Karnataka govt increases BBMP’s budget outlay by Rs 745 crore

Bengaluru: The state government recently approved the BBMP’s budget for the year 2024-25 by increasing the total outlay by a whopping Rs 745 crore. The civic body – which had presented a surplus budget in February this year – is destined to have a significant shortfall in its revenue with the government piling more work. 

In an order issued on March 12, the Urban Development department (UDD) has included at least nine new works taking the total outlay at Rs 13,114 crore. The department – which partly reports to Dy CM DK Shivakumar – has not cut down any works that were announced in the original budget. 

Additional funds have been provided towards solid waste management wing, upgradation of hospital infrastructure, improvements to Ulsoor lake and Russel Market etc. Funds have also been earmarked for the discretionary use of mayor and standing committees, anticipating elections to the BBMP, which might take place after the Lok Sabha polls. 

The government has also increased the allocation meant for the discretionary use of Bengaluru Development Minister, currently held by Shivakumar, from Rs 100 crore to a whopping Rs 250 crore. 

In the same order, the UDD has partially revised the BBMP’s 2023-24 budget by including two new works.

With the BBMP expecting an increase in revenue, which could come close to Rs 4,000 crore, the government has directed the civic body to provide Rs 20 crore for the development of Magadi fort by Nadaprabhu Kempegowda Authority, Rs 50 crore for Mahadevapura assembly constituency. 

Effect on the finances

In the 2024-25 budget, the BBMP had estimated Rs 4,470 crore from property tax, Rs 1,112 crore from other sources including advertisement fees and Rs 1,644 crore from the BBMP’s town planning wing. With the government increasing the total outlay by Rs 745 crore, it is likely to have a bearing on the BBMP’s finances. 

Speaking to DH, BBMP’s Chief Commissioner Tushar Girinath said the civic body had subdued its projections but hoped that they would increase its revenue in the new fiscal year.

“With the government introducing many new policies for Bengaluru, we will be able to meet the cost of new works from premium floor area ratio (FAR) as well as advertisement licenses etc,” he said.