The civic body had initially presented an annual budget with an outlay of Rs 11,885.57 crore but reduced the expenses due to a shortage in raising adequate revenue.
Credit: DH File Photo
Bengaluru: The Bruhat Bengaluru Mahanagara Palike (BBMP), responsible for the city’s upkeep, spent Rs 9,602.02 crore in the just-concluded financial year of 2023-24. The civic body had initially presented an annual budget with an outlay of Rs 11,885.57 crore but reduced the expenses due to a shortage in raising adequate revenue.
Officials noted that the expenditure was cut because the BBMP is subject to the Fiscal Responsibility and Budget Management Rules 2021, which prohibit the civic body from spending more than its revenues.
The BBMP’s revenue sources, primarily consisting of property tax, also include grants from the state and central governments.
For the new financial year, the BBMP has set the annual budget at Rs 12,371 crore. This amount was revised upward by Rs 745 crore after the government increased the BBMP’s budget. The civic body has adjusted its revenue estimates based on its yet-to-be-implemented advertisement policy, efforts to plug property tax leakages, and premium floor area ratio (FAR) changes.