MUMBAI: The budget of the Brihanmumbai Municipal Corporation (BMC) is expected to touch a whopping ₹80,000 crore this year, surpassing last year’s outlay and marking the highest-ever budget to be presented in Asia’s richest municipal corporation on Wednesday. Following the end of the four-year administrator’s rule in the civic body, the standing committee will once again present the budget.
The jump in the budget this year is largely attributed to an additional revenue of ₹800 crore in property tax collection. “The budget increases every year by at least 5%, so it is a given that it will touch the ₹80,000 mark,” said a senior civic official, who clarified that no new taxes would be announced this year.
Among the key infrastructure priorities listed in the budget are the Goregaon-Mulund Link Road, the northern extension of the Coastal Road from Versova to Bhayandar and the long-pending Gargai Dam project to augment Mumbai’s water supply. While capital expenditure is being directed towards these major works, revenue expenditure has also risen due to higher inflows from property taxes, aided by automatic revisions linked to ready reckoner rates and stricter recovery mechanisms enforced by the BMC this year. The civic body is also getting a lot of premium from real estate.
The issue of water tariffs has emerged as a parallel debate within the civic administration. Mumbai Mayor Ritu Tawde had earlier announced that water tariffs would be kept stable by suspending the annual increase of up to 8%. However, there is reported unease within sections of the municipal administration over the move. Officials point out that freezing water tariffs could result in an annual revenue loss of around ₹100 crore for the civic body.
A senior official from the hydraulic department told HT that a proposal went to the standing committee after administrative approval. “Now this will not happen, as the annual water charges hike has not been approved,” he said. This indicates that the proposed hike will not be implemented this year.
A resolution to increase water bills by a maximum of 8% annually was first passed by the standing committee in 2012, following which charges were revised every June. However, since 2022, post-pandemic and in the run-up to the municipal elections, water tariffs have not been increased. Ahead of the BMC elections, the ruling Mahayuti alliance had promised not to increase water charges for five years. In her first address after assuming office, Tawde reiterated her commitment to stabilising water tariffs and formally announced a moratorium on the annual hike.
This year’s budget will also place significant emphasis on the Gargai Dam project, a ₹3,000-crore initiative aimed at strengthening Mumbai’s long-term water security. The project involves the construction of a 69-metre-high roller-compacted concrete dam in Palghar district that is designed to augment the city’s water supply by 440 to 450 million litres per day. It also includes a tunnel of 1.6 km to 2.5 km linking the dam to the Modak Sagar reservoir. The BMC is targeting completion by 2029, positioning the project as a crucial measure to mitigate future water shortages in Mumbai.