BMC Budget 2025-26: Focus on Infrastructure and Potential Tax Revisions

As Mumbai braces for the Brihanmumbai Municipal Corporation (BMC) budget for 2025-26, infrastructure remains the key focus, with significant allocations expected for major projects such as the Mumbai Coastal Road (Phase 2) and the Goregaon-Mulund Link Road (GMLR).

This will be the third consecutive year that the budget is presented by the municipal commissioner, in the absence of an elected civic body.

Speaking at an event of the Indian Express, Municipal Commissioner Bhushan Gagrani shared his insights on a range of topics, from infrastructure development to tax revisions.

Infrastructure

Last year’s Rs 59,954 crore budget, with 53 per cent allocated to capital expenditure, saw substantial spending on roads, bridges, and the Mumbai Coastal Road.

With 52 per cent of the capital expenditure already utilised by December 2024, officials suggest continued investment in these crucial projects to ensure their timely completion.

The civic body’s Rs 30,000 crore sewage treatment project, which includes seven plants, is also expected to receive significant funding. Five of these plants are slated for completion by 2026, while the remaining two are expected to be operational by 2028.

Work on Phase 2 of the Mumbai Coastal Road, connecting Versova to Bhayander, is set to begin this year, while excavation for GMLR’s twin tunnels will start in August. The BMC also aims to achieve 70 per cent road concretisation in Mumbai by the end of 2025.

Taxes

The Commissioner also hinted at a possible revision of tax rates. Property tax, the BMC’s primary revenue source, was last revised in 2015 and has remained unchanged for nearly a decade.

Additionally, charges on water supply and other municipal services have remained static for the past four years.

With the civic body’s revenue not seeing significant growth, Gagrani stressed the need for revision, particularly to support water augmentation projects, following recent water cuts that disrupted supply.

Budget Utilisation

Among civic departments, solid waste management (SWM) recorded the highest budget utilisation (88.87 per cent), followed by Water Supply Projects (78.86 per cent) and bridges (70.96 per cent).

The Coastal Road project used 61.23 per cent of its allocated funds, while BEST (Brihanmumbai Electric Supply and Transport) utilised 79.39 per cent of its budget.

With Mumbai’s infrastructure ambitions at a crucial juncture, this year’s BMC budget is poised to be a decisive moment in shaping the city’s urban landscape.