KCC announces Tk601.79cr budget for FY2026-27

The Khulna City Corporation (KCC) has proposed a budget of Tk601.79 crore for the 2026-27 fiscal year, without imposing any new taxes.

KCC Administrator Nazrul Islam Manju today announced the budget at the Shaheed Altaf Auditorium of the Nagar Bhaban.

The proposed budget has a deficit of Tk29.54 crore as expenditure exceeds projected revenue.

Of the total budget, Tk211.90 crore has been projected as revenue income against Tk241.44 crore in revenue expenditure. Government grants under the second component have been estimated at Tk197.62 crore.

For the 2025-26 fiscal year, KCC had initially set a budget target of Tk719.50 crore, which was revised to Tk338.97 crore.

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The achievement rate was 71.70% for the own-fund component and 38.52% for the development fund, with an overall achievement rate of 47.12%.

Although the budget has been described as development-oriented, it is largely dependent on government and donor grants as well as the corporation’s own revenue.

Manju attributed the shortfall mainly to changes in the country’s political situation and completion of several major projects.

He said Tk79.46 crore has been allocated under the special development fund for the current fiscal year, while Tk150 crore has been earmarked under the Annual Development Programme (ADP).

Of the ADP allocation, Tk92.87 crore has been earmarked for physical infrastructure, Tk20.50 crore for public health, Tk33.13 crore for conservancy, Tk2 crore for emergency water supply and Tk1.50 crore for veterinary services.

The administrator said no new tax would be imposed. Instead, KCC would focus on collecting arrears of municipal taxes, imposing taxes on newly constructed buildings under existing rules and expanding its own revenue sources through markets, shops, new establishments, the Zia Hall complex and modernised city parks.

He said priority had been given to drainage improvement, removal of waterlogging, healthcare and waste management.

Measures to combat dengue, including mosquito-control drives, public awareness campaigns, leaflet distribution and announcements through loudspeakers, would continue, he added.

KCC also plans to plant around 50,000 trees and undertake climate-resilient infrastructure development in low-income settlements, including roads, drains, culverts and latrines.

Manju said Tk73.36 crore had been allocated from KCC’s own funds for development after meeting its regular establishment costs. Of this, Tk55.27 crore has been earmarked for infrastructure, BMDF, street lighting, education, sports and culture, social welfare, environment, public health, veterinary and conservancy sectors.

Besides, Tk18.09 crore has been allocated for repair and maintenance and Tk5.90 crore for capital expenditure.

He said nine ongoing projects supported by the government and development partners, including the Asian Development Bank, German development agencies and the Netherlands Development Organisation, are expected to bring Tk79.47 crore during the fiscal year.

KCC Chief Executive Officer Rajib Ahmed chaired the budget session, attended by Khulna WASA Chairman Md Moniruzzaman Moni, political and civic leaders and journalists.