With Tuesday’s budget, civic body will seek to strengthen income streams, including rescheduling of property tax collection; the BMC has fixed deposits of Rs 81,000 crore, and nearly half of its budget for 2024-25 of Rs 59,954 crore has been allocated for administrative and daily operations
BMC to table budget for 2025-26 on Tuesday. File pic/Shadab Khan
The Brihanmumbai Municipal Corporation (BMC) budget for the year 2025-26 will be tabled on Tuesday, February 4, with major mega projects in hand. Ahead of the BMC Budget 2025, mid-day examined the corporation’s liabilities and assets and found that the cost of ongoing projects significantly exceeds the available funds. Projects worth approximately Rs 1 lakh crore have been approved in the last two years, including mega projects worth Rs 68,441 crore.
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The BMC has fixed deposits of Rs 81,000 crore, and nearly half of its budget for 2024-25 of Rs 59,954 crore has been allocated for administrative and daily operations. Payments for these projects will begin after two to three years, meaning there won’t be an immediate financial strain in the short term. However, liquidity challenges may arise later, officials warned.
“Although we have secured funds for some projects, we need to strengthen our income sources. Since introducing new fees to increase revenue is not feasible, we are considering rescheduling property tax, collecting property tax from commercial slums, imposing user levy fees on solid waste management and revising the redevelopment policy for leased and tenanted plots. Additionally, the BMC is working on leasing out new plots,” said an official ahead BMC Budget 2025.
Bhushan Gagrani, commissioner, BMC. Pic/Kirti Surve Parade
On January 28, mid-day reported that the BMC was planning to collect property tax from commercial slums on a floor-wise basis, targeting revenue of Rs 250 crore. Additionally, as reported on January 25, the civic body is considering an increase in property tax, while an 8 per cent hike in water tax is also under consideration.
Financial stability
BMC Commissioner Bhushan Gagrani said, “We are looking to strengthen our current revenue sources to ensure sufficient funds for future payment obligations related to ongoing projects.”
The Brihanmumbai Municipal Coporation headquarters. File pic
Former Mayor and UBT Spokesperson Kishori Pednekar warned, “For over two decades, BMC’s liabilities never exceeded available funds. This is the first time we are seeing such a situation. Financial instability could disrupt the administration and affect daily services. Running BMC is not a show business; it directly impacts citizens’ lives.”
Former BJP corporator Bhalchandra Shirsat countered the concerns, saying, “BJP is committed to Mumbai’s development. The mega projects initiated in 2014 are financially viable if one carefully analyses BMC’s revenue sources. The financial condition is not as critics claim.”
Civic activist Nikhil Desai expressed scepticism about BMC undertaking massive projects, saying, “I don’t understand why BMC took on a large-scale project like the Coastal Road. Such projects should be handled by government agencies. BMC should focus on the city’s daily needs.”
Another activist, Anil Galgali, cautioned, “BMC should not succumb to political pressure when financial stability is at stake. Large projects can destabilize city administration, impacting essential services. The administration must evaluate financial capacity before approving such projects.”
Rs 81,000 cr
Total value of BMC’s fixed deposits
Major mega projects
Concreting work being carried out near Mantralaya. File pic
Road Concreting Project: Rs 12,330 CR
The BMC launched a large-scale road concreting drive:
. 2023: 397 km of roads approved, worth Rs 6,080 crore
. 2024: 400 km of roads approved, worth Rs 6,250 crore
Completion timeline: First phase by May 2025 and the remaining work by 2026-27
The proposed site for the connector. Pic/Ashish Raje
Dahisar to Bhayandar Connector: Rs 1,998 CR
Length: 5 km elevated road
Status: Awaiting construction, expected completion by 2028
Funding: Entire cost borne by BMC, despite 3.5 km being in MBMC jurisdiction
Seven plants are under construction to treat sewage water. File pic
Sewage Treatment Plants (STP): Rs 27,000 CR
Under the Mumbai Sewage Disposal Project-II (MSDP), seven STPs are under construction to treat 2,464 million litres of sewage daily.
Sanctioned: December 2022
Funding Allocated: Rs 3592 crore in 2023-24, Rs 5045 crore proposed for 2024-25
Completion timelines:
. Ghatkopar and Bhandup: 20-25 per cent complete, due by 2027
. Malad: 3 per cent complete, due by 2028
. Versova: 17 per cent complete, due by 2024
. Dharavi: 16 per cent complete, due by 2027
. Bandra: 19 per cent complete, due by 2027
. Worli: 13 per cent complete, due by 2027
Goregaon-Mulund Link Road Tunnel. Representation pic
Goregaon-Mulund Link Road Tunnel: Rs 6322 CR
Length: 12.2 km, including a 4.7 km tunnel under Sanjay Gandhi National Park
Completion Target: October 2028
Debris Processing Plants: Rs 2000 CR
Locations: Dahisar and Kalyan
Status: Both plants operational
Proposed Coastal Road site near Infinity Mall in Malad. Pic/Ashish Raje
Coastal Road (Versova to Dahisar): Rs 16,621 CR
Length: 22.93 km, including 18.47 km for a road and 4.46 km for a connector to the Goregaon-Mulund Link Road
Completion Target: 2028
Status: Awaiting necessary approvals, physical work yet to start
The proposed site for the project. Pic/Satej Shinde
Eastern Freeway Extension (Orange Gate to Grant Road): Rs 1,330 CR
Travel Time Reduction: From 30-35 mins to 6-7 mins
Completion Target: 3.5 years
Yevai (Bhiwandi) to Mulund Water Tunnel: Rs 4,500 CR
Length: 21 km water conveyance tunnel
Completion Target: 6 years
Financial Overview
Declining bank deposits:
BMC’s fixed deposits have reduced by Rs 10,000 crore over four years:
2021-22: Rs 91,690 crore
December 2024: Rs 81,000 crore
2024-25 Budget: Rs 59,954 crore
Revenue estimate: Rs 35,749 crore
Additional revenue: From special funds, land premiums, grants, and other sources
Major sources of income
State government grant: R1110 crore/month after octroi abolition
Property tax: R5847 crore collected till December 2024, target R6200 crore
Water and sewage tax: Estimated Rs 3927 crore for 2024-25
Development plan receipts: Estimated Rs 5800 crore
