Chittagong City Corporation budget for FY2026-27 has been unveiled with a proposed outlay of Tk 2,260.24 crore, placing emphasis on development works, revenue reform, waterlogging mitigation, mosquito control and technology-based civic services in Bangladesh’s main port city.
Chattogram City Corporation Mayor Dr Shahadat Hossain announced the budget on June 30 at the Theatre Institute Chattogram, presenting what the city authority described as a plan for a cleaner, greener, safer and more economically active city.
The corporation also placed a revised budget of around Tk 1,665.92 crore for FY2025-26, lower than the original Tk 2,145.42 crore allocation for that fiscal year. The revised figure indicates that the city corporation was unable to implement the full earlier budget, a familiar issue for many local bodies that depend partly on grants, project approvals and revenue collection from their own sources.
Chittagong City Corporation budget focuses on development and revenue
The Chittagong City Corporation budget sets out both spending priorities and revenue targets for FY2026-27. According to reported budget details, the corporation aims to raise about Tk 1,197.62 crore from its own sources, while a significant portion of funding is expected from government grants and other support.
The budget places the largest emphasis on development expenditure, including infrastructure, roads, repairs and related civic projects. It also includes allocations for operational and maintenance costs, staff salaries, debt repayment and service delivery.
For residents, the main question will be whether the proposed allocations translate into visible improvements in roads, drainage, lighting, waste collection and public health services. Chattogram’s rapid urban growth has placed heavy pressure on municipal infrastructure, making implementation as important as the size of the budget itself.
The mayor said the corporation was working to strengthen its revenue base through 44 revenue-generating projects. These are intended to reduce dependence on external support and make the city corporation more financially self-reliant. However, such goals will depend on how effectively the projects are executed and whether collection systems become more transparent and consistent.
Waterlogging in Chattogram gets renewed attention
Waterlogging remains one of Chattogram’s most persistent urban problems, especially during the monsoon season. The new CCC budget has allocated Tk 112 crore for waterlogging mitigation, up from the previous fiscal year’s allocation of Tk 75 crore.
The increase reflects the scale of public concern over flooding, blocked drains and poor water flow in parts of the city. The mayor said canal cleaning and drainage improvement work had already been carried out, including the removal of large quantities of soil and waste from canals.
The city corporation also referred to ongoing and planned drainage-related projects. These measures are expected to support wider efforts to reduce flooding, although Chattogram’s waterlogging problem involves multiple agencies, land-use issues, encroachment, drainage capacity and heavy rainfall.
Because of that, the budget allocation should be seen as one part of a broader response rather than a complete solution. Residents will likely judge the policy by whether flooding is reduced in vulnerable neighbourhoods during the coming monsoon seasons.
Mosquito control and public health measures included
The CCC budget FY2026-27 also increases attention to mosquito control. The city corporation has allocated Tk 25 crore for mosquito control activities, compared with Tk 9 crore allocated in the previous fiscal year.
The higher allocation comes amid continued public concern over dengue and other mosquito-borne diseases in urban Bangladesh. The mayor said mosquito control efforts would include awareness campaigns, anti-mosquito activities and the use of larvicides.
Public health measures in a dense urban area such as Chattogram depend not only on chemicals or spraying, but also on regular drain cleaning, waste management, removal of stagnant water and community participation. The budget’s effectiveness will therefore depend on coordination between health, waste management and engineering teams.
The corporation also said it was continuing food safety awareness, relief assistance and support for low-income communities, including activities linked to Trading Corporation of Bangladesh family cards.
Smart city projects and street lighting planned
The new budget also contains several technology-linked initiatives. The city corporation is installing 5,500 smart LED streetlights along 135 kilometres of roads with World Bank funding. Additional projects reportedly include solar-powered smart lighting, AI-based surveillance cameras and a Tk 215 crore smart traffic management system at 53 intersections.
These projects are part of the mayor’s stated goal of making Chattogram more technology-driven and better managed. Improved lighting can support road safety and public security, while traffic management systems may help at busy intersections if properly integrated with enforcement and road planning.
