Five Key Observations from Mega City Municipal Budgets (2025-26)

1. Kolkata Municipal Corporation Lags Behind

Among cities with populations exceeding 5 million, Kolkata Municipal Corporation (KMC) ranks lowest in terms of budget ambition and scale, indicating stagnation in financial planning and urban investment.

2. Bengaluru Leads with a Doubling Budget

Bengaluru's municipal budget has witnessed sustained growth and is now twice the size of those of Hyderabad and Chennai, reflecting aggressive urban expansion and greater fiscal autonomy.

3. Surat Outpaces Larger Cities

Despite being less prominent than metros like Hyderabad or Chennai, Surat Municipal Corporation's budget has surpassed those cities as well as Kolkata, showcasing its industrial dynamism and efficient revenue mobilization.

4. State Finances Shape Urban Growth

The expansion capacity of municipal budgets is closely linked to the financial health of state governments. This helps explain the relatively muted budget growth in Hyderabad (Telangana) and Kolkata (West Bengal).

5. Chennai's Long Overdue Budget Boost

After years of stagnation, Chennai Corporation has significantly stepped up, with a 75% increase in budget size over the previous year - a long overdue move given the city's scale and infrastructure needs.