Focus on completing ongoing infra projects; no increase in property, water taxes
Geetanjali Minhas | February 3, 2024 | Mumbai
India’s richest civic body, BrihanMumbai Municipal Corporation (BMC), has unveiled its budget of Rs. 59954.75 crore for 2024-2025, an increase of 10.50% over previous year budget of Rs 54256.07 crore.
Rs 7191.13 crore, that is, 12% of its total budget has been allocated to health and Rs 3497.82 crore towards primary education.
No new projects have been announced and no taxes have been levied on water and property in the year when general and state elections are due. Focus is on completing ongoing projects.
Total revenue income is estimated at Rs 35,749.03 crore. Total revenue expenditure is estimated at Rs 28,121.94 crore. Total capital expenditure is estimated at Rs 31774.59 crore and ratio of Capital Expenditure to Revenue Expenditure is 53:47. Surplus is Rs 58.22 crore.
Presenting his fourth consecutive budget and second as BMC administrator, BMC commissioner IS Chahal said on Friday, “In my last two years’ budget speech I specifically commented on environmental responsibility and efforts made by BMC to achieve the goal of Net Zero in near term. The Clean Air Mumbai initiative introduced in 2023-24 budget encompasses a seven-step strategy to tackle air pollution. Notable achievements include Mumbai Air Pollution Mitigation Plan, establishment of task forces at ward level and enforcement of construction guidelines. Sustainable transport measures involve procurement of electric BEST buses while waste management initiatives focus on waste to energy projects and installation of hazardous waste processing units.”
With focus on health, infrastructure, cleanliness and pollution control, highest allocation of budget of Rs 31,774.59 crore has been reserved for infrastructure projects like Coastal Road, Goregaon Mulund Link Road (GMLR) , STP (sewerage treatment project), concretization of roads, water and sewerage tunnels, Mithi River Projects, rejuvenation of rivers, Ashray Yojana , hospital development works and improvement of BMC services.
Rs 7011.41 Cr is allocated for DP Implementation sector budget. Rs 2900 Cr has been provisioned for Coastal Road, Rs 1130 Cr for Coastal Road( Versova- Dahisar), Rs 220 Cr for Dahisar – Bhayandar Link Road( Coastal Road last leg), Rs 1870 Cr for GMLR and Rs 4090 Cr for STP.
Chahal said BMC plans to open part of Coastal Road in February 2024 and complete the project work till May 2024.
Rs 3200 Cr has been provisioned for roads improvement and Rs 4830 Cr has been allocated towards Bridges Department including Coastal road last leg, mega projects 6 packages and GMLR.
BMC will implement Access Control Project on Western Express Highway and Eastern Express Highway. It has undertaken Rs 35955 .07 Cr project to construct Mumbai Coastal Road- Versova interchange to Dahisar interchange and GMLR in 6 packages- A, B, C, D E&F expected to be completed in 48 months.
For Storm Water Drains, out of total provision of Rs 1930 Cr, provision of Rs 1197.28 Cr is made for regular storm water drains, Rs 77.72 Cr for pumping station, Rs 357 Cr for rejuvenation of river and Rs 298 Cr for Mithi River.
For Mumbai Sewerage Disposal Project BMC has allocated Rs 5044.33 Cr, Rs 2400 Cr for Water Supply Project, Rs 1020 Cr for Hydraulic Engineer ,Rs 557 Cr for Sewerage Operation and Rs 422.28 Cr for Sewerage Project.
Due to cost escalation in capital projects till March 2024, BMC will borrow Rs 4794.48 Cr though internal temporary transfer and Rs 11627.54 Cr during FY 2024-25.
The Garden and Zoo Department is allocated Rs 252.80 Cr. To have a dedicated climate budget for the city and reduce emissions, BMC will start a Green Budget Book. The book will have initiatives like developing green gardens, implementing MCAP strategies and projects like Renewable Hybrid Energy and Waste to Energy Plants.
Over the last year, under the Mumbai Climate Action Plan, 7 step strategy for air pollution mitigation, BMC has established EV Cell, fire safety guidelines for EV charging infrastructure , urban greening initiatives, 600 TPD waste to energy project and Mulund dumpside remediation. Rs 80 Cr is allocated for washing 700 kms roads and footpath daily through 1000 dedicated staff, Rs 25 Cr for air pollution prevention, and Rs 230 Cr for SWM Mega project.
