Mangaluru: The Deputy Commissioner and Administrator of the Mangaluru City Corporation, Darshan H V, presented the civic body’s budget for the financial year 2026–27 on Thursday at Mangala Hall.
The total budget, including the opening balance, has been estimated at ₹937.69 crore. The projected expenditure stands at ₹781.51 crore, resulting in a surplus budget of approximately ₹156.17 crore, reflecting a stable financial outlook for the coming year.
Review of previous financial year
While presenting the budget, Darshan H V provided a detailed review of the ongoing financial year 2025–26. The corporation had anticipated a total revenue of ₹644.64 crore for the year.
However, by the end of December 2025, only ₹342.25 crore had been collected. On the expenditure side, against a projected ₹789.72 crore, an amount of ₹393.47 crore had been spent by the same period. These expenditures were funded through a combination of the corporation’s own revenue streams and government grants.
Officials indicated that the figures reflect a mid-year financial position, with further collections and spending expected in the final quarter.
Revenue projections for 2026–27
For the upcoming financial year, the Mangaluru City Corporation expects to generate ₹337.25 crore from its own revenue sources.
A significant portion of this is expected to come from property tax, estimated at ₹90 crore. Water charges are projected to contribute ₹55 crore, while ₹26 crore each is expected from solid waste management tax and building permits along with premium Floor Area Ratio (FAR).
Additional revenue streams include ₹26.48 crore from other miscellaneous sources, ₹7.31 crore from market loans, ₹15 crore from bank interest, ₹5.47 crore from rent and lease income, and ₹3 crore from road-cutting and restoration charges.
These projections highlight the corporation’s reliance on a mix of taxation, service charges, and non-tax revenue sources to sustain its operations.
Government grants and scheme funding
Apart from its own revenue, the Mangaluru City Corporation is set to receive substantial financial support from both state and central governments.
The Karnataka state government is expected to provide grants totalling ₹199.23 crore. These funds will be allocated towards salaries, State Finance Commission (SFC) untied funds, direct wage payments to civic workers, and stamp duty surcharge, among other heads.
From the central government, the corporation anticipates ₹93.36 crore under various schemes. These include AMRUT 2.0 (Jal Hi Amrit), National Urban Livelihoods Mission (NULM), Swachh Bharat Mission, and grants from the 15th and 16th Finance Commissions, along with funds linked to National Green Tribunal (NGT) directives.
These grants are expected to play a crucial role in funding infrastructure development, sanitation, and urban welfare programmes in the city.
Focus on balanced growth
The surplus budget of ₹156.17 crore indicates a cautious yet growth-oriented approach by the administration. By maintaining a balance between revenue generation and expenditure, the civic body aims to strengthen urban infrastructure and improve service delivery.
Officials emphasised that efficient utilisation of funds, along with timely implementation of government schemes, will be key to achieving developmental goals in the city.
Conclusion
The ₹937.69 crore budget presented by Darshan H V underscores the Mangaluru City Corporation’s commitment to financial discipline and urban development. With a healthy surplus and diversified revenue streams, the corporation is poised to enhance civic amenities and support the growing needs of Mangaluru in the financial year 2026–27.