A month later, the BMC is still waiting for permission from the state government. The BMC sent in a request two weeks ago and deputed an officer to get the sanction by filing all the required documents. But there is no response from the government. “The proposal is with the state cabinet. We are expecting an official nod today,” said Iqbal Singh Chahal, administrator of the BMC. Even if the BMC gets a nod, it will take time to re-issue the bills, creating a last-hour rush for citizens to pay and a challenge for civic officials to collect the amount before the March deadline. The delay will also affect the revenue model of the corporation.

In the 2023-24 budget, which was Rs 52,619 crore, the BMC proposed a 16 per cent hike in property tax to increase revenue and estimated that it would result in an additional R6,000 crore. The revenue model of the civic body has taken a hit by being unable to hike property tax for the last four years (since 2020-21), and the situation has become worse due to the 11-month delay in issuing bills this year. The delay has resulted in a loss worth crores of rupees which the BMC earns as interest, as only 20 per cent of the bill amount was collected till December 31, as compared to the same period last year.

Poll

Who will win the Punjab Elections?

BJP 32.86%

AAP 41.43%

INC 25.71%

Submit

View All In Poll

In 2022-23, the BMC was able to collect Rs 3,175 crore till December 31 despite a few months of delay in issuing the bills. This year only R638 crore was added to the BMC kitty during the same period. The corporation also reversed the water tax hike this year, which has also harmed its revenue structure.

Dec 30
Day BMC withdrew bills it had issued