BMC Seeks New Revenue Sources Amid Rs 1.93 Lakh Crore Commitments for Ongoing Projects
The Brihanmumbai Municipal Corporation (BMC) is facing a financial challenge, with ongoing and upcoming projects in the city set to cost a staggering Rs 1.93 lakh crore over the next five to six years. To meet these financial commitments, BMC officials are now looking at new revenue streams that can be implemented in the coming years, as existing resources might not be enough to cover the substantial outlay required.
Over the past two and a half years, BMC has approved proposals worth approximately Rs 1 lakh crore for various infrastructure projects. These include roadways, waste management initiatives, and public amenities. However, the corporation’s total fixed deposits stand at Rs 81,774.43 crore, with Rs 42,230 crore earmarked for committed liabilities, leaving a limited amount for new infrastructure development. Only Rs 39,543.64 crore is available for the creation of new assets or the expansion of existing ones. Despite this, BMC continues to reinvest its savings in fixed deposits to earn returns, but even this amount cannot be fully accessed at once. For 2025-26, BMC estimates that 23 per cent of its total revenue will be generated from fixed deposit withdrawals, while the remaining 58 per cent will come from its annual revenue income. In light of the growing financial strain, BMC is also actively seeking new avenues to boost its revenue collection. In a bid to alleviate the pressure, BMC is reviewing various ways to generate additional income. One of the key sources being explored is the introduction of charges for solid waste collection. As the city grapples with rising waste management costs, this new fee could be a significant contribution to the municipal coffers. Along with this, BMC is also considering the imposition of property tax on commercial slum properties, which are currently exempt from the tax system.
Additionally, the corporation is contemplating water and sewage charges for unmetered residences that fall under the 500 sq ft category. Many homes, especially in the island city, are supplied with water without metering, leading to an imbalanced system where charges are not collected in a fair manner. As these properties still benefit from municipal water services, the BMC plans to levy charges on them to ensure that all residents contribute fairly to the city’s water supply and sewage systems. The implementation of these new charges is expected to generate an estimated Rs 2,000 crore in additional revenue for the BMC. This revenue will significantly bolster the city’s finances and help cover part of the costs for the numerous infrastructure projects that are currently underway or planned for the future. Moreover, BMC is still awaiting the finalisation of the revision of property tax and water charges, which could further increase the revenue base in the coming years. These revisions, however, are still pending and are expected to be finalised after receiving the necessary legal advice and completing the review process.
While the introduction of new charges may be a necessary step to ensure that Mumbai’s infrastructure is adequately funded, it will likely affect residents, particularly in areas where these fees are being implemented for the first time. Ashok Deshmukh, a resident of Dadar, expressed concern, saying, “Although I understand the need for better infrastructure, additional charges for waste collection and water seem like an added financial burden, especially for people living in slums or smaller homes.” On the other hand, Shilpa Patil, a local business owner in Andheri, believes that the move will eventually benefit the city as a whole. “It’s tough to see higher charges coming in, but if it means better roads and waste management, I’m all for it. Mumbai is growing fast, and we need solid plans to keep up with the demands.” As Mumbai continues to expand and develop, the BMC’s efforts to secure new revenue sources are vital to meeting the city’s Rs 1.93 lakh crore financial commitments. By exploring new charges for waste collection, slum properties, and water usage, the corporation hopes to relieve some of the financial pressures it faces. The success of these initiatives will depend on the finalisation of the legal review and the careful implementation of these policies, which will need to balance the city’s growing demands with the financial capacity of its residents.
