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The Brihanmumbai Municipal Corporation (BMC) recorded its highest-ever capital expenditure of INR 36,900 crore in FY 2024-25, reflecting a 57% surge from the previous year's outlay of INR 23,520 crore. This sharp jump in spending was primarily directed toward big-ticket infrastructure projects like the Goregaon-Mulund Link Road (GMLR), the Mumbai Coastal Road, and hospital redevelopment. Simultaneously, BMC's revenue income rose to a record INR 43,847 crore, backed by strong growth in property tax and development charges. Despite the robust financials, the civic body's fixed deposits saw a slight decline due to planned drawdowns to support its infrastructure commitments.
Earlier this week, the Brihanmumbai Municipal Corporation (BMC) reported a record capital expenditure of INR 36,900 crore for FY 2024-25 - the highest ever in its history. This marked a significant 57% increase over the previous financial year's outlay of INR 23,520 crore. In comparison, BMC's capital expenditure in 2020-21 stood at just INR 8,237 crore, indicating a consistent rise in infrastructure investment over the years. Advertisement
According to civic officials, the steep rise in spending was expected, especially since actual capital expenditure in the first nine months of FY 2024-25 had already exceeded the full-year figure for FY 2023-24. As of the end of December, BMC had already spent INR 18,991.65 crore on capital projects.
The increased outlay was directed toward several ongoing mega-infrastructure projects. Among them was INR 12,000 crore allocated for phased road concretization across the city. The Goregaon-Mulund Link Road (GMLR) twin tunnels, with a remaining project cost of INR 18,991.4 crore, are another major focus area. Other key investments include the Mumbai Coastal Road (North) project between Versova and Dahisar, pegged at INR 33,002 crore, the Mumbai Sewage Disposal Project (MSDP), and various hospital redevelopment initiatives.
The civic body is also investing INR 3,827.6 crore for constructing a 45-metre-wide elevated road from Link Road in Dahisar West (within BMC limits) to Mira-Bhayander West under the Mira-Bhayander Municipal Corporation (MBMC). This segment represents the final leg of the ambitious Mumbai Coastal Road.
Meanwhile, BMC's revenue income also hit an all-time high of INR 43,847 crore, up from INR 36,341 crore in the previous year. Officials said this growth was largely driven by two main sources: property tax collections and development plan (DP) charges. Property tax revenues increased to INR 7,015 crore from INR 6,473 crore, while income from DP charges rose from INR 6,300 crore to INR 9,722 crore.
Civic officials explained that the bump in property tax collection was partly due to delays in billing the previous year, leading to spillover collections in FY 2024-25. This correction helped inflate the overall revenue figures.
Despite the record earnings and spending, BMC's fixed deposit holdings have declined from INR 82,000 crore to INR 79,500 crore in the past year. Officials clarified that this drawdown was anticipated and intended to fund the city's expanding infrastructure needs. For context, BMC held INR 91,890 crore in FDs in 2021-22, largely due to the surge in premiums earned from development works. The FD value had previously climbed from INR 78,745 crore in 2020-21 to INR 91,660 crore the following year.
As of the end of March, BMC was also sanctioned to take an internal temporary transfer of INR 16,663.6 crore, a strategic move to manage cash flow amid large-scale infrastructure deployments.
While the drawdown in fixed deposits signals a shift towards resource utilisation, it also marks a deliberate and calibrated effort to channel funds into tangible civic outcomes. With revenue streams like property tax and DP charges showing healthy growth, BMC appears to be striking a balance between fiscal strength and infrastructure ambition, a model that could shape the financial planning of urban local bodies across India.
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