BMC's Capex Model Boosts Mumbai, But Revenue Strain Looms for New Leadership
Business
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Moneycontrol•14-01-2026, 16:02
BMC's Capex Model Boosts Mumbai, But Revenue Strain Looms for New Leadership
- •BMC's capital expenditure (capex) now accounts for nearly 60% of its total outlay, one of the highest ratios in India.
- •Total spending has surged from Rs 20,000 crore in 2017-18 to an estimated Rs 74,367 crore in 2025-26, driven by large infrastructure investments.
- •Investments include roads, coastal infrastructure, flood mitigation, transport, and health facilities, reshaping Mumbai's civic balance sheet.
- •Revenue growth has lagged expenditure, increasing from Rs 22,400 crore in 2018-19 to Rs 43,160 crore in 2025-26, creating fiscal pressure.
- •Property tax contributes only 12% of BMC's revenue, significantly lower than peers, with heavy reliance on state transfers and octroi compensation.
Why It Matters: BMC's infrastructure-led growth faces sustainability challenges due to lagging revenue, requiring new fiscal strategies.
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