BBMP’s budget size may touch up to ₹20,000 crore, over 50% increase from the previous one

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The BBMP is yet to fix the date for the budget presentation.

The BBMP is yet to fix the date for the budget presentation.
| Photo Credit: file photo

The Bruhat Bengaluru Mahanagara Palike’s (BBMP) 2025-26 budget is expected to touch up to ₹20,000 crore, driven by enhanced State and Central grants and improved revenue collection, according to sources in the civic body’s Finance Department.

In the previous budget presented by the BBMP Special Commissioner (Finance), the outlay was ₹12,371 crore. However, upon approval by the State government, it was revised to ₹13,116 crore. The upcoming budget could see a significant increase of 50% to 52%, sources said. The BBMP is yet to fix the date for the budget presentation.

A source familiar with the budget preparation told The Hindu: “Grants from the Central and the State governments have significantly increased, boosting the overall budget size. It may reach ₹0,000 crore. Additionally, as of March 1, the BBMP has collected ₹4,541 crore in revenue from property tax, achieving 87.17% of its target”.

In the State Budget, the BBMP was allocated ₹7,000 crore, up from ₹3,000 crore. A major portion of these funds will go towards the Special Purpose Vehicle (SPV), with the Budget detailing the projects under this initiative. The BBMP is also set to receive a World Bank loan for its storm-water drain project.

However, according to another source, the State and the Union government funds alone will not suffice for key projects. A BBMP document estimates the total cost of these projects at ₹1 lakh crore.

For the two tunnel road projects, an estimated ₹40,000 crore is required, with the State government standing as the guarantor for ₹19,000 crore. The BBMP will need to secure the remaining funds through global bank loans.

The elevated corridor is estimated to cost ₹15,000 crore, while the BBMP’s share of the double-decker project is also ₹15,000 crore. Under the Sanchara Yuktha project, which involves road construction along buffer zones of storm-water drains, an estimated ₹3,000 crore will be required. The sky deck and white-topping projects are estimated at ₹1,000 crore and ₹6,000 crore, respectively.

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The Hindu