Mumbai Civic Budget 2025: No New Taxes, 8% Hike In Water Charges Likely; Key Highlights Inside

Mumbai's municipal commissioner and administrator, Bhushan Gagrani, announced that there will be no new taxes in the upcoming civic budget. Even the proposed user fee for solid waste management will not be imposed. However, water charges are likely to increase by 8 per cent, according to a Hindustan Times (HT) report.

Speaking ahead of his first budget presentation scheduled for February 5, Gagrani shared these updates during an informal discussion with select media members. He confirmed that no new projects would be announced in the budget, focusing instead on ongoing initiatives and financial challenges, added the HT report.

Photo Credit: PTI

Record Budget For Infrastructure

The Brihanmumbai Municipal Corporation (BMC) has allocated Rs 31,775 crore for capital expenditure out of the Rs 59,955 crore budget for 2024-25. This is the highest-ever allocation, primarily for large infrastructure projects like the Coastal Road (61 per cent), bridges and flyovers (71 per cent), and road works (58 per cent).

"We will stagger capital works payments over the next 4-5 years to manage liquidity. While it won't be an issue immediately, challenges may arise in two years when all bills are due," Gagrani explained, as per the same report. He highlighted measures like auctioning BMC-owned plots, revising taxes, and redevelopment of buildings to generate revenue.

Coastal Road And Other Projects Updates

According to the HT report, Gagrani assured that the Coastal Road's promenade would be ready by May, with the gardens and other civil works expected to finish by December. He added that road concretisation, seen as a solution to Mumbai's pothole issues, would continue with stricter monitoring to ensure quality. "Utilities will not be allowed to dig up roads for 20 years after concretisation," he stated.

Challenges In Revenue Generation

The commissioner addressed delays in the auction of key plots. The Malabar Hill plot's auction was halted due to resistance from the BEST, which uses the land for a power receiving station. The CSMT plot's sale is pending as fishermen have requested its use, and the matter is under review by Chief Minister Devendra Fadnavis.

Tackling Mumbai AQI

When asked about Mumbai's air quality issues, Gagrani pointed to a mix of weather patterns and regulatory challenges, stating that there is no clear solution. He also acknowledged lapses in the monitoring of newly concretised roads, emphasising accountability measures for contractors and consultants.

As Gagrani prepares to present his first budget, the focus remains on improving infrastructure, addressing financial pressures, and ensuring quality standards in ongoing projects.