BMC Budget 2025 highlights: Slum biz tax, parking, zoo upgrade, and more

BMC unveils record ₹74,427 crore Budget for FY 2025-26, a 14% increase from last year

 

The Brihanmumbai Municipal Corporation (BMC) has presented its highest-ever budget of ₹74,427 crore for the financial year 2025-26 (FY26), marking a 14.19 per cent increase from the previous year’s ₹65,180.79 crore. 

 

The budget, presented on Tuesday at the BMC headquarters, was submitted by Additional Municipal Commissioners to BMC Commissioner Bhushan Gagrani, who serves as the state-appointed administrator of the civic body.

 

Despite rising expenditures on infrastructure, healthcare, education, and environmental initiatives, the BMC has focused on revenue generation through new policies, such as taxing commercial units in slums, auctions of civic plots, and increased FSI premiums.

 

 

New revenue measures

 

1. Property tax on commercial units in slums 

 

BMC plans to assess 50,000 commercial establishments in slums for property tax, which is expected to generate ₹350 crore in revenue. The civic body has stated that the funds will be used to improve services and infrastructure in these areas.

 

2. Monetisation of BMC land 

 

To increase non-tax revenue, BMC has decided to auction civic plots at 100 per cent Annual Statement of Rates (ASR). The first such auction will be held for a plot at Asphalt Plant, Worli, allowing private developers to lease and develop it.

 

3. Increased share in additional FSI premium

 

The BMC’s share in additional Floor Space Index (FSI) premiums has been raised from 25 per cent to 50 per cent, which is expected to contribute significantly to revenue generation.

New taxes and charges proposed

 

4. Solid waste management (SWM) user charges  In an effort to make waste management financially sustainable, the BMC has proposed introducing user charges for SWM services. While a final decision is pending legal review, the municipal corporation is currently assessing how best to implement these charges. The existing SWM Sanitation and Cleanliness Bylaws of 2006 may be amended to facilitate this move.

 

Infrastructure and transportation

 

₹5,100 crore allocated for road and traffic infrastructure. This also includes efforts to complete Vikhroli Bridge, Nahur Bridge (Phase-1), Gokhale Bridge, and Carnac Bridge before the monsoon. As well as, Belasis Bridge which is targeted for early completion before April 2026. Other projects are:

 

Dahisar check naka commercial hub, which involves lodging facilities for passengers arriving from other states, as well as a star-category hotel, commercial offices, and 1,424 motor vehicle parking spaces.

 

Multilevel parking facilities: Work orders will be issued for a 194-capacity parking lot near Flora Fountain. 640 four-wheeler and 112 two-wheeler spaces will be planned at the Worli Engineering Hub. The plans include overall parking provision for 834 vehicles with a ₹200 crore budget.

 

Healthcare and public welfare

 

Expansion of Hinduhridaysamrat Balasaheb Thackeray - Aapla Dawakhana initiative: 250 existing clinics, including 33 polyclinics and diagnostic centres, have benefited nine million patients, BMC said. Expanding this, 25 new clinics and three physiotherapy centres will be set up.

 

Tourism boost in Koliwada

 

To boost tourism, BMC has allocated ₹25 crore for developing Koliwadas (traditional fishing villages).

 

Green and environmental initiatives

 

Zoo expansion project: 10-acre land acquisition for Veermata Jijabai Bhosale Botanical Udyan & Zoo. New enclosures for giraffes, zebras, white lions, jaguars, and a bird exhibit at a satellite facility in Mulund.

 

Anandvan Green Belt: Development along Sanjay Gandhi National Park’s periphery (Borivali to Goregaon) with tree plantations, bio-toilets, and natural stone pathways.

 

Mumbai public park: A 290-acre public park combining 120.12-acre Mahalaxmi Race Course land and 170-acre reclaimed land from the Mumbai Coastal Road (South) Project.

 

BMC plot auctions: Policy decision to auction BMC plots under 100 per cent Annual Statement of Rates (ASR). Asphalt Plant at Worli to be leased for private development.

 

Education and social initiatives

 

Education has been allocated ₹3,955.64 crore, an increase of ₹630 crore from last year. Speaking on school infrastructure and mid-day meal schemes, BMC announced the following:

 

Mission SAMPURN: Focus on school infrastructure, admissions, merit, productivity, universalisation, responsibility, nutrition, and health.

 

Supplementary nutrition programme: BMC schools (Nursery to Class 10) to provide Purak Poshan Aahar (Supplementary Nutrition) alongside the mid-day meal scheme.

 

BEST & public transport

 

Despite high funding requirements, the BMC has continued its financial support to the BEST Undertaking, allocating ₹1,000 crore this year. Since 2012-13, BMC has provided ₹11,304.59 crore in assistance to BEST.

 

Additionally, ₹992 crore has been sanctioned by the 15th Finance Commission for the purchase of electric buses, of which ₹493.38 crore has already been received and disbursed.

 

BMC’s revenue projections and financial outlook

 

As of December 2024, the BMC has recorded revenue earnings of ₹28,308 crore. By the end of the current financial year (March 31, 2025), the civic authorities estimate total earnings to reach ₹40,693 crore.

 

For FY26, the BMC has projected revenue earnings of ₹43,159 crore, reflecting an effort to stabilise its financial position through the proposed revenue-generating measures.