Mumbai Climate Budget 2026-27: BMC Allocates Over ₹25,000 Crore For Flood Management, Greening And Sustainability Projects

Mumbai, June 18: The BMC released its Climate Budget for the fiscal year 2026-27 on Thursday, allocating an estimated Rs 20,730 crore in capital expenditure and Rs 4,632 crore in revenue expenditure for climate-aligned activities to be implemented under the Mumbai Climate Action Plan (MCAP).

For FY 2026-27, Rs 18,080.01 crore of CAPEX budgetary allocation has been made for Urban Flooding and Water Resource Management, Rs 1,369.36 crore for Urban Greening and Biodiversity, Rs 968.15 crore for Sustainable Waste Management, Rs 156.67 crore for Energy and Buildings, Rs 90.85 crore for Air Quality Management, and Rs 65 crore for Integrated Mobility.

This year's budget marks a notable increase from FY 2025-26, when climate-aligned expenditure was Rs 16,321.33 crore. The BMC also said that for the Climate Budget FY 2025-26, it has achieved 77.91 per cent financial progress.

This is the BMC's third Climate Budget and was released by Mayor Ritu Tawde. The last two Climate Budgets, prepared by the civic Department of Environment and Climate Change, were released on Environment Day by the BMC Commissioner when the corporation was under administrative rule.

Major allocations for flood management

Similar to the last two years, the BMC has made significant budgetary allocations for the Flooding and Water Resource Management sector, followed by Urban Greening and Biodiversity, Sustainable Waste Management and Air Quality Management.

For FY 2026-27, the climate budget for the BEST Undertaking is estimated at Rs 4,622.14 crore under operational expenditure and Rs 3,941.06 crore in subsidies under the deficit head.

However, the BEST Undertaking budget considered for climate budgeting is provisional and currently under revision based on the Standing Committee’s feedback, the budget document states.

Mumbai's Climate Budget is categorised into Direct Actions – Quantified (which encompasses planned measures and activities directly leading to greenhouse gas emission reduction), Direct Actions – Non-Quantified, and Enabling Actions.

New initiatives under climate plan

Under Direct Actions – Quantified, some of the new initiatives and projects to be undertaken in FY 2026-27 include:

● Setting up a new dry waste management processing centre

● Setting up a new waste segregation centre

● Provision of new streetlights with LED luminaires at Middle Vaitarna Dam

● Replacement of conventional lighting with LED lighting at municipal schools

● Procurement of renewable energy for the electricity supply mix

● Wet leasing of electric buses

Activists question implementation

Although the BMC has released an ambitious budget, promising to execute existing projects and new initiatives under the MCAP, environmental activists have questioned its implementation on the ground.

"It is good to hear that the BMC’s budget for climate change is increasing, but unfortunately there are multiple issues that remain unaddressed. Why was the unspent amount not used for procurement of more buses for BEST? How much money is BMC spending on environmentally destructive projects such as the coastal roads, underground tunnels through SGNP, Gargai dam, etc.? Why has the BMC not been able to curb air pollution or the problem of C&D waste? Or even restoration of mangroves, or cleaning up our dumping grounds? Or desilting Powai Lake?" said Debi Goenka of Conservation Action Trust.

"It just seems that the BMC is great at spending our money on projects that harm us rather than help us fight climate change. The very least they can do is stop giving permissions for tree cutting and the destruction of our mangroves," he added.

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BN Kumar, Director of NatConnect Foundation, said, "The climate budget is a welcome and progressive step; however, the real test now lies in timely execution, measurable outcomes and active citizen participation."

He added that climate resilience must begin with water security. "Mumbai cannot afford to overlook large-scale rainwater harvesting, scientific desilting of drinking water source reservoirs and protection of natural wetlands, rivers and mangroves that act as the city's sponge infrastructure. Every drop stored locally reduces pressure on distant dams."

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