BMC has developed 61 SOP’s for deep cleaning drive started in December 2023 and Chief Ministers Clean Mumbai Helpline was launched on June 7, 2023 to redress sanitation complaints of citizens.
Under the Chief Minister’s Zero Prescription Policy to provide patients with necessary medicines from hospital itself and as per rate circular through BMC, Rs 500 Cr has been allocated for its implementation.
Rs 55 Cr has been allocated for redevelopment of Mahatma Jyotiba Phule Market (Crawford Market). BMC has also allocated Rs 180 Cr for redevelopment of open plot known as 600 tenements village Deonar in M/E Ward.
For infrastructure development of BEST, purchase of capital equipments, repayment of loan, new buses on wet lease basis, pay revision, day to day expenses, ITMS project, payment of Diwali bonus to employees , gratuity and dues of pensioners electricity dues etc, Rs 928.65 Cr has been provisioned. Out of total viability gap of Rs 2573 Cr for procurement of 2000 electric buses 75% and 25% will be funded by World Bank and GoM respectively and 5% by BMC.
For implementation of IT initiatives like MyBMC Building ID, IoT, Parking App, Online Booking System for Recreational Facilities etc, Rs 33.50 Cr is is allocated in revised estimates for 2023-24 and Rs 31.20 Cr in budgeted estimates for 2024-25.
Rs 111.83 Cr has been provisioned for financial assistance to Divyang’s above 18 years under Dharmaveer Anand Dighe Divyang Financial Assistance Scheme. Rs 1 lakh each financial assistance will be provided to 1600 self- help groups. For senior citizens,Virngula Kendra’s in 7 zones of Mumbai are planned to be set up. A provision of Rs 100 Cr has been set aside for implementation of Mumbai Mahila Suraksha Abhiyan.
In terms of revenue, BMC expects income from Grant in aid (Octroi Compensation) of Rs 13331.63 Cr, Rs 4950 Cr income from Property Tax,Rs 5800 Cr income from Development Planning, Rs 1923.19 Cr for water and sewerage charges , Rs.1248.93 Cr grant in aid from state government, Rs 1681.51 Cr as Supervision charges , Rs 2206.30 Cr as interest on investments and Rs 4607.47 Cr other charges.
In 2022-23, BMC has collected Property Tax of Rs 4994.15 Cr, in the manner as in 2019-20. In 2023-24 its Property Tax revenue collections estimated to be Rs 6000 Cr stand revised at Rs 4500 Cr (upto 31.1.24) after Supreme Court ruling against BMC property tax collection at Capital Value Base Tax System.
BMC’s revenue from DP Department saw an increase of Rs 1100 Cr against estimated Rs 4400 Cr to Rs 5500 Cr. Till 31.12.2023 it received income of Rs 4028.18 Cr. BMC received Rs 1460.83 Cr interest on its investments upto 31.12.23.
Additional measures of revenue generation
Additionally, for sustainability of its undergoing infrastructure projects, BMC intends to carry out financial study by appointing consultants. It has also raised a demand with the state government to get 75% share as against 25% share in revenue on account of premium charges for additional FSI and 70% share as against 50% in premium on account of fungible compensatory FSI.
To provide Integrated Bus Terminal and its integration with the rest of the transport modes like BEST, Metro and para transit systems and reduce traffic congestion in Mumbai , BMC proposes Transportation and Commercial Hub on Octroi Naka sites at Dahisar and Mankhurd with development of commercial, retail spaces, transit hotels , convention and exhibition centres etc and generate revenue and also revise sewerage and water charges.
It also proposes to generate revenue from BMC lease hold land / tenanted properties to the tune of Rs 10000 Cr annually and invite ward wise / zone wise bids for development of municipal tenanted properties to redevelop clusters on single multiple plots within cluster. In addition it proposes to explore auction of said plots for revenue generation.
For patients coming for treatment outside Maharashtra and those coming from outside of Mumbai, BMC has proposed a separate fee structure.
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