This year, the Brihanmumbai Municipal Corporation (BMC) clearly has its sights set on the city’s infrastructure. For the first time ever, the corporation has linked all its reserves (in fixed deposits), totalling ₹52,635 crore, to infrastructure projects.

Last year, the BMC had borrowed around ₹3,000 crore from fixed deposits (FDs) towards its projects but ended up needing just ₹574 crore. This year, it plans to borrow ₹5,708 crore from FDs for its immediate needs, and has set aside ₹22,902 crore for committed liabilities.

“This will ensure reserves are funnelled towards capital expenditure to improve infrastructure for the citizens of Mumbai… A project takes four to five years to complete. Simply funding it from taxes is not possible,” said Municipal Commissioner Ajoy Mehta.

Asked why the BMC does not opt for a different financial model for funding big-ticket projects instead of dipping into its reserves, Mr. Mehta said, “This money is in fixed deposits that only fetch 6-7% interest. If we let this money be, and instead borrow from the market, we will have to pay an interest of 10%. That makes no sense. Besides, this is the people’s money and we will only use it for development work (capital expenditure).” And as to why a toll cannot be levied on the Coastal Road, he said, it is an essential amenity which should not be charged.

But it won’t quite be a free ride for citizens all the way. Although the budget has not hiked taxes, the BMC is planning to levy a service charge and entry fee on certain facilities. “This only includes new establishments such as the Malabar Hill viewing gallery, Shilpagram, and new enclosures inside the Byculla Zoo that are of international quality. It will also ensure that those genuinely interested in them visit these facilities.”

While Bharatiya Janata Party leader Manoj Kotak hailed the budget for being balanced, the Opposition did not see much hope in it. “It is an unrealistic budget. Despite making provisions year after year, certain projects such as water supply tunnels, redevelopment of Cooper Hospital and the BMC’s ambitious cycle track project have not taken off,” said leader of the Opposition Ravi Raja. “And how can they expect to make up for it by levying a service charge?” Samajwadi Party leader Rais Shaikh said the budget failed to bring relief to citizens. “The Shiv Sena-Bharatiya Janata Party have failed to fulfil their promise of property tax exemption for properties up to 500 sq ft/700 sq ft. We will oppose the service charge and entry fee proposal.”