BBMP needs to find ways to mobilise more revenue, fix leakages: Economist

Bengaluru: Experts have outlined several expectations ahead of the civic body budget, emphasising the need for efficient fund utilisation and innovative strategies to mobilise additional revenue from alternative sources. The Bruhat Bengaluru Mahanagara Palike (BBMP) is poised to present its fifth budget without an elected council, anticipated to occur on Thursday. The outlay is projected to breach Rs 18,000 crore for the fiscal year 2025-26, compared to the Rs 13,116 crore of 2024-25.

Prof Krishna Raj from the Institute for Social and Economic Change (ISEC) noted that the increase in the outlay is driven by the city's expansion and the deteriorating state of its infrastructure. “The anticipated augmentation of grants from the state government for improving the road infrastructure and other essential civic amenities was expected in the state budget presented on March 7,” he said. He emphasised the importance of channelling these funds the right way. “Allocating these resources effectively to address fundamental issues is a crucial step towards achieving efficiency,” he asserted.

In addition to the development of signal-free corridors, Solid Waste Management is set to take a sizable portion of the budget. Starting in April, a user fee for garbage collection will also be implemented. “The introduction of a user fee for door-to-door collection aims to encourage behavioural change and promote waste segregation. However, it is the responsibility of the civic body to create a mechanism to ensure that the policy is justified,” he said.

Starting April 1, a user fee on Solid Waste Management will be introduced. Properties will be charged based on the built-up area and the corresponding waste it produces, a move that has drawn criticism from residents. Raj emphasised the need to take into account family size and demographics in this assessment. The budget is also projected to achieve record-high revenue from property taxes.

Recent data indicates that the BBMP has collected Rs 4,604 crore, which is 88.36 per cent of its target of Rs 5,210 crore. Krishna Raj argued that the funds are not being utilised effectively. “Honest taxpayers are often left with inadequate civic amenities, such as poor road conditions, insufficient street lighting, and inadequate garbage collection.

In contrast, large retail outlets are found to be chronic defaulters,” he stated. The BBMP must explore alternative revenue-generating methods. “Public assets are not being utilised efficiently. It has been proposed that these assets be leased out,” he suggested.