BMC presents ₹59,954.75 cr budget with focus on health, infra, cleanliness

The health budget is pegged at Rs.1716.85 crore against Rs.1384.04 crore last year. For education, Rs.3497.82 crore has been proposed and Rs.1,930 crore for the beautification work

Mumbai: The Brihanmumbai Municipal Corporation (BMC) commissioner and administrator, Iqbal Singh Chahal on Friday presented the largest-ever budget of ₹59,954.75 crore for FY 2024-25.

Brihanmumbai Municipal Corporation (BMC) (File Photo)

“The budget estimates for the financial year 2024-25 are proposed at Rs.59,954.75 crore, which exceeds the budget estimates of 2022-23, that is Rs.54,256.07 crore, by 10.5 per cent,” the budget document read.

Chahal’s budget speech began with an emphasis on the deep-cleaning drive, beautification project, the chief minister’s clean Mumbai helpline, infrastructure projects, and zero prescription policy for health care services.

The BMC had in November last year announced a ‘zero prescription policy’, which means that patients will not have to purchase a single medicine from drug stores outside civic hospitals.

No new taxes have been announced. The revenue from property tax was revised to Rs.4,500 crore from last year’s Rs.6,000 crore.

This year’s budget also shows an increasing trend of capital expenditure against revenue expenditure to emphasise infrastructure projects for better facilities and modernised services to the citizens. The expenditure on capital projects is expected to reach Rs.25,315.81 crore from Rs.13,957.65 crore.

The civic body has also proposed transportation and commercial on the checkpoints under BMC justification at Dahisar and Mankhurd. A sizeable grant of ₹928.65 crore is proposed for grant to BEST undertaking.

A total budgetary provision of Rs. 2,900 crore is proposed for the coastal road in this year’s budget against the budgetary provision of Rs.3,000 crore last year. For the Goregaon-Mulund Link Road, a budgetary provision of Rs.1,870 has been proposed against last year’s Rs.1,160 crore.

Rs.3,200 crore has been proposed for roads and highways against Rs.2,561.98 crore last year. A budgetary provision for Mumbai Coastal Road (Versova Interchange to Dahisar Interchange) and GMLR connector has been proposed at Rs.2,960 crore against Rs.2,774.20 crore last year.

The health budget is pegged at Rs.1716.85 crore against Rs.1384.04 crore last year. For education, Rs.3497.82 crore has been proposed and Rs.1,930 crore for the beautification work.

The BMC, for the first time, is in the process of developing a climate budget and will be publishing for the first time the Green budget book (climate budget) for the city this year.

A slew of measures have been recommended in the budget to augment revenue. One such measure is the demand for an Floor Space Index (FSI) premium from the state government.

The BMC has insisted that it should get a 75% share as against 25% in the revenue received on account of premium charges for an additional 0.50FSI and a 70% share as against 50% in premium on account of fungible FSI.

The BMC recorded a dip in its financial reserves. According to the budget document, the financial reserves on December 31, 2023, stood at Rs.84,824 crore, against financial reserves on December 31, 2022, which was Rs.88,216 crore. The BMC has also proposed to draw Rs.11,627 crore from its fixed deposits to fund ongoing infrastructure projects.

It is the third time since 1985 that an administrator presented the budget in the absence of the deliberative wing, comprising sitting corporators, as their five-year term ended on the night of March 7, 2022.