Mumbai’s 2025-26 Budget: Tax, Healthcare Focus

Mumbai’s Big Budget: Property Tax, Slums, and Healthcare

The Brihanmumbai Municipal Corporation (BMC) unveiled its budget for 2025-26 on Tuesday, with some key updates on property tax collections and plans for slum areas. The budget also focuses on important areas like healthcare and public transport.

Property Tax Collection Sees a Jump

The BMC reported collecting Rs 6,200 crore in property tax for the fiscal year 2024-25. This is higher than the earlier reported figure of Rs 5,229.20 crore. This increase comes after several adjustments and pending implementation of the Supreme Court’s decision on property tax. For the fiscal year 2024, the BMC issued property tax bills on a protective basis and collected Rs 2,860.60 crore against the total demand. Later, in September 2024, the BMC issued bills worth Rs 6,742.74 crore for fiscal 2025. By December 31, 2024, the BMC had received a total of Rs 5,229.20 crore, which included Rs 1,491.36 crore from the fiscal year 2024. Considering these figures, the actual revenue from property tax for 2025 was revised to Rs 6,200 crore. This is more than the initial estimate of Rs 4,950 crore. For the upcoming fiscal year 2025-26, the BMC has estimated property tax collections at Rs 5,200 crore.

Taxing Businesses in Slums to Improve Services

Mumbai has around 2.5 lakh slums, and the BMC estimates that about 50,000 of these (20%) are used for commercial purposes like small industries, shops, and even hotels. The BMC provides infrastructure to these businesses and is planning to collect property tax from them. The goal is to generate revenue for better services and infrastructure within the slum areas. The BMC expects to collect around Rs 350 crore from this initiative.

Key Highlights of the BMC Budget 2025-26

The BMC budget for 2025-26 is a big one, totaling Rs 74,427 crore. A key focus area is education. Commissioner Bhushan Gagrani presented the budget on Tuesday, outlining planned expenses for various departments. This includes healthcare initiatives like free treatment and grants for public transport. The budget also addresses property tax, especially in slum areas with commercial activity. The BMC expects to boost its revenue and improve living conditions with this budget.

Looking Forward

The BMC budget for 2025-26 suggests a focus on boosting revenue and improving services for Mumbai residents. The revised property tax collection figures and the plans for taxing commercial properties in slum areas are key steps toward achieving these goals.

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