In the BMC Budget 2024 speech, the civic body said that in the financial year 2023-24, revenue from property tax was estimated to Rs 6,000 crore which is revised to Rs 4,500 crore, a fall by Rs 1,500 crore
BMC Commissioner Dr Iqbal Singh Chahal on Friday presented the BMC Budget 2024. Pics/BMC
The Brihanmumbai Municipal Corporation (BMC), India's richest civic body, on Friday presented a Rs 59,954.75 crore budget for the year 2024-25. The BMC budget, this time estimates 10.5 per cent higher than the Rs 54,256.07 crore amount for 2023-24.
The civic administration's budget was presented by municipal commissioner Dr Iqbal Singh Chahal.
ADVERTISEMENT
The major sources from which estimation of revenue is made for the year 2024-25 are, Grant-in-aid on account of compensation in lieu of Octroi Rs 13,331.63 crore, income from Property Tax Rs 4,950 crore, income from D.P. Department Rs 5,800 crore, income from Interest on Investments Rs 2206.30 crore and income from Water and Sewerage Charges Rs 1,923.19 crore.
The BMC said, "In the financial year 2022-23, property tax has been collected in the same manner as in 2019-20 and the actual income from property tax was Rs 4,994.15 crore. In the financial year 2023-24, revenue from property tax was estimated to Rs 6,000 crore which is revised to Rs 4,500 crore, a fall by Rs 1,500 crore."
Drop in collection of Property Tax
The civic body said, the BMC had filed a petition Supreme Court against the decision passed by Bombay High Court against Capital Value Base Tax System in which the final verdict was against BMC. Capital value 2010 and 2015, rule no.20, 21, 22 have been quashed by the Supreme Court’s order. Hence, there is a drop in the collection of Property Tax, resulting in a decrease in BMC's income from Property Tax.
Meanwhile, the planned budget for fiscal year 2024-25 is Rs 59,954.75 crore, up 10.5 per cent from Rs 54,256.07 crore in 2022-23, according to the budget paper.
This is the second time since 1985 that the BMC administration has delivered the budget to an administrator, since its corporators' five-year terms had ended.
Pending dues from state government
The BMC said, the total outstanding dues from the offices of various departments of the state government on account of Grant-in-aid, Property Tax etc. under the jurisdiction of BMC amounts to Rs 8,936.64 crore as on 31st December 2023. This includes an amount of Rs 5,946.33 crore on account of grant-in-aid from the Education Department of the state government.
The civic body said that to recover/adjust these outstanding dues, vigorous follow-up is being done by concerned BMC departments by doing correspondence with various departments of State Government. Considering the overall development work underway in Mumbai city, huge funds are required and hence we request the State Government to positively consider our request for payment of dues owed by State Government to BMC.
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