However, technology-based civic projects require maintenance, staff capacity, stable electricity, data management and long-term funding. Without those elements, smart city initiatives can become expensive infrastructure with limited practical value.
The budget’s promise, therefore, lies not only in installing equipment but in ensuring that it remains functional and useful after implementation.
Holding tax reform and collection of dues
A key part of the Chittagong City Corporation budget is the proposed reform of holding tax assessments. Mayor Shahadat Hossain said assessments that were previously set unreasonably were being reviewed through a regular review board.
This approach appears intended to address public concerns over excessive or disputed holding tax demands. At the same time, the mayor said outstanding dues from major industries, the port, railway authorities, container terminals and corporate entities would be collected.
The distinction is important. For ordinary residents and small property owners, reassessment could reduce pressure where tax calculations are considered unfair. For larger organisations with outstanding dues, the corporation is signalling a firmer collection policy.
The mayor also referred to digital systems for tax collection, which could allow residents to pay online and potentially reduce disputes by improving transparency. Whether this improves public trust will depend on clear assessments, accessible appeal mechanisms and consistent treatment of taxpayers.
Staffing shortage remains a major challenge
The mayor said the corporation’s approved workforce of 4,226 employees is insufficient to serve a city of nearly 70 lakh residents. To address the gap, the city corporation has been operating with temporary workers and is regularising long-serving temporary employees in phases.
Proposals for a new staffing structure and recruitment policy have reportedly been submitted to the Local Government Division. The mayor also said 120 workers had recently been recruited through a transparent and merit-based process.
Staffing is central to municipal performance. A city corporation cannot improve waste management, drainage, road repairs, tax collection or public health without adequate personnel. However, expanding the workforce also increases salary and pension obligations, making revenue reform and financial discipline necessary.
Underground markets and hospital project proposed
As part of efforts to address the street vendor issue, the mayor announced plans to construct four underground markets in the EPZ, Agrabad, Bahaddarhat and Station Road areas. The proposal appears aimed at easing pressure on roads, drains and footpaths while creating more organised commercial spaces.
The budget also includes a plan to build an international-standard hospital on eight acres of land along BFIDC Road in collaboration with the Bangladesh Army. Health infrastructure is an important civic priority, but the project will require careful planning, financing and management if it is to become operational and accessible.
Both proposals could have major public impact if implemented properly. At the same time, they will need feasibility studies, transparent procurement and coordination with relevant agencies to avoid delays or cost escalation.
Waste management and environmental concerns
The city corporation has said it now manages around 81% of Chattogram’s daily 3,200 tonnes of waste. It has also highlighted waste treatment plans, canal cleaning and environmental protection as part of its civic agenda.
Waste management remains one of the most visible tests of municipal governance. Regular collection, safe disposal, recycling systems and treatment facilities are all necessary to reduce pollution and improve public health.
The mayor also called for action against hill cutting and deforestation, while encouraging tree plantation. These concerns are especially relevant in Chattogram, where unplanned development, slope cutting and drainage failures can worsen environmental risks.
Implementation will decide the budget’s impact
The Chittagong City Corporation budget for FY2026-27 is broad in scope. It covers development, drainage, mosquito control, public health, revenue collection, digital systems, staffing, markets, hospitals and waste management.
On paper, the budget reflects many of the city’s most urgent needs. Chattogram requires better drainage, safer roads, improved waste systems, stronger public health measures and more reliable municipal revenue. The proposed allocations and projects are therefore directionally significant.
The harder task is implementation. Previous budget revisions show that proposed figures do not always translate into completed work. Delays in grants, weak revenue collection, administrative bottlenecks and coordination problems can all reduce the effect of a large budget.
For residents, the success of the FY2026-27 budget will be measured less by the headline figure and more by practical outcomes: cleaner streets, fewer flooded roads, better lighting, improved mosquito control, transparent tax assessments and more responsive civic services.
The Tk 2,260.24 crore budget gives the city corporation a framework for action. Its real value will depend on whether that framework produces measurable improvements across Chattogram in the year ahead.
Published in SouthAsianDesk, July 1, 2026
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