BBMP’s revenue targets make a big leap, but reliance on State govt. grants remain high
The Hindu
BBMP's civic budget sees a 116% increase in total receipts, driven by property tax, grants, and new revenue policies.
The civic budget’s total receipts has more than doubled in just two years - ₹9,189 crore in 2023-24 (actuals) to ₹19,928 crore in 2025-26 (budget estimates) - a jump of 116%.
This is made possible by a significant jump in both the Bruhat Bengaluru Mahanagara Palike’s Own Source Revenue (OSR) targets that saw a jump by 121% and State and Central government grants that saw a jump by 113% during the same period, noted an analysis by Janaagraha Centre for Citizenship and Democracy.
BBMP has set an ambitious property tax target of ₹5716 crore, ₹2000 crore from Premium FAR, and ₹750 crore from advertising revenue for 2025-26. Compared year on year, the budget has also seen a big jump in State government grants from ₹3000 crore in 2024-25 to ₹7000 crore in 2025-26.
On the back of several reforms like adoption of GIS-based technology and a One Time Settlement (OTS), which led to collection of arrears of ₹1277 crore, BBMP collected ₹4900 crore property tax in 2024-25 and remained the city to collect highest property tax in the country for a second consecutive year.
“This year, integrating GIS-based e-khata system with the Property Tax System, BESCOM, BWSSB, and KAVERI databases, BBMP property tax revision and monitoring is being made automatic and GIS-based, expected to bring an additional property tax revenue of about ₹1000 crore,” the budget said.
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 BBMP’s Own Source Revenue remains the largest contributor, its proportion of total receipts declined from 54% (2024-25) to 51% (2025-26), even as it grew by 84% in absolute numbers. State and Central government grants have also shown a significant 115% growth during the same period, and its share of total receipts increased slightly to 44% (2025-26) from 40% (2024-25), signalling increased state reliance, Janaagraha said in its analysis of municipal finances.
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