Modern Vision, Graded Debts; The 2026-27 Budget
Municipal Commissioner Saurabh Rao presented the 2026-2027 budget breakdown to the Administrator/Mayor Sharmila Pimpalkar on Monday. The administration faces a tight budget to fund development projects due to failure in tax collection and a liability of 2,000 crore rupees.
Revenue vs Expenditure Breakdown
The state government’s largest revenue source is the GST grant, around 40%. Followed by Property Tax and Fees (28%), Town Planning fees (16%), Water Supply Collection (6%), and fire and miscellaneous departments (10%).
Service-wise Expenditure includes Other services (29%), Infrastructure in Ward (26%), Solid Waste, Water and Environment (15%), Education (7%), Health services (7%), Water Supply (7%), and Transport and Public Safety (9% combined).
The total allotted budget for 2026-2027 is 6,221.27 crore rupees. This includes Capital Expenditure (Development and Projects) at 2,401.55 crore; Revenue Expenditure (Salaries and Admin) at 3,818.17 crore; Transport Budget at 791.86 crore.
The commissioner included initiatives to improve the quality of life in Thane. To provide relief to citizens, no new taxes or increase in existing taxes was proposed.
Education: 364.27 crore rupees will be allocated for science centers, model schools, and “Balrangbhoomi,” and a CBSE school will be established at Kharigaon using CSR funds.
Medical: Bed capacity at Chhatrapati Shivaji Maharaj Hospital (Kalwa) will increase from 500 to 800, digitalisation of birth/death certificates, and “Chithimukt” (paperless) medicine distribution.
Infrastructure: Rapid development of the Thane Coastal Road, Thane-Borivali Twin Tunnel, Mumbai- Ahmedabad High-Speed Corridor, and several flyovers/bridges to ease traffic.
Environment and Energy: Solar systems will be installed at the Pise Water Pumping Station to reduce electricity bills. Treated sewage water will be sold to a private entity for ₹48 per thousand liters.
E-vehicle: Charging centers will be set up across the city.
The report notes that the corporation failed to meet its revenue targets last year. Revenue collection fell from an expected ₹3,523 crore to ₹3,461 crore. The current liability stands at ₹2,100 crore. The Commissioner clarified that the “immediate” debt to be paid is between ₹1,000 and ₹1,100 crore. To bridge the gap, the TMC is looking at new revenue streams like advertising fees and “Green Bonds.”