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BMC Presents INR 74,427 Cr Budget For 2025-26: Here Are Key Highlights To Remember

This is the third consecutive budget presented under the rule of the administrator since March 7, 2022. Despite governance changes, municipal projects will continue without disruption.

BMC Presents INR 74,427 Cr Budget For 2025-26: Here Are Key Highlights To Remember
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The Brihanmumbai Municipal Corporation (BMC) has presented its highest budget to date for the fiscal year 2025–26. The budget totals INR 74,427.41 crore. This is the third consecutive budget presented under the rule of the administrator since March 7, 2022. Despite governance changes, municipal projects will continue without disruption. 

Here are the key highlights from the budget:

1. Road & Traffic

- BMC has allocated INR 5,100 crore to the road and traffic department of the city.  

- The Nariman Point to Worli Coastal Road has received INR 1,516.31 crore. This project will improve connectivity along the western coastline. 

- The Goregaon-Mulund Link Road (GMLR) has been allocated INR 1,958.73 crore. This 12-kilometre stretch will help connect eastern and western suburbs.

- The Versova Dahisar Coastal Road has been allotted INR 4,000 crore to further expand the city's coastal road network.

- To improve road conditions, INR 3,111.07 crore has been set aside for road concretisation across Mumbai.

2. Urban Development Projects

- The waste disposal project has been granted INR 5,545 crore to modernise waste management systems.

- The water tunnel project has received INR 4,000 crore for a stable water supply.

- The river rejuvenation project has been allocated INR 900 crore to restore the city’s rivers.

- Transportation and Commercial Hub at Dahisar Check Naka will include commercial office space, 456 bus parking spaces, 1,424 motor vehicle parking spaces and 131 rooms.

- Work orders have been issued for 194 capacity multilevel car parking near Apsara Pen Shop, Flora Fountain (Hutatma Chowk) in A Ward. Also, tender process for 640 four wheelers and 112 two wheeler space at Worli Engineering Hub in G/S ward and contractor has been appointed. In future the parking space available will be for 834 vehicles. The budget provision for the proposed work is INR 200 crore.

3. Healthcare and Social Initiatives

- The civic body has set aside INR 7,380.43 crore for healthcare this year. The funds will focus on healthcare, illness prevention, hospital renovation, and increased medical services.

- BMC to expand free healthcare network with 25 new aapla dawakhanas and three physiotherapy centres.

- The renovation of Sion Hospital has been granted INR 245 crore to upgrade facilities.

- The budget also includes ₹1,300 crore for redeveloping solid waste management workers’ colonies.

4. BEST Bus Services

- Public transport has also been a key focus. The BMC has allocated INR 1,000 crore to support the BEST bus service.

- INR 128.65 crore will be used to purchase and install 2,000 electric buses.

5. New Revenue Streams and Taxation Plans

- A new tax will be levied on commercial properties in slum areas, expected to generate INR 350 crore. The BMC estimates that 50,000 of Mumbai’s 250,000 slums are used for commercial purposes, including shops, warehouses, and hotels. A legal review is currently underway on this matter. 

- The BMC will also auction plots based on the 100% Annual Statement of Rates (ASR) in order to raise money from its properties. The BMC will put up for auction the asphalt plant site in Worli on a lease basis for private developers to develop as part of this project.

- Solid Waste Management (SWM) user charges will be introduced.

6. Education Sector 

- Education has received a significant budget increase. The allocation for 2025–26 is INR 3,955.64 crore, an increase of INR 630 crore from the previous year.

- BMC allocated INR 12 crore to Mumbai schools for upgradation of furniture with 24,170 desks and 39,178 benches.

- The STEM Robotics lab will be introduced in schools.

- A science park pilot project will be set up in two school buildings.

- The Mission SAMPURN program will be launched to enhance school infrastructure, admissions, merit, productivity, and student nutrition.

- The Purak Poshan Aahar program will continue to provide midday meals and supplementary nutrition to students.

- Dedicated English language labs are also planned.

- A cyber literacy plan will be introduced to educate students on safe internet use. 

7. Financial Challenges

- The BMC has faced financial challenges in funding key projects. By March 31, 2025, the civic body expects to generate INR 40,693 crore in revenue. By December 2024, it had already earned INR 28,308 crore. Despite these earnings, additional funding is needed.

- To deal with this, the BMC plans to use its Fixed Deposits (FDs) through an Internal Temporary Transfer (ITT). The 2023–24 budget initially proposed raising INR 6,364.48 crore through ITT, but financial conditions at the time did not require it. However, rising costs now make it necessary to utilise these funds for projects.

8Water supply:

The civic body will provide INR 100 crore for a 200 MLD Desalination Plant for enhanced water supply in the area. 

9Environment:

It has allocated INR 113 crore to the environment department, providing financial assistance for its several initiatives.

10. Expenditure and Revenue

- Property Tax Revenue:

2024–25 revised estimate: INR 6,200 crore

2025–26 estimate: INR 5,200 crore.

- Water and Sewage Charges:

2024–25 revised estimate: INR 2,131.98 crore

Revenue collected by December 31, 2024: ₹1,141.56 crore.

2025–26 estimate: INR 2,363.15 crore.

- Revenue Expenditure:

2024–25 revised estimate: INR 26,835.25 crore

Expenditure by December 31, 2024: INR 15,912.37 crore

2025–26 estimate: INR 31,204.53 crore.

- Capital Expenditure:

2024–25 revised estimate: INR 37,332.08 crore.

Expenditure by December 31, 2024: INR 18,991.65 crore

2025–26 estimate: INR 43,162.23 crore.

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