Mumbai's Biggest Civic Budget Unveiled, No Tax Hikes

The Brihanmumbai Municipal Corporation has unveiled a record Rs 74,427.41 crore budget for 2025-26 without raising taxes. This budget aims to boost infrastructure, adjust revenue through new levies on slum area commercial properties, and support services like BEST, reflecting diverse civic priorities.

The Brihanmumbai Municipal Corporation (BMC) unveiled its largest-ever budget of Rs 74,427.41 crore for the fiscal year 2025-26 without raising taxes. The budget, presented to municipal commissioner Bhushan Gagrani, exceeded last year's figure by 14.19%. This significant financial plan aims to fulfill the aspirations of Mumbai residents, noted Gagrani at a subsequent press conference.

While no increases in property or water taxes were proposed, the BMC announced plans to impose property tax on commercial establishments within slum areas, expecting to generate Rs 350 crore in additional revenue. The budget, showing a Rs 60.65 crore surplus, sets aside Rs 43,162.23 crore for capital expenditure. It anticipates an estimated revenue of Rs 43,159.40 crore, including Rs 14,398 crore as compensation for abolished Octroi, Rs 9,700 crore from Development Plan fees, and Rs 5,200 crore from property tax.

Highlighting a shift in expenditure priorities since 2017-18, Gagrani stated that the BMC reduced its revenue expenditure from 75% to 42% while increasing capital expenditure from 25% to 58%. Additionally, Rs 1,000 crore has been allocated for the financially challenged civic bus services BEST. The delay in BMC elections, according to BJP-led Maharashtra government officials, is due to pending petitions concerning OBC quotas in the Supreme Court.