Brihanmumbai Municipal Corporation Keeps Taxes Unchanged, Hikes Capex In Annual Budget
The headquarters of the Brihanmumbai Municipal Corporation. (Source: GPS/Flickr)

Brihanmumbai Municipal Corporation Keeps Taxes Unchanged, Hikes Capex In Annual Budget

India’s richest civic body kept taxes unchanged while increasing its capital expenditure in its annual budget.

The Brihanmumbai Municipal Corporation proposed an outlay of Rs 33,441.02 crore for the financial year 2020-21—a near 9 percent increase over the previous year. The civic body has, however, proposed a 5 percent increase in fees for various licences, such as birth certificates, market permits, among others.

“Despite municipal revenue coming under stress, capital expenditure has increased by 36 percent (to Rs 14,637.76 crore),” Municipal Commissioner Praveen Pardeshi said while presenting the budget estimate today. “Further, revenue expenditure has been reduced from Rs 19,205 crore to Rs 18,796 crore due to cost-cuts in revenue expenditure and establishment cost.”

That comes as the ongoing slowdown in the real estate sector has put the BMC’s collections from one of its biggest sources of income under stress. Revenue collections from development plan fees and premiums, Pardeshi said, are estimated to drop by nearly 15 percent.

The Maharashtra government’s decision to exempt property tax from residential buildings with carpet area of up to 500 sqft has resulted in a reduction of about Rs 335 crore in annual demand, the commissioner said. “Particular emphasis has been given on collection of at least 10 percent of Rs 15,000 crore which is outstanding property tax.”


  • To simplify property tax collection and make it transparent, new rules for the years between FY21 and FY26 are being formed.
  • The BMC expects to earn an additional revenue of Rs 600 crore by regularising unauthorised use of flower bed, deck, lofts etc. Under this policy, compounding fee of 15 percent of ready reckoner value of authorised use of floor-space index will be levied. Builders/housing societies/building owners can be the beneficiaries of this policy.
  • The budget estimate has allocated Rs 3,248.73 crore for the implementation of a development plan.
  • A provision of Rs 2,000 crore has been proposed for the coastal road project in FY21.
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