For the fourth budget in a row, BMC has proposed a 16 per cent hike in property tax with a cautionary note that it will be the new elected body that will make the final decision. While the administration has been proposing the hike, the state governments (former MVA and now Eknath Shinde) have been rejecting it every year since 2020-21.

The BMC budget estimates for 2023-24 increased to Rs 52,619 crore with the help of fixed deposits. Rs 27,257-crore projects have been proposed of which 75 per cent will come from FDs as there has been no new source of income in a while. Though the civic body has Rs 88,000 crore in FDs, it needs Rs 1.25 lakh crore for infra projects and Rs 37,156 crore for pension. The corporation estimated Rs 6,000 crore from property tax in 2023-24 on the assumption of a 16 per cent hike. “We have estimated the income considering revision of property tax,” said Iqbal Singh Chahal, municipal commissioner.