In a concerning trend for the city’s municipal finances, the Bhopal Municipal Corporation’s primary revenue streams, including property tax, have witnessed a significant downturn in the current financial year (2025-26). Compared to the Rs 548 crore collected during the same period in FY 2024-25, this year’s collection stands at only Rs 517 crore, marking a shortfall of Rs 31 crore and a 6% overall decline. The decline is particularly alarming given that the administration had implemented a 10% hike in property tax and a 15% increase in water tax this year. The inability to even match last year’s figures, let alone reach the ambitious Rs 700 crore target, suggests a lack of administrative urgency in recovery efforts. A detailed analysis of the revenue streams shows that out of eight major tax categories, six have experienced a substantial downturn. While the corporation managed to see growth in minor segments like shop lease rent and solid waste management, these gains were insufficient to offset the larger losses. Specifically, shop lease rent saw an increase of Rs 8 crore, and solid waste management collections rose by Rs 1 crore to reach Rs 35 crore. Nevertheless, these areas remain secondary to the core property and water tax segments which continue to struggle. Beyond core taxes, the corporation collects 11 types of miscellaneous charges, which have also seen a sharp drop of Rs 29 crore.

 

By March 25 of the previous year, revenue from these sources was Rs 137 crore, which has fallen to Rs 108 crore this year. Only parking fees, entertainment tax, and ‘Housing for All’ segments recorded marginal growth, while all other departments reported substantial losses. A comparative analysis of municipal corporation revenue for 2024-25 and 2025-26 reveals that out of 8 items, 6 have recorded a decline while only 2 have shown growth. In terms of decline, Property Tax dropped from 258 Crore to 257 Crore, a decrease of 0.39%. Water User Charge fell from 83 crore to 82 crore, down by 1.21%. The steepest fall was seen in LR Mutation, which dropped from 28 lakh to 17 lakh, a massive decline of 39.28%. Sugam Mutation decreased from 6.2 crore to 5 Crore, recording a 19.35% drop. Commercial license revenue fell from 1.77 crore to 1.59 crore, a decline of 10.16%. sewerage charge also saw a minor dip from 3.1 crore to 3 crore, down by 0.33%. Solid Waste Management revenue grew from 34 crore to 35 crore, an increase of 2.94%. shop/lease rent recorded the highest growth, rising from 7 crore to 8 crore, up by 14.28%. Overall, the total income including other sources declined from 548 crore to 517 crore, a drop of 5.66%, reflecting a shortfall of approximately Rs 31 crore in the municipal corporation’s revenue for the year 2025-26.