Synopsis
On February 4, the BrihanMumbai Municipal Corporation presented its budget estimates of Rs 74,427.41 crore for 2025-26, indicating a 14.19% increase over the previous year, without any tax hikes. Emphasis is placed on enhancing infrastructure, healthcare, and introducing user charges for waste management.Key Takeaways
- BMC presented a budget of Rs 74,427.41 crore for 2025-26.
- Budget reflects a 14.19% increase over 2024-25.
- No tax or fee hikes proposed.
- Introduction of SWM User Charges to boost revenue.
- Focus on infrastructure and healthcare enhancements.
Mumbai, Feb 4 (NationPress) In anticipation of the forthcoming elections, which are anticipated post-monsoon, the BrihanMumbai Municipal Corporation (BMC) Additional Commissioner Abhijit Bangar unveiled the Budget Estimates for the fiscal year 2025-26 amounting to Rs 74,427.41 crore. This figure marks a 14.19 percent increase compared to the 2024-25 Budget Estimates of Rs 65,180.79 crore. Notably, the BMC has refrained from proposing any increments in taxes, fees, or fares in this budget.
The BMC is placing a strong emphasis on enhancing revenue by optimizing expenditures while also focusing on upgrading infrastructure and services, as well as reinforcing healthcare and the education systems.
To boost revenue income, the BMC has suggested implementing solid waste management (SWM) User Charges.
“With the increasing population and the rising volume of waste in Mumbai, the city’s expenses on waste management have surged significantly. To ensure operational efficiency and financial viability, the introduction of ‘SWM User Charges’ has become essential,” the budget document states.
“The funds generated from SWM User Charges will empower the BMC to enhance its waste management systems, invest in cutting-edge technology, and improve overall service delivery, ensuring a cleaner and healthier Mumbai for its inhabitants,” the document adds.
Additionally, the BMC is advocating for policy reforms and modernization, including the development of a Centralized Property Information System to consolidate all records of BMC-owned assets and promote their development through innovative land development strategies, such as utilizing vacant municipal plots under a PPP model for effective revenue generation.
To generate income from BMC properties, the civic body has decided to auction BMC plots under the 100 percent Annual Statement of Rates (ASR).
Consequently, it plans to auction a plot at the Asphalt Plant, Worli on lease for development by private builders.
The BMC is also set to implement an Entertainment Tax/Fees, following amendments after a designated exemption period.
The budget document indicates that a proposal to increase fees for renewing Trade Licences, under section 394, is underway and will be concluded soon.
The proposed Budget Estimates for Revenue Income for 2024-25 was Rs 35,749.03 crore, which has been revised to Rs 40,693.85 crore, reflecting a rise of 13.83 percent or Rs 4,944.82 crore.
“By December 31, 2024, the actual income received was Rs 28,308.37 crore. The estimated Revenue Income for 2025-26 is projected at Rs 43,159.40 crore, exceeding the 2024-25 Budget Estimates by 20.73 percent.
“Key revenue sources include compensation in lieu of Octroi at Rs 14,398.16 crore, Development Plan fees and premiums of Rs 9,700 crore, property tax of Rs 5,200 crore, water and sewage charges of Rs 2,363.15 crore, interest on investments at Rs 2,283.89 crore, supervision charges of Rs 2,130.17 crore, state government grants of Rs 1,325.07 crore, and others totaling Rs 3,709.31 crore.
“As of December 31, 2024, the total pending dues from various state government departments under BMC jurisdiction, relating to Grant-in-aid, Property Tax, and others, amount to Rs 9,750.23 crore. This includes Rs 6,581.14 crore from the Education Department of the state government,” the budget document states.
For 2024-25, the revenue expenditure was estimated at Rs 28,763.94 crore, revised to Rs 26,835.25 crore, reflecting a decrease of Rs 1,928.69 crore.
The actual revenue expenditure incurred by December 31, 2024, stands at Rs 15,912.37 crore, which is 59.30 percent of the Revised Estimates 2024-25.
“For 2025-26, a budget estimate of Rs 31,204.53 crore is proposed for revenue expenditure, while Rs 43,162.23 crore is earmarked for capital expenditure,” it concludes.
