Officials admit that unchecked spending and neglect of income growth have weakened the corporation's financial position, forcing a halt to new projects in the 2026-27 budget.
Instead of launching new initiatives, the administration will now focus on completing pending work. Commissioner Shravan Hardikar has acknowledged that insufficient funds prevented the inclusion of several projects in the new budget.
The original budget for 2026-27 stands at Rs 5,660 crore, while grants from the Centre and state push the total to Rs 9,322 crore. The budget was presented on Saturday (February 28) to the newly appointed Standing Committee Chairman Abhishek Barne. Hardikar's budget makes clear that many previously announced projects have been dropped, with the administration emphasising spending limits due to weak finances.
In 2025-26, the tax collection department had been set a target of Rs 1,050 crore. However, with collections falling short, the target for 2026-27 has been reduced to
Rs 1,000 crore. The building permission department, too, has seen a decline. In 2024-25, it generated Rs 736 crore, but the target was cut to Rs 700 crore in 2025-26. With income again failing to meet expectations, the department has been given a modest target of Rs 750 crore for 2026-27.
The sharp fall in revenue has left the civic body struggling to maintain its reputation, with officials conceding that financial discipline and stronger income measures are urgently needed to restore stability.
The PCMC has presented its 2026-27 budget without any new projects, citing a severe revenue decline in 2025-26. The administration has instead focused on completing incomplete works. Officials admit that reckless spending during administrative rule and failure to create new sources of income have led to an imbalance, with expenditure outstripping revenue.
Commissioner Shravan Hardikar openly acknowledged that the corporation is facing a funds crunch and has therefore decided not to start any new projects. He confirmed that the budget has shrunk by Rs 700 crore this year, adding that the fragile financial condition left no room for costly new initiatives.

No new projects as municipal funds dry up

Large projects have been excluded due to a lack of funds. Revenue from tax collection, building permissions and other departments has fallen, while expected grants from the government have also been lower. The election code of conduct further stalled work, with tax department staff engaged in election duties for three to four months. Land ownership surveys were halted, stopping building permission cases. These resumed only after October, and officials now hope that permissions will increase and boost income. Hardikar clarified that despite this optimism, major projects could not be taken up due to inadequate funds.

Mayor's fund revived with Rs 50 crore provision

Meanwhile, the mayor's fund, which had been discontinued during the administrative rule, has been revived. A provision of Rs 50 crore has been made in the new budget. Through this fund, poor patients in the city will receive medical assistance of Rs 5,000 each, while the mayor will also be able to undertake special works across the city.

Smart city project shut, yet Rs 50 crore allocated

The Pimpri-Chinchwad Smart City Limited Company will be wound up on March 31, 2026, with all its projects transferred to the municipal corporation's respective departments. The office at Auto Cluster will also be closed. Yet, despite the impending closure, a provision of Rs 50 crore has been made for the smart city, raising questions across civic circles.

Standing committee to prune civic budget proposals

Commissioner Shravan Hardikar has prepared the 2026-27 budget, which will now be scrutinised by the standing committee. The committee is expected to issue recommendations, trimming certain works and suggesting others. This process is likely to spark discontent and friction among corporators as projects are cut or altered.

Old projects back in focus

The corporation has shifted its attention to completing old, pending works. These include the new municipal headquarters at Chinchwad, the Pimpri Dairy Farm railway flyover, the 700-bed Moshi super-speciality hospital, the cancer hospital at Thergaon, the fire academy in Pimpri, the Mamurdi-Sangavde bridge, the drainage master plan, the PCMC City Centre at Chinchwad, the Annasaheb Magar stadium at Nehrunagar, the Harit Setu project, the Bhama Askhed water scheme, the Dudulgaon Pradhan Mantri Awas Yojana, a new sports complex at Madanlal Dhingra ground in Pradhikaran, the badminton court at Wakad, the biodiversity park at Talawade, the Waste to Wonder park at Pimple Saudagar, the Mula and Indrayani river improvement project, biomining of old waste at Moshi depot, CNG production from wet waste at Moshi, sewage recycling and reuse, the renamed Sakhi Angan food street near Akurdi railway station, and education department initiatives such as Jallosh Shikshan, purchase of school materials, and Bharat Darshan tours for meritorious students.