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MC Mohali proposes 20% hike in FY 2026-27 budget, meet on March 24
The Mohali civic body is not announcing any new taxes or fresh development projects in its proposed annual budget for the fiscal year 2026-27
The Mohali Municipal Corporation (MC) has proposed a 20% increase in its annual budget for the fiscal year 2026-27, taking the proposed annual budget to ₹226.89 crore.
The budget meeting is scheduled to be held on Tuesday (March 24), with the civic body not announcing any new taxes or fresh development projects.
Last year, the Punjab government had approved a reduced budget of ₹188 crore for MC Mohali, despite the corporation having cleared a ₹211-crore proposal for 2025-26.
The substantial cuts were made by the local bodies department under multiple key expenditure heads, resulting in a trimmed allocation. The approved budget had projected a surplus, with the MC estimating its expenditure at ₹158.69 crore for the current fiscal.
For the upcoming financial year, the MC has projected a significant rise in income, estimating receipts of ₹226 crore. The civic body expects higher contributions from the Punjab Municipal Fund ( ₹100 crore), property tax ( ₹70 crore), advertisement fees ( ₹29 crore), water tax ( ₹7 crore) and rent lease payments ( ₹3 crore).
Of the total proposed expenditure of ₹226 crore, the MC plans to spend ₹72 crore on the establishment branch—including staff salaries— ₹7 crore on contingency expenses, ₹83 crore on committed expenditure such as solid waste management, water supply and sewerage services, and ₹64 crore on development works across the city.
A major hike is visible in the development budget, especially in the election year.
The total estimated expenditure on city development for 2025-26 stands at ₹4.5 crore, while the proposed outlay for 2026-27 has escalated sharply to ₹6.4 crore.
The MC intends to allocate ₹8 crore for road works—one of the highest heads—aimed at strengthening city infrastructure. Additionally, ₹1 crore has been proposed for new tubewell construction, ₹2 crore for slum road and park improvements, and a substantial ₹10 crore for CC flooring, footpath construction and repair, signalling a focused push toward improving internal roads and pedestrian pathways.
Besides budget, various developmental related agendas will also be taken up in the House meeting on March 24.
The MC House will revisit the proposal to mechanically sweep internal C roads in the city, after officials flagged poor road conditions and urged fresh consideration of the earlier rejected resolution. An estimate of ₹3.91 crore for three years has been prepared to clean 50.57 km of these roads daily on a weekly cycle. The MC will also table an agenda for the cleaning and de-silting of Patiala Ki Rao at an estimated cost ₹4.18 crore.
