Shimla News
Shimla MC Unveils ₹688 Crore Budget for 2026–27, Prioritises Urban Poor, Women & Green Development
In a significant move aimed at reshaping the future of the hill city, the Shimla Municipal Corporation has presented a massive 688.02-crore budget for the financial year 2026–27 — more than three times last year’s allocation.
In a significant move aimed at reshaping the future of the hill city, the Shimla Municipal Corporation has presented a massive 688.02-crore budget for the financial year 2026–27 — more than three times last year’s allocation.
Mayor Surinder Chauhan, while presenting his third budget since taking office in 2023, outlined a vision that blends financial stability with social responsibility. The budget strongly focuses on strengthening permanent revenue sources, reducing dependence on government grants, and creating long-term income through municipal assets.
A Big Leap from Last Year
For comparison, the 2025–26 budget stood at 188.35 crore. This sharp jump reflects the corporation’s expanded development roadmap and its renewed emphasis on infrastructure and welfare.
The Mayor made it clear: the goal is not just expansion, but inclusive growth — especially for the urban poor, women, youth and senior citizens.
Major Announcements in the 2026–27 Budget
Several ambitious development projects were announced:
- 66 crore Wellness Centre at Kachhighati
- 34 crore construction of 72 staff quarters at Boileauganj
- 200 crore residential flats project
- 140 crore multi-purpose modern complex
- Installation of 1,000 solar streetlights across the city
- 2 MW solar power plant at Bharyal
- Implementation of e-Nigam digital governance system
The focus on renewable energy, digital systems and housing shows a clear shift towards sustainable and tech-driven urban management.
Clean & Green Shimla
Environmental protection remains a core priority. In 2025–26, nearly 10,000 saplings were planted across the city. The corporation has now set a target of planting more than 10,000 additional saplings in the coming year.
The emphasis on greenery aligns with Shimla’s identity as a heritage hill city that depends heavily on environmental balance and tourism.
Financial Snapshot
Between April 1 and December 31, 2025:
- Total Income: 143.50 crore
- Total Expenditure: 143.69 crore
- Revenue Received: 60.56 crore
- Development Grant: 33.32 crore
- Capital Grants: 49.62 crore
The Mayor acknowledged that municipal resources remain limited and stressed the need for collective decisions to strengthen revenue streams.
Political Reactions
The budget was passed after discussions among councillors. However, BJP councillors walked out earlier and were absent during the final approval.
Congress councillors described the budget as “historic” and “visionary,” stating it would drive overall development of the city. On the other hand, BJP members criticised it as disappointing and questioned its validity, citing procedural concerns.
Additional Key Initiatives
Apart from major infrastructure projects, the budget also includes:
- Installation of CCTV cameras
- Food vans at 26 locations
- Underground duct from Chotta Shimla to Chaura Maidan
- Cycle stands at multiple locations
- Implementation of Mukhya Mantri Shahri Ajiveeka Guarantee Yojana
What This Means for Shimla
This year’s budget signals a clear attempt to transform Shimla into a cleaner, greener and financially stronger urban body while ensuring social protection for vulnerable sections.
If implemented effectively, the projects could reshape public infrastructure, promote renewable energy and improve quality of life for thousands of residents.
For the people of Shimla, the coming financial year could be one of visible change — not just in numbers, but on the ground.
