Uttar Pradesh municipal corporations' revenue jumps 46% to ₹4,586 crore

Indicating the strengthening financial muscle of urban local bodies (ULB), 17 municipal corporations in Uttar Pradesh have clocked combined revenue of ₹4,586 crore in 2024-25 (FY25), posting a 46 per cent rise year-on-year (Y-o-Y).

 

These 17 municipal corporations had a consolidated tax and non-tax kitty of about ₹3,140 crore in FY24.

 

Improved tax collection, plugging leakages, and expanding the ambit of municipal corporations have resulted in this jump in their revenue.

 

While higher revenue collection makes a municipal body self-reliant, it also leads to better urban amenities in their respective civic areas.

 

Lucknow topped the list with about ₹1,355 crore, followed by Kanpur's ₹721 crore and Ghaziabad's ₹610 crore.

 

The tax revenue of these 17 municipal corporations increased from ₹2,235 crore in FY24 to ₹2,870 crore in FY25, a rise of 28 per cent. Likewise, their non-tax revenue increased from about ₹905 crore in FY24 to ₹1,715 crore in FY25, registering a 90 per cent increase.

 

“The more revenue local bodies earn, the more central grants they can get to improve infrastructure and civic services in their respective areas,” Amrit Abhijat, the state's urban development principal secretary said.

 

Meanwhile, all the 762 ULBs in UP posted a consolidated revenue of ₹5,568 crore in FY25 against ₹3,853 crore in FY24, a growth rate of almost 45 per cent.

 

These 762 ULBs comprise the municipal corporations, municipal councils, and the nagar panchayats. Mathura topped the list of UP urban local bodies, posting 106 per cent revenue growth, followed by Jhansi 85 per cent, and Ghaziabad 72 per cent.

 

These 762 ULBs posted a total income of about ₹2,494 crore in FY22, ₹2,915 crore in FY23, ₹3,853 crore in FY24, and ₹5,568 crore in FY25.

 

With growing financial independence, ULBs get more central assistance including the National Clean Air Programme (NCAP), and grants from the 15th Finance Commission.

 

Earlier this year, the Yogi Adityanath-led government had cleared the municipal bond proposal for three cities -- Varanasi, Prayagraj, and Agra.

 

They will join Lucknow and Ghaziabad, which have already floated their muni bonds.