In Bengaluru, new civic setup fails to unlock new revenue avenues
The Bruhat Bengaluru Mahanagara Palike (BBMP) is struggling to diversify its revenue streams following its split into five separate corporations. Despite high hopes for new income from advertisement revenue and property tax reforms, the corporations remain heavily reliant on traditional tax collection and have failed to implement effective new financial models.
Why it matters
The financial instability of these civic bodies threatens the delivery of essential urban infrastructure and public services in one of India's fastest-growing cities.
A problem that arose when the erstwhile Bruhat Bengaluru Mahanagara Palike (BBMP) was split into five corporations was the disparity in their revenue capacities, which had to be addressed. However, the new setup will step into another year with revenue capacities largely unchanged.
The Brand Bengaluru Committee had estimated that the North and West corporations would have the lowest property tax collections — ₹543 crore and ₹580 crore, respectively — which is the primary source of revenue for the corporations. Then Bengaluru Development Minister D.K. Shivakumar had said that the corporations would receive financial aid from the government.
“It will also be an opportunity for the appointed corporation commissioners to explore newer avenues for the civic body going forward,” Mr. Shivakumar had said. However, the corporations have largely failed to create newer revenue avenues, although they have strengthened property tax collection.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in