BBMP Budget: ‘Doubled’ Expectations for Resource Mobilization

BBMP: Focus on Uncollected Money

Kere Manjunath ಕೆರೆ ಮಂಜುನಾಥ್

Bengaluru: The BBMP budget, which has set its sights on collecting more than ‘double’ money from resources that have not been collected for years, has set its sights on 50 percent more funds than last year.

In 2025-26, excluding state and central government grants and World Bank loans, the BBMP needs to collect ₹11,149.17 crore resources. In 2024-25, including central and state government grants, the amount collected was ₹10,318 crore. Therefore, it has decided to increase the existing collection.

Advertisement tax, e-account transfer, property rent, crematorium fees, OFC taxes are estimated to almost double from last year. These collections have achieved only half of the expected performance in previous years.

In addition to the state government's ₹4,000 crore grant, BBMP should provide ₹2,000 crore to the Special Purpose Vehicle (SPV) every year. It has been said that the money collected from the advertisement policy and premium FAR will be given, but there is no sign of it being collected.

₹1,360 crore should be provided this year for the 'Brand Bangalore' projects. This money should be transferred to escrow from the corporation's resources. If that is not possible, the Brand Bangalore projects will be stopped

₹3,500 crore will be spent on administration, staff expenses and solid waste management. About ₹2,000 crore will be spent on operations and maintenance. All the money coming from BBMP's property tax will be enough for this. Only when the other expected revenues come in will the ward-level works begin.

Discrimination in zones: Although the zone-wise budget, which had been said for some years, has not been presented, the details of how much money is being given to which zone and which program are explained in the book ‘Budget Estimates’. Almost all the works have been kept at the center, and Mahadevapura, which pays the highest tax, has been given less works.

‘No money for people’s works’

‘They are trying to reach the sky by showing huge projects. Last year’s budget of ₹13 thousand crore has not been reached. The same projects that were said last year have been said again. Even if the government gives more funds, it goes to the SPV. There is no money in the BBMP to carry out the necessary works for the people of the city,’ complained Padmanabhar Reddy, former leader of the BBMP ruling party.

Budget receipt figures

₹12,371.63 crore; 2024-25 budget presentation

₹13,408.13 crore; Revised Budget 2024-25

₹10,318.10 crore; Total receipts in 2024-25

=

₹19,930.64 crore; Expected receipts in 2025-26

₹7,000 crore; State government grant

₹542.44 crore; Revenue grant

₹498 crore; Central government grant

₹238.50 crore; National Disaster Fund

₹500 crore; World Bank loan

Grant cut for Kempegowda Jayanti

The BBMP budget has cut ₹50 lakh for Nadaprabhu Kempegowda Day celebrations. The grant, which was ₹3 crore last year, is ₹2.5 crore this year. The grant given to the Peanut Council has been reduced from ₹60 lakh to ₹50 lakh. A ₹20 lakh cut has also been made for Dasara festivals in the city.

How much money for which zone?

Zone; Money (in ₹ crores)

Central; ₹1,027.82

East; ₹420.44

West; ₹414.56

South; ₹410.37

Yelahanka; ₹134.64

Mahadevapura; ₹193.04

Bommanahalli; ₹210.76

R.R. Nagar; ₹188.57

Dasarahalli; 98.94

 Zoning, class unit rates abolished, single fee for all zones

Parking fees in buildings reduced!

Bengaluru: A draft notification has been issued to re-fix the fees for parking areas in residential and non-residential buildings under the BBMP jurisdiction.

The BBMP Chief Commissioner issued the draft notification on March 29, fixing the unit fee as per the Unit Area Value (UAV). Seven days have been given to file objections.

UAV was decided in the zoning classification as per the notification dated March 28, 2016. As per the tax formula, 50 percent of the unit rate of the zoning classification (A, B, C, D, E F) and class (RCC, Red Oxide, Sheet/Tile) was collected as parking fee. It has been revised to fix the same parking area rates for all zonal classifications and classes of properties.

If a covered and stilt parking area is used for own or rental purposes in residential buildings, the fee will be ₹2 per square foot. Non-residential buildings will have to pay ₹3 per square foot, the draft notification said.

According to the new UAV rates, if there is a parking area of ​​150 square feet, the residential area will have to pay ₹2 per square foot per month, which will be ₹300. As per the tax formula, ₹600 will have to be paid per year. The fee for non-residential buildings will be ₹1,125. This fee will be lower than what is being paid now, officials said.

Revised annual parking fee (tax formula)

Residential: 150 square feet (parking area) x ₹2 (per square foot) x 10 months = ₹3,000. 20% of this amount = ₹600

Non-residential: 150 sq ft (parking area) x ₹3 (per sq ft) x 10 months = ₹4,500. 25% of this amount = ₹1,125

How much is the savings?

If the owner of such a building is paying about ₹780 annually for a 150 sq ft parking area, then such a building owner will have to pay ₹600.

Fee reduction: Munish Moudgil

‘As per the notification dated March 28, 2016, those who have mentioned the parking area at the time of determining the property tax are already paying the fee in the property tax itself. This fee will be reduced as per the new revision,’ said Munish Moudgil, Special Commissioner, Revenue Department, BBMP.

‘Instead of charging more for parking, all buildings should be encouraged to have parking areas. Therefore, Deputy Chief Minister D.K. Shivakumar had suggested that the fee be reduced. Accordingly, a draft notification has been issued revising the fee.

‘The fee will be reduced by 30 percent for residential building owners who have already included their parking area in the property tax. There will be a 25 percent reduction for non-residential building owners. Overall, the BBMP will save about ₹5000 crore in property tax,’ he informed.

‘Those who have not included their parking area in the property tax can do so during this year’s property tax payment,’ he said.

Suspension of property tax payment

The BBMP’s property tax payment system has been suspended due to the inclusion of garbage management service fee in the property tax in the current financial year and revision in the parking fee.

On the website for paying property tax online, ‘Financial year 2024-25 has ended and the new financial year (2025-26) is starting. The online property tax payment system will be operational from 5 pm on April 3,’ the message has been published.

It was decided in the final days of the financial year to collect all the proposed fees through property tax. A new column needs to be created. Thus, the property tax system has been hampered, officials said.

E-Khata, New Khata suspended

The BBMP, which intends to collect fees and taxes more in the new financial year, has temporarily suspended the e-Khata and New Khata websites. ‘The software of the new Khata system has been temporarily suspended as maintenance work is being carried out on the property tax online system. The service will resume after April 4,’ it has been informed.

‘After entering all types of data in the e-Khata, New Khata system, a message is coming. If the software is not working or is temporarily blocked, no data should be allowed to be entered. This should have been informed earlier,’ said Chandrappa of Vijayanagar.