Municipal bonds open new funding avenue for Bengaluru corporations, but will reliance on government fade?

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.