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The Brihanmumbai Municipal Corporation (BMC) is set to unveil its annual budget, focusing on large infrastructure and water projects. Major allocations will target Phase 2 of the Coastal Road, the Goregaon-Mulund Link Road (GMLR), the Gargai-Pinjal dam project, and wastewater treatment facilities. To fund these initiatives, the BMC is exploring property tax revisions and municipal bonds. With capital projects totaling nearly INR 1.5 lakh crore and only half of reserves available, the civic body aims to balance ambitious development goals with sustainable revenue sources for Mumbai's long-term urban growth.
The Brihanmumbai Municipal Corporation's annual budget will be presented to the mayor and the standing committee, marking the first such presentation since 2022. Last year, the BMC's total budget was INR 74,527 crore, with INR 43,000 crore allocated to capital expenditures mainly for infrastructure development. This year's budget will reflect the priorities of the ruling Mahayuti regime, comprising the Bharatiya Janata Party (BJP) and the Shiv Sena. Advertisement
Key infrastructure projects include Phase 2 of the Coastal Road, which has obtained all necessary approvals and will now proceed in full swing. This 25-kilometre stretch aims to connect Versova in the western suburbs to Bhayander in the Mumbai Metropolitan Region, with a targeted completion by 2029. The GMLR project will also see significant progress, with twin tunnel excavation starting soon. Its first phase is expected to be completed within this year, while the project's second phase is planned to integrate with the Coastal Road to ensure smoother traffic flow between eastern and western suburbs.
The Gargai-Pinjal dam project, conceived under the leadership of Chief Minister Devendra Fadnavis, is expected to receive special focus. No new water source has been created for Mumbai since 2014, making this initiative critical for augmenting the city's water supply. The budget will also allocate funds to expand wastewater treatment facilities and complete a major portion of ongoing road concreting works. Additionally, the environment and climate change department may receive allocations to establish a hyperlocal air quality monitoring system, while the Brihanmumbai Electricity Supply and Transport (BEST) undertaking could get funds to procure new buses.
To support these projects amid declining revenue, the BMC is considering a revision of property tax rates. The previous hike was in 2015, with the 2020 revision postponed due to the pandemic. Officials plan to review the property tax formula, including commercial units in slum areas, and restructure it where necessary. Municipal bonds are also being explored as a financing tool, especially since the Centre has introduced incentives for such bonds. The BMC aims to raise capital through these bonds to fund key projects and meet credit rating criteria.
Currently, BMC's infrastructure projects have a total capital size of nearly INR 1.5 lakh crore, almost double the civic body's reserve of INR 81,774 crore. Out of this, INR 39,500 crore is available for infrastructure after accounting for internal commitments like employee pensions, gratuities, provident fund contributions, and refundable contractor deposits. The gap between available funds and project size highlights a potential liquidity challenge, emphasizing the need for new revenue streams and market financing.
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