Mumbai, Feb 4 (IANS) Ahead of the upcoming elections, which are expected after monsoons, the BrihanMumbai Municipal Corporation (BMC) Additional Commissioner Abhijit Bangar on Tuesday presented to Commissioner Bhushan Gagrani the Budget Estimates for the fiscal year 2025-26 of Rs 74427.41 crore which exceeds the Budget Estimates of 2024-25 of Rs 65180.79 crore by 14.19 per cent. However, the BMC has not proposed hike in taxes or fees or fares in the budget.
BMC has laid emphasis on stepping up revenue income by rationalisation of expenditure and laying more focus on enhancement of infrastructure and services, strengthening healthcare infrastructure and equality health and education system.
In a bid to further increase the revenue income, BMC has proposed solid waste management (SWM) User Charges.
“The increasing population and growing volume of solid waste in Mumbai have significantly escalated the city’s expenses on waste management. To ensure smooth operations and financial sustainability, it has become imperative to introduce ‘SWM User Charges’.
“The revenue generated from SWM User Charges will enable BMC to enhance its waste management systems, invest in modern technology and improve overall service delivery, thereby ensuring a cleaner and healthier Mumbai for all its residents,” reads the budget document.
Further, the BMC has proposed policy reforms and modernisation wherein a Centralised Property Information System is being developed to consolidate all records of BMC-owned assets and facilitate their development through innovative land development models, including exploration of utilising vacant municipal plots under PPP model as a sustainable and efficient revenue generation strategy.
In order to generate revenue from BMC plots, the civic body has taken a policy decision to auction BMC plots under 100 per cent Annual Statement of Rates (ASR).
Accordingly, it has decided to auction a BMC plot at Asphalt Plant, Worli on lease for development through private builders.
The BMC proposes levy of Entertainment Tax/Fees that will be implemented as per the amendments after an exemption period.
According to the budget document, the proposal for increasing fees for renewal of Trade Licences, under section 394, is in process and will be finalised shortly.
The Budget Estimates of Revenue Income for 2024-25 was proposed at Rs 35749.03 crore which is revised to Rs 40693.85 crore, a rise by 13.83 per cent at Rs 4944.82 crore.
“The actual income received up to 31.12.2024 is Rs 28308.37 crore. The estimated Revenue Income for 2025-26 is proposed at Rs 43159.40 crore which exceeds Budget Estimates of 2024-25 by 20.73 per cent.
“The major sources contributing to revenue income include compensation in lieu of Octroi at Rs 14,398.16 crore, Development Plan fees and premiums Rs 9,700 crore, property tax Rs 5,200 crore, water and sewage charges Rs 2,363.15 crore, interest on investment Rs 2,283.89 crore, supervision charges Rs 2,130.17 crore, grant in aid from state government Rs 1,325.07 crore and others Rs 3,709.31 crore.
“Total pending dues from the offices of various departments of the State Government under jurisdiction of BMC on account of Grant-in-aid, Property Tax and others are amounting to Rs 9750.23 crore as on 31st December 2024. This includes, an amount of Rs 6581.14 crore on account of grant-in-aid from Education Department of the State Government,” reads the budget document.
For 2024-25, revenue expenditure was estimated at Rs 28763.94 crore which is revised to Rs 26835.25 crore, a fall by Rs 1928.69 crore.
The actual revenue expenditure of Rs 15912.37 crore is incurred up to 31.12.2024, which is 59.30 per cent of the Revised Estimates 2024-25.
“Budget Estimates of Rs 31204.53 crore is proposed on account of revenue expenditure for 2025-26. As far as Capital Expenditure is concerned, Rs 43162.23 crore is proposed in 2025-26,” it stated.
–IANS
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