BMC budget today: All eyes on revision of property tax

At a time when BMC, India’s richest civic body, is facing a cash crunch, its budget is likely to prioritise expenditure in key areas such as health, education, and infrastructure-related development

Brihanmumbai Municipal Corporation’s (BMC) budget 2021-22 for Mumbai is scheduled to be presented before the standing committee of the BMC at 2pm Wednesday. The BMC is unlikely to introduce new taxes for Mumbaiites considering the pandemic and the civic polls scheduled next year. However, a revision of property tax in 2021, done every five years, is likely, according to civic officials.

Brihanmumbai Municipal Corporation office in Mumbai. (Anshuman Poyrekar/HT Photo)

The hike in property tax is unlikely to be announced in the budget, but in the months following the beginning of financial year 2021-22.

P Velrasu, additional municipal commissioner of the BMC, said, “Budget 2021’s outlay will be larger than the previous year, and even the capital expenditure be more than the current financial year.”

At a time when BMC, India’s richest civic body, is facing a cash crunch, its budget is likely to prioritise expenditure in key areas such as health, education, and infrastructure-related developments such as roads. Funds will be allotted for at least one new infrastructure project.

The Mumbai coastal road project is likely to receive a substantial amount of funds even this year. In the last fiscal, it was allocated ₹2,000 crore.

Velrasu added, “We are not introducing new taxes this year in the budget. However, during the year, a revision in the property tax is due.”

The BMC budget in ongoing fiscal 2019-2020 was pegged at ₹33,441.02 crores, which was 8.95% more than the previous year’s budget. Budget 2018-19 was pegged at ₹30,692.59 crores.