The Brihanmumbai Municipal Corporation (BMC) faces a proposed liability of Rs 1.93 lakh crore for ongoing and upcoming projects over the next five to six years. Over the past two and a half years, the BMC has approved proposals amounting to around R1 lakh crore. The corporation’s total fixed deposits stand at Rs 81,774.43 crore, but Rs 42,230 crore is earmarked for committed liabilities and cannot be withdrawn. Meanwhile, only Rs 39,543.64 crore is available for infrastructure development.
“Although this amount is deposited for infrastructure, we can’t withdraw the full sum at once. For 2025-26, we have estimated using R16,699.78 crore. We continuously reinvest our savings into fixed deposits,” a BMC official from the accounting department told mid-day.
“We understand that we have a significant number of projects in progress, but they will span the next five to six years. For 2025-26, 23 per cent of the total estimated revenue will come from fixed deposit withdrawals, while 58 per cent will be from our annual revenue income. Additionally, we are focusing on generating revenue from new sources and strengthening existing ones,” said the official.
Civic chief Bhushan Gagrani, in his budget speech, stated that the BMC is seeking legal advice on introducing charges for solid waste collection, property tax on commercial slum properties, and water and sewage charges for unmetered residences below 500 sq ft.
“We have waived property tax for residences up to 500 sq ft. Water and sewage charges are usually collected through property tax, but in many areas, especially in the island city, water is supplied without metres. Therefore, we have decided to levy water and sewage charges on these residences since they receive water from us,” the official added.
“By implementing these new revenue sources, we expect to generate at least Rs 2,000 crore, which is currently not part of our revenue. Additionally, the revision of property tax and water charges is still pending,” the official said.
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