The Brihanmumbai Municipal Corporation (BMC) has experienced a decline in its fixed deposits (FDs) after over a decade of consistent growth. According to information obtained under the Right to Information (RTI) Act, the BMC’s FDs peaked at 91,690 crore in 2021-22 but have since dropped by 12,192 crore over the past three years, reaching 79,498 crore in 2024-25. Despite this decline, the BMC remains the country’s richest municipal corporation, with a budget of 74,427 crore presented for 2025-26.
The decline in FDs is attributed to the BMC’s spending on large infrastructure projects, such as the Coastal Road (south) project, upgradation of sewerage treatment plants, and road concretisation works. Additionally, the BMC has provided funds to the Mumbai Metropolitan Region Development Authority (MMRDA) and the Brihanmumbai Electric Supply and Transport (BEST) undertaking. For instance, an FD of 949 crore with the State Bank of India was liquidated to be given to the MMRDA, while 250 crore and 113 crore were withdrawn from the SBI to provide subsidies to the BEST.
Experts have expressed concerns about the BMC’s financial management, citing the need for careful assessment of the extent of reserves required for emergencies. Milind Mhaske, CEO of the NGO Praja, suggested that locking up large sums in FDs serves little purpose and that these funds could be better utilized for public works. Former municipal commissioner Subodh Kumar warned that the BMC’s reserves could get quickly depleted if it continues to sanction new projects at the current pace, given its mounting obligations of nearly 2 lakh crore.
The BMC’s 2025-26 budget estimates a revenue income of 43,159 crore, which is about 21% higher than the 2024-25 estimates. The main contributors to this revenue are compensation in lieu of octroi, development plan fees and premiums, and property tax. However, with the BMC’s liabilities at nearly 2 lakh crore, there are concerns about the sustainability of its financial management and the potential exhaustion of its funds if it continues to take up new projects without adequate financial planning.