Mumbai muncipality's budget is bigger than these states — how India’s largest civic body earns and spends

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Voting for 29 municipal corporations, including the BMC, in Maharashtra is scheduled for 15 January. More than 15,000 candidates are in the fray.

In Brihanmumbai Municipal Corporation (BMC) alone, 1,700 candidates are contesting in 227 wards in the contest to control India's richest civic body with over 74,000 crore budget for 2025-26 fiscal.

On February 4, 2025, the BMC presented its budget of 74,427 crore for 2025-26. This was its largest-ever budget, up about 14 per cent from the previous year’s estimates.

In absence of an elected house, the civic body has been under an administrator since the term of the corporators ended on March 7, 2022.

The February budget comprised 43,166 crore as the capital expenditure, which is 58 per cent of the total budget.

Exceeds total budget of many states

The BMC’s 74,427 crore budget — though municipal — is larger than the entire budgets of Goa, Sikkim and Tripura were state governments are responsible for services like health, education, police, infrastructure and welfare.

In Goa, for example, the overall budget for 2025-26 was 28,162 crore, while it was 39,842 crore for Arunachal Pradesh and 58,514 crore for Himachal Pradesh, 16,196 crore total expenditures forecast (state budget 2025-26) for Sikkim and 31,412 crore state expenditure estimate (2025-26) for Tripura.

The Municipal Corporation of Delhi (MCD) proposed a 16,530 crore budget for 2026-27, focusing on sanitation, health, and infrastructure with no new taxes. Bengaluru's civic body, the Bruhat Bengaluru Mahanagara Palike (BBMP), passed a budget of around 19,930 crore for 2025-26.

The total budget of Ranchi Municipality is less than one percent of the total budget of the BMC.

The BMC, also known as the Municipal Corporation of Greater Mumbai (MCGM) is the governing civic body of Mumbai, the capital city of Maharashtra.

Established under the Bombay Municipal Corporation Act of 1888, the BMC is responsible for the civic infrastructure and administration of the city and some suburbs.

The BMC was formed with the functions of improving the infrastructure of the city.

BMC Earnings

BMC has seen a steady rise in earnings over the past few years, driven largely in the form of fees, taxes, development charges and investment income. The civic body’s revenue base and fixed deposits are significantly higher than most other municipalities, contributing to a far larger budget capacity.

BMC's revenue income, which forms a major part of its finances, for 2024-25 was revised from 35,749.03 crore to 40,693.85 crore in the last budget. The actual revenue collected until December 31, 2024, stood at 28,308.37 crore.

For 2025-26, the BMC estimated revenue income of about 43,159.40 crore, which is 20.73 per cent higher than the initial estimates for 2024-25.

The revenue from property tax has seen upward trend. In 2024-25, the initial budget estimate for property tax collection was 4,950 crore, but it was revised to 6,200 crore. For 2025-26, the budget estimate for property tax revenue was 5,200 crore.

BMC Spending

Development of infrastructure like roads, bridges, sewage lines, public health management, education, security, employees' wages and pensions constitutes the biggest chunk of the BMC's expenditure.

In 2024, BMC invested its 47 per cent revenue on infrastructure in Mumbai. In the last 10 years, it has spent 11,1600 crore on the city's upkeep and upgrade.

The 2025-26 budget for BMC saw an increase of 7,410 crore in revenue from last year. As many as 43,166 crore or 58% of the total budget capital expenditure

At least 10 per cent of the budget is for healthcare services. Among other things like schools and education-related infrastructure, the BMC decided to install 100 battery suction machines in its 24 wards.

From 2012-13 till January 2025, 11304.59 crore had been allocated to Brihanmumbai Electric Supply and Transport (BEST) as financial assistance.

A grant of 1000 crore was proposed for BEST for the 2025-26 period. An amount of 992 crore was sanctioned by the 15th Finance Commission for the purchase of electric buses. Out of this, 493.38 crore was already received and disbursed to BEST Undertaking.

(With agency inputs)

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