BMC Budget 2025-26: Mumbai Civic Body Cuts Health Budget Share, Pushes For PPP Model In Hospitals
Amidst this budgetary shift, BMC has announced a significant move to hand over several of its hospitals and healthcare centers to private entities under a Public-Private Partnership (PPP) model.

BMC has announced a significant move to hand over several of its hospitals and healthcare centers under PPP model | Vijay Gohil FPJ
The BMC has earmarked Rs7,380.43 crore for healthcare in its Rs74,427 crore budget for FY2025-26, reducing the share of the health sector to 9.92% of the total budget. This marks a decline from previous years, where health allocations stood at 12% in 2024-25 (Rs7,191.13 crore of Rs59,954.75 crore) and 15% in 2022-23 (Rs6,934 crore of Rs45,949 crore).
Amidst this budgetary shift, BMC has announced a significant move to hand over several of its hospitals and healthcare centers to private entities under a Public-Private Partnership (PPP) model.
PPP Model Raises Key Questions
The civic body has proposed outsourcing the management of multiple health facilities for a 30-year period. This includes 490-bedded Bhagwati Hospital, 300-bedded hospital transferred from MMRDA, Punjabi Galli Diagnostic Center, Jakhadevi Multi-Specialty Clinic, Vikhroli Parksite Hospital.
When pressed for clarity, Additional Municipal Commissioner (AMC) for Health Bipin Sharma and Deputy Municipal Commissioner (DMC) Sanjay Kurhade shifted responsibility to each other. While Sharma redirected queries to Kurhade, the latter claimed he was unaware of the details.
Milind Mhaske of Praja Foundation stressed the need for clear policies ensuring that private operators do not compromise affordability. “Whether a hospital is run by BMC or a private player, free or low-cost healthcare must remain a priority. The bed-sharing ratio for private operators should also be reduced to prevent exploitation,” he suggested.
Other healthcare initiatives
* Expansion of non-communicable disease screening
* Ward-Wise Cancer Care Clinics
* ‘Maa Mitra’ Helpdesks for Pregnant Women
* 33 adolescent health centers across Mumbai
* Three new hospitals and 25 ‘Aapla Dawakhana’ Clinics
March-May deadline for completing construction of:
Bhagwati Hospital (Borivali)
Shatabdi Hospital (Govandi)
MT Agarwal Hospital
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