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The Bruhat Bengaluru Mahanagara Palike (BBMP), the administrative body responsible for the civic infrastructure and services of Bangalore, India, has set ambitious revenue targets for the coming years. A recent analysis by Janaagraha Centre for Citizenship and Democracy reveals that the BBMP's total receipts are projected to more than double in just two years, from ₹9,189 crore in the actuals of 2023-24 to an estimated ₹19,928 crore in the budget estimates for 2025-26. This represents a remarkable jump of 116%, indicating a significant shift in the BBMP's financial strategy and its ability to generate revenue. This impressive growth is attributed to a substantial increase in both the BBMP's Own Source Revenue (OSR) targets and the grants received from the State and Central governments. The OSR targets have seen a jump of 121% during the same period, highlighting the BBMP's efforts to enhance its own revenue-generating capabilities. Simultaneously, the State and Central government grants have also increased significantly, with a jump of 113%, reflecting the continued support from higher levels of government. The BBMP's ambitious revenue targets are underpinned by specific plans to boost revenue from various sources. The civic body has set a property tax target of ₹5716 crore for 2025-26, indicating a strong focus on maximizing revenue from property owners. Additionally, the BBMP plans to generate ₹2000 crore from Premium Floor Area Ratio (FAR), a mechanism that allows developers to build higher structures in exchange for a fee. Furthermore, the BBMP aims to collect ₹750 crore from advertising revenue, suggesting a concerted effort to tap into the advertising market. The budget also reflects a significant increase in State government grants, from ₹3000 crore in 2024-25 to ₹7000 crore in 2025-26, underscoring the State government's commitment to supporting the BBMP's development initiatives. The BBMP's success in revenue collection is attributed to several reforms implemented in recent years. The adoption of GIS-based technology has enabled the BBMP to improve its property tax collection efficiency and identify potential revenue sources. A One Time Settlement (OTS) scheme, which allowed property owners to clear their arrears by paying a reduced amount, led to the collection of ₹1277 crore in arrears. As a result of these efforts, the BBMP collected ₹4900 crore in property tax in 2024-25, maintaining its position as the city with the highest property tax collection in the country for the second consecutive year.
The BBMP plans to further enhance its property tax collection efficiency by integrating the GIS-based e-khata system with the Property Tax System, BESCOM (Bangalore Electricity Supply Company), BWSSB (Bangalore Water Supply and Sewerage Board), and KAVERI (Karnataka Valuation and E-Registration) databases. This integration is expected to automate the BBMP's property tax revision and monitoring processes, enabling the civic body to identify and collect additional property tax revenue. The BBMP estimates that this integration will bring in an additional property tax revenue of about ₹1000 crore. The big jump in non-tax revenue targets comes from Premium FAR and Advertising revenue under a new policy, adding to ₹2750 crore. However, it has to be noted that last year too, the civic body had expected ₹2200 crore from these two sources, but the new policies were not implemented . BBMP says all bottlenecks for their implementation have been cleared and will bring big returns to the civic body this year. While the BBMP's Own Source Revenue remains the largest contributor to its total receipts, its proportion has declined slightly from 54% in 2024-25 to 51% in 2025-26. Despite this slight decline, the OSR has grown by 84% in absolute numbers, indicating that the BBMP is still generating significant revenue from its own sources. However, the State and Central government grants have also shown a significant growth of 115% during the same period, and their share of total receipts has increased slightly to 44% in 2025-26 from 40% in 2024-25. This increase in the share of government grants signals an increased reliance on state funding, which raises concerns about the BBMP's fiscal sustainability. The Janaagraha Centre for Citizenship and Democracy has highlighted the growing reliance on state funding as a potential risk to the BBMP's long-term financial stability. Shobhana Subbu, Manager, Municipal Finance, Janaagraha Centre for Citizenship and Democracy, noted that while the BBMP has made significant efforts to diversify its revenue streams, the growing reliance on state funding continues to raise concerns about fiscal sustainability. She emphasized the need for further strengthening of the BBMP's sources of revenue to ensure its long-term financial health.
