Nagpur: Despite a widening revenue gap, the Nagpur Municipal Corporation (NMC) is set to table its revised 2024-25 budget and the upcoming 2025-26 financial plan without proposing any hikes in property or water taxes. Sources indicate that Municipal Commissioner Abhijeet Chaudhari is under pressure to maintain fiscal discipline while avoiding unpopular tax increases ahead of the civic elections.
As of March 7, NMC has managed to collect only ₹2,463.03 crore — just 44.25% of its ambitious ₹5,565.07 crore revenue target for 2024-25. The shortfall poses a significant challenge to the cash-strapped civic body, which is struggling to balance essential services with mounting financial constraints.
Revenue breakdown: Shortfalls across key departments
Gold Rate
Thursday 13 March 2025
A closer look at the revenue collection data reveals that NMC generated ₹804.03 crore through its own sources, including property tax, water charges, and town planning fees, while ₹1,659 crore came from government grants.
The Town Planning Department was the only bright spot, exceeding its ₹339 crore target by collecting ₹377.54 crore. However, other key revenue streams underperformed:
- Property Tax: ₹225.24 crore collected against a ₹350 crore target.
- Water Works: ₹192.35 crore recovered against ₹250 crore.
- Advertisements: ₹8.90 crore earned, far below the ₹25 crore target.
On the government side, NMC received ₹1,513 crore from the GST revenue-sharing scheme and ₹146 crore as a State grant. However, fund disbursement delays have crippled the civic body’s ability to execute crucial projects. Of the ₹1,987.60 crore sanctioned for infrastructure over three years, only ₹357.12 crore was released, with NMC receiving a mere ₹42.92 crore — just 2% of the total allocation.
Austerity measures amid funding crunch
Facing a financial crunch, NMC has sought ₹683.93 crore to complete pending projects and has initiated a ₹550 crore loan proposal for the Pora and Nag Rivers Pollution Abatement projects. In the meantime, the administration has imposed a 90% cap on major budget expenditures for 2024-25.
While core services such as water supply, sanitation, and road maintenance remain functional, non-essential projects — including beautification drives, Smart City initiatives, and minor road works — have been shelved. The financial strain has also led to delays in civic infrastructure projects, sparking concerns over long-term urban development.
The road ahead
As NMC prepares to present its budget by March-end, it faces a tough balancing act. With revenue collection efficiency lagging and government grants falling short, the civic body may be forced to implement stricter austerity measures. Without a significant boost in revenue recovery, Nagpur’s urban development and civic services could bear the brunt of the financial crisis in the months ahead.
