Giuliani Criticizes NYC Mayor's Budget Projections

Former mayor claims current administration is inflating deficit estimates to justify tax hikes on high earners.

Published on Feb. 13, 2026

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Former New York City Mayor Rudy Giuliani has sharply criticized current Mayor Zohran Mamdani, accusing him of overstating the city's budget deficit by billions of dollars in order to justify a proposed 2% tax increase on high-income residents. Giuliani claims Mamdani cited a $7-9 billion deficit but failed to account for an additional $5 billion in expected revenue from a strong year on Wall Street, which Giuliani says makes up 40-50% of the city's budget.

Why it matters

This clash highlights an ongoing debate over how much New York City's budget relies on revenue from the financial sector versus progressive taxation. If Wall Street's performance falters, a heavy reliance on that revenue could exacerbate budget shortfalls, while higher taxes on high earners risk driving them out of the city. The city's fiscal path will depend on balancing these competing priorities and addressing both equity and service funding needs.

The details

Giuliani asserted that Mamdani 'initially overstated the city's projected shortfall by billions of dollars' in order to justify the proposed tax increase. He claimed the mayor cited a deficit of $7-9 billion while ignoring an additional $5 billion in expected revenue from a strong year on Wall Street. Giuliani, who was mayor from 1994-2001, said he reduced taxes 'more than any mayor in history' and produced budget surpluses within several years, helping the city weather the economic shock of 9/11.

  • Giuliani made his criticisms of Mamdani's budget projections in an interview on Newsmax's 'Bianca Across the Nation' on February 13, 2026.
  • Mayor Mamdani has proposed a 2% tax increase on high-income earners.

The players

Rudy Giuliani

Former mayor of New York City from 1994 to 2001, who claims he reduced taxes more than any previous mayor and produced budget surpluses.

Zohran Mamdani

Current mayor of New York City who has proposed a 2% tax increase on high-income earners to stabilize city finances and fund essential services.

Newsmax

The media outlet that hosted Giuliani's interview criticizing Mamdani's budget projections.

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What they’re saying

“Wall Street determines about 40 to 50 % of the budget.”

— Rudy Giuliani, Former New York City Mayor (Newsmax)

“He's not going to have any rich people left. I don't know who he's going to impose it on. They're all leaving.”

— Rudy Giuliani, Former New York City Mayor (Newsmax)

What’s next

The clash between Giuliani and Mamdani over the city's budget projections and tax proposals is likely to continue, with the debate shaping the fiscal path forward for New York City.

The takeaway

This dispute underscores the delicate balance New York City must strike between relying on revenue from the financial sector and implementing progressive taxation policies. The city's ability to weather economic shocks and fund essential services will depend on how it navigates these competing priorities.