A sharp increase in property and water taxes has been proposed in the Vasai-Virar City Municipal Corporation’s budget for 2026–27, with the move being justified on the grounds of a widening revenue shortfall. In the ₹4,208 crore financial plan, property tax has been raised by 15%, while water tax has been doubled. The revised budget was presented by Municipal Commissioner Manoj Kumar Suryavanshi on Friday, and a substantial jump was also recorded over the previous year’s budget of ₹3,194.71 crore. At the same time, the capital grant was proposed to be increased to ₹642.61 crore from ₹320.78 crore, indicating that higher expenditure on development and infrastructure is being planned.
The tax revision has been linked by the administration to weaker-than-expected earnings during the current financial year. It was stated that anticipated collections from property tax, water charges and other civic revenue streams were not achieved. The increase in water tax, in particular, was attributed to the rising cost of water supply. A broader shortfall was also said to have been observed in urban planning fees, market charges and water dues. Although more than 80% of the previous year’s allocation had already been spent, expected revenue was not generated in proportion. As a result, a strategy of stronger revenue mobilisation has been adopted, and higher taxation has been introduced as an important measure to address the gap.
The budget has also been marked by political significance, because it has been discussed and approved by elected representatives for the first time in five years. Since the expiry of the earlier council’s term in 2020, previous budgets had been passed administratively. After the municipal elections held on March 9, the latest budget has now been formally debated within the elected body, and this change has been seen as a return to representative civic functioning.
At the standing committee meeting, several objections and concerns were raised over budget priorities. Expenditure on events such as the Mayor’s Marathon was questioned, and stationery-related spending was also described as excessive. In contrast, lower allocations for medicines and public health were pointed out with concern. It was suggested by members that essential public services should have been given stronger financial backing instead of non-core spending.
Attention was also drawn to unfinished or delayed civic works across the city. Problems in park development, drainage cleaning, mosquito-control measures and the poor upkeep of public toilets were highlighted. In addition, inadequate financial provision for tribal welfare and senior citizens was criticised. These concerns suggested that, despite the increase in the overall budget size, dissatisfaction has remained over how resources are being distributed.
Even with these criticisms, the administration has maintained that core services are being prioritised. According to the commissioner, major emphasis has been placed on healthcare, water supply, solid waste management, fire services, electricity systems, environmental conservation, roads, tourism and urban amenities. However, with taxes being increased and spending choices being questioned, the budget is likely to be closely watched in the coming months, especially to see whether the higher burden on citizens is matched by visible improvements in civic infrastructure and services.