Pune: PMC Presents Rs 13,995 Crore Budget for 2026–27, Prioritises Infrastructure and Waste Management
Pune, 9th March 2026: Naval Kishore Ram, Commissioner of the Pune Municipal Corporation (PMC), on Monday presented a Rs 13,995 crore civic budget for the financial year 2026–27 before the Standing Committee, marking an increase of Rs 1,377 crore compared to the previous year.
The expanded budget outlines the municipal administration’s focus on strengthening infrastructure, improving waste management systems and accelerating development works across the city, including recently merged villages.
Key Revenue Projections
According to the budget estimates, PMC expects significant revenue from property tax collections, construction-related charges and GST compensation. The civic administration has projected the following major sources of income:
Rs 3,152.40 crore from property tax
Rs 3,406.86 crore from building permissions and development charges
Rs 2,917.95 crore from GST compensation
Rs 845.32 crore from Local Body Tax collections
Additional income sources include Rs 741 crore from water charges, ₹934.34 crore through government grants and Rs 1,203.69 crore from other sources. The civic body also plans to raise Rs 500 crore through municipal bonds.
Apart from this, Rs 93 crore has been earmarked for housing projects under the Pradhan Mantri Awas Yojana.
Major Expenditure Heads
On the expenditure side, the largest allocation has been made for employee-related costs, including salaries and benefits, amounting to Rs 3,881.70 crore.
Other key expenditure items include:
Rs 570.41 crore for electricity bills and repair works
Rs 190 crore for water-related operational expenses
Rs 319.69 crore for medicines and fuel such as petrol and diesel
Rs 2,722.19 crore for maintenance, repairs and other administrative costs
Additionally, Rs 148.01 crore has been allocated towards loan repayments, interest payments and depreciation.
Significant Funds for Development Projects
A major share of the budget — Rs 5,773.54 crore — has been set aside for capital and development works across the city.
The budget also allocates Rs 217.50 crore for projects under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and the Smart Cities Mission.
Other allocations include Rs 34 crore for ward-level works and Rs 137.94 crore for projects to be implemented through regional offices.
Infrastructure Push in Newly Merged Villages
The civic administration has acknowledged that basic infrastructure in the 32 villages recently merged into PMC limits remains inadequate. The budget therefore, includes provisions to upgrade roads, water supply systems and drainage infrastructure in these newly incorporated areas of Pune.
Waste Management Projects Planned
To strengthen solid waste processing capacity, PMC has proposed establishing a reject waste processing facility capable of handling two lakh tonnes of waste on a 5–6 acre site.
In addition, another reject waste processing project with a capacity of 300 metric tonnes per day has been proposed in the Hadapsar area.
Department-Wise Allocations
The budget proposes substantial allocations for key civic departments:
Water Supply Department: Rs 2,017.43 crore
Sewerage Projects: Rs 1,216.48 crore
Solid Waste Management: Rs 1,390.39 crore
Health Department: Rs 881.74 crore
Traffic Planning and Projects: Rs 740.40 crore
Other allocations include Rs 205.76 crore for the Garden Department, Rs 51.59 crore for the Environment Department, Rs 265.72 crore for the Electrical Department, Rs 650.44 crore for the Building Department and Rs 56.73 crore for the Information Technology Department.
Separate provisions have also been made for primary education, social welfare initiatives, cultural centres, the motor vehicle department and disaster management services.
With the civic budget now nearing the Rs 14,000 crore mark, attention will turn to how effectively the municipal administration can meet its revenue targets and implement the proposed development projects across the rapidly growing city.
