks a significant milestone as it is the first municipal budget since newly elected corporators from these regions assumed office, following persistent demands from both citizens and representatives to accelerate infrastructure improvements.
Budget Relies on Projected Revenue from Building Permissions and Property Taxes
Drafted by PMC Commissioner Naval Kishore Ram, the budget heavily depends on anticipated revenue from building permissions and property taxes in the suburban fringes. "We expect a substantial rise in revenue from building permissions as development accelerates in these areas," Ram stated. "The PMC is also counting on funds and cleared dues from the state government to support these enhancements."
Historical Context and Planning Authority Shift
In his budget speech, Commissioner Ram detailed the historical integration of villages into PMC limits. Eleven villages were merged in 2017, with two later excluded, followed by an additional 23 villages in 2021. A pivotal change occurred on February 11, 2026, when a state notification stripped the Pune Metropolitan Region Development Authority (PMRDA) of its status as the special planning authority for these 23 villages. Consequently, the PMC now serves as the sole planning authority for these jurisdictions.
"Integrated development must be prioritized to address the current deficit in basic infrastructure," Ram emphasized. "This budget aims for inclusive growth, balancing rapid urbanization with our available resources and financial constraints." He noted that Pune's landscape has undergone a massive transformation, driven by the expansion of IT global capability centers (GCCs), underscoring the need to develop merged areas for uniform growth across the entire municipal limits.
Detailed Allocation for Infrastructure Projects
The budget has allocated funds across various critical infrastructure sectors for the newly merged areas:
- Roads and Allied Infrastructure: Rs103 crore has been allocated, including plans to build footpaths of international standards in 32 areas.
- Sewage Systems: Rs151 crore is earmarked for sewage, with Rs75 crore for building sewage line networks in 11 areas and Rs76 crore in 16 areas.
- Water Supply: Rs350 crore is set aside for water supply infrastructure, with Nandkishor Jagtap, head of the PMC water supply department, confirming plans for a 24x7 water supply project and pipeline upgrades.
- Non-Project Works and Revenue Expenditure: An additional Rs350 crore is allocated for non-project-related works and revenue expenditure.
Focus on Planned Real Estate Development and Revenue Boost
Aniruddha Pawaskar, city engineer at PMC, highlighted the administration's steps toward planned real estate development in these areas. "With increased construction and redevelopment likely in the fringes, demand for building permits will rise," he explained. "This will boost PMC's revenue from development charges and building permissions, supporting further investments."
Corporator Calls for Priority on Basic Infrastructure
Sopan (Kaka) Chavan, a corporator from the Sinhagad Road–Khadakwasla area, voiced support for the budget's focus. "The newly merged areas have long been deprived of basic infrastructure," he said. "The administration should give first priority to these areas to ensure equitable development and improve residents' quality of life."
This comprehensive budget reflects PMC's commitment to addressing infrastructure gaps and fostering sustainable growth across Pune, leveraging projected revenues and state support to transform the newly merged regions into well-developed urban spaces.
