BMC Budget 2025: Mumbai’s Mega Projects Spark Liquidity Concerns

Mumbai: The Brihanmumbai Municipal Corporation (BMC) is set to unveil its budget for 2025-26 on February 4, with major infrastructure projects worth Rs 1 lakh crore in progress. While these developments promise urban transformation, concerns over financial sustainability loom large.

Funding Challenges & Revenue Strategies

BMC’s fixed deposits have declined from Rs 91,690 crore in 2021-22 to Rs 81,000 crore as of December 2024. With Rs 59,954 crore allocated for 2024-25, nearly half will cover administrative and operational expenses. Officials highlight potential liquidity challenges in the coming years, necessitating new revenue strategies such as:

• Rescheduling property tax collection

• Imposing user levies on solid waste management

• Taxing commercial slums floor-wise (projected revenue: Rs 250 crore)

• An 8% water tax hike under consideration

  

Mega Projects and Cost Allocation

BMC has sanctioned projects worth Rs 68,441 crore in the past two years, including:

• Road Concreting: Rs 12,330 crore for 797 km of roads (Completion: 2025-27)

• Dahisar-Bhayandar Connector: Rs 1,998 crore, 5 km elevated road (Completion: 2028)

• Sewage Treatment Plants (STP): Rs 27,000 crore for 7 STPs treating 2,464 MLD sewage (Completion: 2024-28)

• Goregaon-Mulund Link Road Tunnel: Rs 6,322 crore, 12.2 km (Completion: 2028)

• Coastal Road (Versova to Dahisar): Rs 16,621 crore, 22.93 km (Completion: 2028)

• Eastern Freeway Extension: Rs 1,330 crore (Completion: 2027)

• Debris Processing Plants: Rs 2,000 crore (Operational)

  

Debate Over Financial Stability

BMC Commissioner Bhushan Gagrani assured efforts to strengthen revenue sources to meet future obligations. However, former Mayor Kishori Pednekar warned that liabilities exceeding funds could disrupt services. Civic activists criticized large-scale projects like the Coastal Road, arguing they should be state-led initiatives rather than BMC’s responsibility.

The Road Ahead

With declining bank deposits and growing financial commitments, Mumbai’s civic body faces a tough balancing act—developing much-needed infrastructure while maintaining financial stability. The upcoming budget will reveal how BMC plans to navigate these challenges.