The Brihanmumbai Municipal Corporation (BMC) has in its budget for the financial year 2025-26 allocated Rs 1,000 crore for the civic bus services BEST, acknowledging its financial challenges.
The Brihanmumbai Electric Supply and Transport (BEST) undertaking, the second-largest public transport system in the metropolis after suburban trains, operates a fleet of around 3,000 buses, serving more than 30 lakh commuters daily.
In the BMC Budget 2025 document presented on Tuesday, the BMC stated that despite its own financial commitments, it has made the provision considering BEST`s financial position.
“Although BMC itself has a huge requirement of funds towards its ongoing projects and other important objectives, a total provision of Rs 1000 crore is proposed in 2025-26 as a grant to BEST undertaking considering its financial position,” the document stated.
As per the BMC Budget 2025 documents, the funds will be used for infrastructure development, capital equipment purchases, loan repayments, wet lease buses, pay revisions, daily operations, the Intelligent Transport Management System (ITMS) project, Diwali bonuses of employees, pensioner dues and electricity bills.
The BMC Budget 2025 document also says that as per the state directives, BMC will contribute Rs 128.65 crore, its 5 per cent share, towards the procurement and deployment of 2,000 electric buses for Mumbai, but it is not clear if the amount is part of the Rs 1,000 crore assistance or a separate provision.
The BMC also pointed out that since 2012-13, it has provided Rs 11,304.59 crore in financial assistance to BEST, which is financially bleeding and its accumulated loss amount is around Rs 9,500 crore.
The document also noted that Rs 992 crore has been sanctioned by the 15th Finance Commission for BEST`s electric bus purchases.
Of this, Rs 493.38 crore has already been received and disbursed, with the remaining Rs 498.62 crore to be provided once received.
The BMC, considered the richest civic body in the country, on Tuesday presented its budget of Rs 74,427 crore for the year 2025-26.
The additional municipal commissioners presented the budget to BMC Commissioner Bhushan Gagrani, who is the state-appointed administrator of the civic body, at the BMC headquarters in Mumbai.
The civic body is under an administrator since the term of the corporators ended on March 7, 2022.
“The budget estimate for FY 2025-26 is proposed at Rs 74427.41 crore, which exceeds the budget estimates of 2024-25 i.e. Rs 65180.79 crore, by 14.19 per cent,” the document reads.
For the third year, the budget was presented to the administrator instead of the usual practice of the municipal commissioner presenting the budget to the standing committee.
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