Nagpur: The newly reconstituted Standing Committee on Saturday presented a Rs6,202.99-crore budget for 2026-27 that eschews fresh taxes, pivots towards women-centric welfare and infrastructure development, yet remains heavily dependent on transfers from the Centre and the state govt despite efforts to strengthen internal revenue.The budget marks the Standing Committee’s return to fiscal decision-making following the restoration of elected representation at NMC after four years of administrative rule.Standing Committee chairperson Shivani Dani Wakhare, a first-time corporator, tabled the revised budget at a special general body meeting, increasing the municipal outlay by Rs661.68 crore over the Rs5,541.31-crore proposal submitted by municipal commissioner Vipin Itankar in March. The revisions converted a projected deficit of Rs299.34 crore into a marginal closing surplus of Rs50.18 lakh.Revenue grants of Rs2,083.77 crore and capital grants of Rs1,529.60 crore together total Rs3,613.37 crore, accounting for 58.44% of the budget. NMC also expects Rs1,913.68 crore in GST compensation following the abolition of Local Body Tax (LBT), further reinforcing this dependence.Dani Wakhare proposed neither an increase in property tax rates nor any new levy, sparing residents an additional financial burden. Instead, the budget focuses on improving collections through monetisation initiatives and stricter enforcement.Among NMC’s own revenue sources, the Town Planning Department is projected to generate the highest receipts at Rs546 crore through development permissions, premiums, and provisions under the Unified Development Control and Promotion Regulations (UDCPR). Property tax collections are estimated at Rs359.02 crore, while water charges are expected to generate Rs285 crore.To boost non-tax revenue, the Standing Committee has proposed an Orange City Bottling Plant to package and market purified municipal water, advertisements on water bills, licence fees for commercial signboards and vehicle advertisements, hotel gradation linked to civic compliance, redevelopment of LED display systems, and creation of additional hawker zones. To improve property tax recovery, NMC plans to procure 100 point-of-sale machines for tax collectors, which are proposed to be placed at the disposal of corporators.The budget also proposes a ducting policy to revive and monetise the more than 1,000-km fibre optic cable network laid under the Smart City project in 2015. By maintaining, repairing, and expanding the underground duct network through private participation, NMC aims to create a non-tax revenue stream without any capital expenditure. Dani Wakhare said the initiative would streamline underground utilities, gradually eliminate overhead cable clutter, improve the city’s aesthetics, and generate recurring revenue.As a pilot project to address traffic congestion and indiscriminate parking, the civic body plans to introduce a pay-and-park system on five major roads. If successful, it will formulate a comprehensive parking policy for the city.Infrastructure and environmental projects continue to dominate expenditure. The Nag River Pollution Abatement Project has been allocated Rs1,926.99 crore, followed by Rs957.01 crore for the Pohra River Pollution Abatement Project and Rs900 crore for Cement Road Phase-V.Speaking to mediapersons, Dani Wakhare acknowledged that NMC’s own-source revenue remains limited and said the administration would focus on improving collections and ensuring effective implementation of budgetary provisions. Mayor Neeta Thakre and Dani Wakhare admitted the budget exercise had been delayed but expressed confidence that cooperation from corporators would ensure the timely execution of the proposed schemes and projects. The general body is scheduled to deliberate on the budget on June 29.The budget indicates that while NMC is attempting to diversify its revenue base through monetisation and better collections, its fiscal sustainability will continue to depend on sustained financial support from the Centre and the state govt.QUOTES“Priority has been accorded to citizens’ convenience while ensuring justice for the common people. At the same time, the budget has made an effort to uphold and enhance the city’s prestige.”— Neeta Thakre, Mayor“The ward development fund was Rs20 lakh and has been increased by only Rs5 lakh. Minor civic works and amenities for residents are undertaken through this fund, so a larger enhancement was expected.”— Sanjay Mahakalkar, Leader of Opposition