The BBMP's ambitious revenue targets and its efforts to diversify its revenue streams are commendable. The civic body's adoption of GIS-based technology, its implementation of the OTS scheme, and its plans to integrate various databases are all positive steps towards improving its revenue collection efficiency. However, the growing reliance on state funding is a cause for concern. The BBMP needs to focus on further strengthening its Own Source Revenue to reduce its dependence on government grants. This could involve exploring new revenue sources, such as user charges for certain services, or increasing the efficiency of existing revenue streams. The BBMP should also focus on improving its financial management practices to ensure that its resources are used efficiently and effectively. This could involve implementing better budgeting and accounting procedures, as well as improving its procurement processes. The Janaagraha Centre for Citizenship and Democracy's analysis provides valuable insights into the BBMP's financial performance. The analysis highlights the BBMP's strengths, such as its impressive revenue growth, but also points out its weaknesses, such as its growing reliance on state funding. The BBMP should take these insights into account as it develops its future financial strategies. The BBMP's financial health is crucial for the well-being of Bangalore. A financially sound BBMP is better equipped to provide essential services to its citizens, such as clean water, sanitation, and transportation. It is also better able to invest in infrastructure projects that will improve the quality of life in Bangalore. Therefore, it is essential that the BBMP continues to focus on improving its financial performance and ensuring its long-term financial sustainability. The BBMP's journey toward financial self-sufficiency is a continuous process that requires ongoing efforts and a commitment to sound financial management practices. By focusing on strengthening its Own Source Revenue, improving its financial management practices, and taking into account the insights provided by organizations such as the Janaagraha Centre for Citizenship and Democracy, the BBMP can ensure its long-term financial health and continue to provide essential services to the citizens of Bangalore.
Furthermore, the BBMP's revenue generation efforts should be aligned with the principles of sustainability. This means that the BBMP should avoid revenue-generating activities that could harm the environment or negatively impact the quality of life for its citizens. For example, the BBMP should carefully consider the environmental impact of its advertising policies and ensure that they do not promote products or services that are harmful to the environment. The BBMP should also prioritize investments in sustainable infrastructure projects, such as renewable energy sources and energy-efficient buildings. These investments can help to reduce the BBMP's carbon footprint and improve the long-term sustainability of Bangalore. The BBMP's revenue generation efforts should also be equitable. This means that the BBMP should ensure that its revenue policies do not disproportionately burden low-income residents or other vulnerable groups. For example, the BBMP should consider providing property tax exemptions or reductions for low-income homeowners. The BBMP should also ensure that its user charges for essential services are affordable for all residents. The BBMP's financial performance is not only important for the well-being of Bangalore, but also for the reputation of the city as a whole. A financially sound and well-managed BBMP can attract investment and create jobs, which can further boost the city's economy. A well-managed BBMP can also improve the city's image and attract tourists, which can generate additional revenue for the city. In conclusion, the BBMP's revenue targets represent a significant step forward in the civic body's efforts to improve its financial performance. However, the growing reliance on state funding is a cause for concern. The BBMP needs to focus on further strengthening its Own Source Revenue, improving its financial management practices, and aligning its revenue generation efforts with the principles of sustainability and equity. By doing so, the BBMP can ensure its long-term financial health and continue to provide essential services to the citizens of Bangalore. The continuous monitoring and evaluation of BBMP's financial strategies, coupled with adaptive measures based on performance data and stakeholder feedback, are critical for maintaining financial stability and achieving its ambitious goals. Transparency in financial dealings and open communication with the public can also enhance trust and encourage wider participation in revenue-generating initiatives. By prioritizing innovation and efficiency in its financial operations, the BBMP can strengthen its financial resilience and position itself for sustained growth and development in the years to come.
Source: BBMP’s revenue targets make a big leap, but reliance on State govt. grants remain high