The now-defunct Bruhat Bengaluru Mahanagara Palike’s predecessor, Bangalore Municipal Corporation, was the first civic body to raise municipal bonds in the mid-1990s.
| Photo Credit: File Photo
As the State Budget 2026–27 proposed the issuance of municipal bonds for infrastructure projects, the new Bengaluru city corporations said the move presents an opportunity for them to take up major projects without relying on State government funds.
However, corporations with relatively lower revenue potential may still have to depend on the government to act as a guarantor. On the other hand, while urban planners welcomed the move, they warned that unplanned or poorly planned issuance of bonds could add an additional layer of debt burden on the corporations.
Published – March 08, 2026 12:45 pm IST
