The rate of growth in property tax receipts for the Greater Hyderabad Municipal Corporation (GHMC) appears to have declined in the current year compared to the previous period.
In 2021-22, the GHMC received around ₹ 1,467 crore as tax revenue, which increased by 15% to ₹ 1,681 crore in the next financial year. In the year 2023-24, according to GHMC records, the tax revenue was ₹1,917 crore, a 14% increase over the previous financial year. However, for 2024-25, the revised tax receipt estimates are ₹ 1970 crore, which is only 3% over last year’s receipts. Budget estimates for 2025-26 cautiously peg tax receipts at close to ₹ 2,030 crore, continuing to grow at 3%.
GHMC officials attribute the higher revenue last year to the one-time settlement scheme announced in February, 2024. There has also been a big cut in estimates of town planning receipts, the second major revenue source of the corporation. The preliminary budget estimates for the year 2024-25 were estimated at ₹1,898 crore, up from actual receipts at ₹1,696 crore in 2023-24.
However, they had to be reduced to ₹ 1,001 crore in the revised budget estimates, a 47% decline, which is based on actual town planning user fees received till the end of October this year – ₹ 459 crore. Budget estimates for 2025–26 receipts from town planning are estimated at ₹1,201 crore – 17% higher than the revised estimate, but 29% lower than the receipts for 2023–24.
8,400 crore budget proposal of GHMC was approved by the standing committee on Monday. Out of which ₹4,000 crore is listed as revenue expenditure while ₹4,400 crore is listed as capital expenditure. Revenue saving is shown at ₹ 445 crore.
Instead of the ₹1,100 crore announced for the GHMC as part of the account budget vote earlier this year, the state government has allocated ₹2,654 crore under H-CITI, under the heads of capital grants and debt servicing compensation. Only the project, which was listed under capital grants. Of which only about 853 crores have been released till the end of October. With the remaining funds expected to be released before the end of the financial year, the revised budget estimate for 2024-25 has been fixed at Rs 3,379 crore and the budget estimate for the next year at Rs 3,800 crore.
According to the revised budget estimates, payments on account of loan repayments, including interest, are equal to ₹ 1,954 crore in the current financial year, while the estimate for 2025-26 is estimated at ₹ 1,933 crore. The corporation’s outstanding borrowings, as on October 1, 2024, stand at close to ₹ 6,130 crore.
published – December 24, 2024 at 09:30 hrs IST