While they have already affected development work this year, losses due to COVID-19 will also hit allocations for projects in the financial year 2021-22, which happens to be an election year. This will be reflected in BMC’s budget for next year, work on which has started. After reducing Rs 2,500 crore from capital expenditure this year, civic departments have been told to cut requirements by 20 per cent to 25 per cent for 2021-22.

The budget is likely to be presented in the first week of February, 2021. However, considering the political pressure amid the election, it may also break its fixed deposits to fund fancy projects. Civic elections will be held in January-February 2022.