BMC to Present Rs 65,000 Crore Budget on Feb 4
Mumbai’s Brihanmumbai Municipal Corporation (BMC) is set to unveil its budget for the fiscal year 2025-26 on February 4. This budget, which marks the third iteration under administrative control since the municipality’s elected term ended, comes at a time when the civic body is facing financial pressures. The size of this year’s budget is expected to touch a significant Rs 65,000 crore, a considerable increase from the previous year’s Rs 59,954 crore, reflecting the rising capital expenditure commitments.
The budget will be presented by Additional Municipal Commissioner Dr. Amit Saini, starting with the Education Department’s estimates. Following this, the budget for the entire BMC will be laid out by Additional Municipal Commissioner Abhijit Bangar, under the watchful eye of Municipal Commissioner Bhushan Gagrani. This is Gagrani’s first budget as the municipal commissioner, and he is expected to emphasise fiscal prudence while navigating the growing financial challenges facing the city. A notable feature of this year’s budget is its focus on large-scale infrastructure projects such as the second phase of the Coastal Road, the Goregaon Mulund Link Road, and sea water desalination initiatives. Despite a strained revenue stream, which includes stagnation in property tax collection and dwindling fixed deposits, the BMC is committed to sustaining these projects. To fund these, the municipality will likely dip into its reserve fund, further escalating the size of the budget.
The city’s financial situation has worsened due to various factors, including the cessation of zakat funds and disputes over property tax assessments. The fiscal deficit is now more apparent, and the municipality’s inability to establish new revenue sources has added pressure. Moreover, with an election likely to be held later this year, it is expected that the budget will reflect populist measures, though property tax hikes are unlikely. However, there may be a strategic broadening of property tax zones, possibly incorporating commercial plots in slum areas. Gagrani’s tenure thus far has been marked by an effort to impose financial discipline. By curbing excessive expenditures and focusing on the long-term sustainability of development projects, he has set a cautious yet forward-looking tone for the city’s financial future. However, with election dynamics at play, balancing electoral promises with fiscal responsibility remains a significant challenge. This year’s budget will be critical in determining the financial trajectory of the BMC, with the outcome potentially influencing the timing and nature of upcoming municipal elections.
