For the 2025-26 financial year, the BMC is set to adopt a cautious and strategic approach, prioritising the strengthening of its financial health while managing the long-term fiscal impact of ongoing mega projects. A key focus will be capitalising on promising revenue sources, notably premiums from redevelopment projects, revision in property tax and auctioning of prime plots.
Meanwhile, the civic body has received 2,700 suggestions and objections from citizens regarding the upcoming budget. A major portion of the responses emphasises the need to improve the deteriorating condition of BEST services.
The BMC budget for the financial year 2025-26 is scheduled to be presented in the first week of February. The budget is unlikely to feature any major new projects, as the civic body has already initiated several large-scale projects, including 700 km of road concretisation, the Goregaon-Mulund Link Road (GMLR), and the Versova-Dahisar-Bhayander Link Road (VDBLR). “The payments for these projects are staggered over the next 3-4 years, so there won’t be an immediate financial strain in the next two years. However, the corporation could face liquidity challenges after that,” officials warned.
The potential pressure on the BMC’s finances will require careful financial planning and preparation. “To address this, we are considering measures such as revision in property tax, imposing property tax for commercial slums, rescheduling premiums from the redevelopment of BMC properties, and auctioning of BMC plots to private parties,” an official added. However, with municipal elections likely to be held after a three-year delay, introducing new taxes in the upcoming budget may pose a significant challenge for the civic body, said the official.
As per property tax guidelines, the BMC is allowed to revise taxes every five years, but it refrained from raising the tax in 2020-21 due to the pandemic, following opposition from the standing committee and BMC house. The civic body had prepared a draft proposing a 16 percent increase in property tax.
Bhushan Gagrani, municipal commissioner said, “We are looking to strengthen our current revenue sources to increase funds, which are necessary to meet the future payment obligations for ongoing projects.”
Mega projects undertaken by BMC
Mumbai Coastal road project phase 2 – Versova to Dahisar: Rs. 16,621 crores.
Dahisar -Bhayander Link Road: Rs. 3,304 crores.
Upgradation of seven Sewage Treatment Plant – Rs. 27,000 crores
Concretisation of Roads – Rs. 12,000 crores
GMLR twin tunnels – Rs. 6,322 crores
Madh to Versova bridge – Rs. 1,800 crores
