BMC gets 12% boost

Brihanmumbai Municipal Corporation

Brihanmumbai Municipal Corporation  

Budget estimates stand at ₹30,692.59 cr.

The Brihanmumbai Municipal Corporation (BMC) on Monday presented a budget of ₹30,692.59 crore, which was an increase of 12.60% over the last fiscal.

This was the fourth time that Municipal Commissioner Ajoy Mehta was presenting the budget before the standing committee. In its budget 2019-20, the civic body has set aside 20% more funds for capital expenditure despite a drop in revenue income from property tax and development plan departments. The civic body also has to make provision for implementing the 7th Pay Commission.

Mr. Mehta, in his two-hour budget speech, elaborated on the civic body’s financial health and future plans. He attributed the hike to big-ticket projects such as reconstruction of hospitals, and construction of the coastal road and sewage treatment plants.


For the first time, Mr. Mehta had slashed the budget from ₹37,052 crore in 2016-17 to ₹25,151 crore in 2017-18 to make it more realistic. He said, “The reforms implemented to prepare a transparent and realistic budget… are now showing a positive impact.” He pointed out that before 2016-17, the BMC spent only 65% of the budget, but now expects to spend 86% by March 31.

The BMC has made a provision of ₹11,480 crore for capital expenditure. Mr. Mehta said while capital expenditure is rising (32.31% to 37.41%), revenue expenditure is decreasing (67.69% to 62.59%). This fiscal, the BMC had reported a drop in actual revenue expenditure (money spent on establishment costs) from ₹17,703 crore to ₹15,717 crore.

Taking a hit

The BMC had estimated it will earn ₹5,206 crore from property tax, but it is now hoping to recover only ₹5,016 crore. The BMC is likely to suffer a loss of ₹998.33 crore owing to the slowdown in the real estate sector and the new Development Control Regulations, which has changed the BMC’s share in premium rates on fungible FSI and premium-paid FSI.

For implementation of the 7th Pay Commission, the BMC wants to bring about administrative reforms and curtail establishment expenditure. Mr. Mehta said, “This does not mean there will be retrenchment, but rationalisation of staff, redeployment and a different strategy for recruitment.”

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Printable version | Jun 6, 2020 2:50:46 AM |

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