Mumbai: BMC Commissioner Bhushan Gagrani will present his first budget for the 2025-26 financial year on Tuesday, marking the third budget presented in the absence of an elected body. While new large-scale projects are unlikely, the focus will be on completing ongoing mega infrastructure initiatives.

Many of these projects are nearing completion and will continue to receive significant funding. The BMC will take a cautious approach, prioritizing fiscal health while managing the long-term impact of these projects. Key revenue sources, including premiums from redevelopment, property tax revisions, and auctioning prime plots, will be crucial for financing.

The BMC presented a budget of Rs 59,954 crore for the financial year 2024-25, marking a 13.9% increase over the previous year’s estimate. Of this, Rs 31,774 crore or 53% was allocated for capital expenditure. By December 31, 2024, nearly 52% of the capital expenditure had been utilised, with spending more on the Solid Waste Management (SWM), Coastal Road, bridges, roads, and the Water Supply Project (WSP).

The BMC has already undertaken major projects like Road Concretisation, the Upgradation of Seven Sewage Treatment Plants, and the Goregaon Mulund Link Road. Additionally, several key infrastructure projects, including the Vikhroli and Andheri's Gopal Krishna Gokhale Bridge, Bellasis Bridge in Grant Road, Carnac Bunder Bridge in South Mumbai, and the Sion Bridge, are set for completion this year. "As these projects are near completion, they will receive substantial funding in the upcoming budget," confirmed the official.

Over the past two years, the BMC has approved projects worth approximately Rs 1 lakh crore. While payments will begin in 2-3 years, avoiding immediate financial strain, officials have warned of potential liquidity challenges in the long term.

A senior official stressed the need to revise the city’s property tax, which has been unchanged for a decade. Property tax is a key revenue source for the civic body, typically revised every five years. The last increase was in 2015, and since then, BMC’s revenue generation has seen minimal growth.

In addition to property tax revision, the BMC is considering measures such as collecting property tax from commercial slums, imposing user fees for solid waste management, revising the redevelopment policy for leased and tenanted plots, and leasing out new plots.

An 8% hike in water tax is also under consideration. "With the upcoming BMC elections, securing state government approval for these reforms could prove challenging," he added.

Meanwhile, 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."

BMC's fixed deposits - Rs 81,000 crores

Mega projects underway :

Road Concretisation upto 800 kms : Rs 12,330 crores

Mumbai Coastal Road Project- Phase 2 - Versova to Dahisar : Rs 16,621 crores

Dahisar to Bhayandar Connector: Rs 1,998 crore

Upgradation of Sewage Treatment Plants (STP): Rs 27,000 crores

Goregaon-Mulund Link Road Tunnel: Rs 6322 crores

Eastern Freeway Extension (Orange Gate to Grant Road): Rs 1,330 crores

Yevai (Bhiwandi) to Mulund Water Tunnel: Rs 4,500 crores