A heath check of the BMC budget: Will it be enough?

Earlier this year when the Brihanmumbai Municipal Corporation (BMC) announced its budget little did it know that the city would be struck by an epidemic that would bleed its resources. Actually, in its budget the BMC had proposed to strengthen the health infrastructure of the financial capital of India.

But the epidemic hit as no one would have imagined and reports now emerge of shortage of beds, PPE (personal protective equipment) and other essentials in city hospitals. Divya Rajagopal takes a look at the finances of India’s richest civic body.

As on Dec 31, 2019, reserves of BMC were at Rs. 78,669 cr (including reserves towards committed liabilities). Their revenue income is Rs. 23,846 cr, and revenue expenditure Rs. 19,240 cr, bringing their surplus at Rs. 4,606 cr.


For FY20-21, their total budget size was Rs. 33,441 cr.

BMC’s major expenditures
90% of the total revenue expenditure is on establishment expenses, operation and maintenance expenses. Their estimated revenue in FY21 stands at Rs. 28,448 cr

Top five sources of revenue

• Rs. 9,799 cr: GST (expected revenue)
• Rs. 3,880 cr: Receipts from development plan
• Rs. 6,769 cr: Property tax
• Rs. 1,828 cr: Interest on investment
• Rs. 1,536 cr: Water and sewerage charges

Health budget of BMC for FY21: Rs. 1,049 cr