Sat Mar 29 15:59:01 UTC 2025: ## Bengaluru’s BBMP Budget Doubles, Driven by Tax and Revenue Targets

**Bengaluru, March 29, 2025** – The Bruhat Bengaluru Mahanagara Palike (BBMP) has unveiled an ambitious budget for 2025-26, projecting a total receipt of ₹19,928 crore, more than double the ₹9,189 crore collected in 2023-24. This significant 116% increase is fueled by a substantial rise in both own source revenue (OSR) and state and central government grants.

The budget targets ₹5,716 crore from property tax, a figure boosted by the implementation of a GIS-based e-khata system expected to yield an additional ₹1,000 crore. Furthermore, ₹2,000 crore is projected from Premium Floor Area Ratio (FAR) and ₹750 crore from advertising revenue, reflecting new policies aimed at diversifying revenue streams. The BBMP collected a record ₹4,900 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.

State government grants have seen a dramatic increase from ₹3,000 crore in 2024-25 to ₹7,000 crore in 2025-26. While BBMP’s OSR remains the largest revenue contributor, its proportion of total receipts has slightly decreased from 54% to 51%, even with an 84% absolute growth. Conversely, the share of state and central grants has risen from 40% to 44%, raising concerns about fiscal sustainability, according to Janaagraha Centre for Citizenship and Democracy.

Janaagraha highlights the BBMP’s efforts to diversify revenue, but emphasizes the growing reliance on state funding. Shobhana Subbu of Janaagraha notes the need for further strengthening of the BBMP’s own revenue sources to ensure long-term financial stability. The success of the ambitious non-tax revenue targets hinges on the successful implementation of the new advertisement and FAR policies, which faced setbacks last year. The BBMP claims all obstacles to implementation have now been cleared.

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