The Brihanmumbai Municipal Corporation’s (BMC) fixed deposits (FDs) dropped by approximately Rs 3300 crore this fiscal year. According to a reply to a Right to Information (RTI) application filed by the Advocate Godfrey Pimenta, in the fiscal year 2023-2024, the civic body’s fixed deposits declined from Rs 82737.15 crore to Rs 79498.59 crore, a difference of Rs 3238.56 crore. This drop is not a one-off event, as the civic body’s FDs dropped by Rs 4000 crore in the fiscal year 2022-2023.
The BMC, the richest civic body in India, earns its income in the form of compensations in lieu of octroi (financial compensation provided by the central government to state governments and municipal corporations for the loss of revenue they incurred when octroi was abolished and integrated into the Goods and Services Tax regime), property taxes, interest on investments, etc.
The highest amount in fixed deposits — Rs 91,690.84 crores — was seen in the year 2021-2022. From that fiscal year to present, there has been a total drop of Rs 12,192.25 crore in the FDs. This year, the BMC’s presented budget was the highest ever at Rs 74,427.41 crore in early February with a focus on infrastructure projects, sustainable civic facilities, amongst others.
While introducing the budget for this fiscal year, Municipal Commissioner Bhushan Gagrani had said, “Rs 42230.78 crore is being held by the BMC in reserves towards committed liabilities in a position of trust.” Of the Rs 42230.78, a total of Rs 5160.22 goes from the fixed deposits.
Anil Galgali, an RTI activist, told mid-day, “FDs always drop or increase in a city like Mumbai where there are constant infrastructure projects happening. The more money BMC earns from multiple avenues, the more money in FDs, and as infra projects continue. There is always a point where the BMC witnesses a dip into its FD, it is just like a normal household budget cycle.”
Rs 74,427 cr
BMC budget for 2025-26
