PMC proposes bigger budget despite missing revenue target of previous year
Although PMC has fallen well short of its revenue target of ₹11,601 crore for 2024-25, the civic body has proposed a budget of ₹12,618 for 2025-26, an increase of ₹1,000 crore over last year’s budget
PUNE: Although the Pune Municipal Corporation (PMC) has fallen well short of its revenue target of ₹11,601 crore for the fiscal year 2024-25, the civic body has proposed a budget of ₹12,618 for the fiscal year 2025-26 which is an increase of ₹1,000 crore over last year’s budget.
The PMC managed to collect only ₹6,434 crore in revenue by January 2025 but expects to reach a maximum of ₹8,000 crore by the end of the financial year 2024-2025. Municipal commissioner Rajendra Bhosale said, “By the end of January, PMC had generated only 55% of the estimated revenue but expects an additional ₹1,500 crore in February and March, taking the total to around ₹8,000 crore. Meanwhile, PMC has already spent ₹4,413 crore and is projected to utilise up to 70% of the allocated budget by the end of March.”
Asked about the rationale behind increasing the budget for 2025-26 by ₹1,000 crore despite the revenue shortfall in 2024-25, Bhosale said that the Lok Sabha and state assembly elections affected revenue collection. He expressed confidence that better planning in the upcoming fiscal year would improve revenue generation.
Liabilities from public-private partnership (PPP) projects
The PMC has been executing several infrastructure projects under the PPP model, particularly roads and bridges. The civic body has a financial obligation of ₹2,288 crore towards private contractors, but this liability is not reflected in the 2025-26 budget.
Clarifying the payment structure, Bhosale said, “This amount is spread over the next 10 years, which means PMC will have to pay approximately ₹200 crore annually—an amount that is manageable given the overall budget.”
Bal Bharati-Paud Road project gets a push
With the court clearing the decks for the proposed Bal Bharati-Paud Road, the PMC has earmarked funds to commence work in the upcoming financial year.
Head of the PMC road department, Aniruddha Pawaskar, confirmed, “Since the legal obstacles have been cleared, we have allocated funds for the project and work will begin in the next fiscal year.”
While the civic body is planning ambitious projects, the revenue shortfall raises questions over its financial planning and execution.