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Mumbai: Richest civic body now dependent on compensation
Updated On: 02 February, 2024 06:53 AM IST | Mumbai | Prajakta Kasale
With traditional revenue streams drying up, Mumbai’s civic body, the richest in India, faces budgetary challenges
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In the absence of new revenue sources, the Brihanmumbai Municipal Corporation will heavily depend on compensation from the state in lieu of the Octroi tax, in addition to fixed deposits, in the coming financial year. More than 70 per cent of income may come from these two sources.
Last year, the BMC presented a budget worth Rs 52,619 crore with estimated income from revenue sources, funds from fixed deposits, and interest on deposits. The primary revenue source was compensation from the state government after the Octroi tax was replaced with GST in June 2017. The BMC has been receiving this compensation with an eight per cent increase annually. For 2023-24, the income from compensation is Rs 12,344 crore, along with R18,746 crore from fixed deposits and Rs 1,707 from interest, making a total of Rs 32,797 crore, which is two-thirds of the entire budget.
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