PUNE: As the Pune Municipal Corporation tabled a Rs12,618 crore budget, an increase of Rs1,017 crore compared to the 2024-25 fiscal, financial experts have suggested that the administration explore alternative revenue-generating methods to achieve its target and bring down its over-dependence on traditional sources such as building permissions and property tax.
The civic body has estimated to collect Rs5,747 crore (around 45%) from these two primary income sources. Though it also relies on goods and services tax (GST), local body tax (LBT) and funds from state govt and Centre to meet its rising expenses, experts said these are not adequate.
Anant Sardeshmukh, former director general of MCCIA, said PMC has not done enough to monetise its properties. “We are yet to see effective management of properties and land parcels, which could fetch good returns. For this, the administration needs to come out with a policy, join hands with stakeholders and industries,” he said, adding lack of ideation has been a major challenge.
Other means of monetary gains such as hoardings and flexes and utilisation of open spaces can be tapped, Sardeshmukh said. “For instance, roadside parking is free, even for commercial vehicles. In other countries, these spaces have been brought under a monetisation policy. PMC can consider taking a similar step by charging a fee.”
Experts have also advised that PMC float municipal bonds, which may help it get money for infrastructure works.
Economist Abhay Tilak said there is a scope to improve non-tax revenue through properties. “The civic body should check how much revenue it generates from lease rent, if rent is collected regularly, and how much is pending. How many PMC-owned properties are non-utilised or under-utilised? There should be a plan in place. For example, old buildings of PMC schools, which are no longer used, can be used for commercial purpose.”
PMC needs to improve property tax collection by removing discrepancies, focusing on collection of dues, and bringing non-registered properties under the tax net, Tilak said. “With the introduction of GST, the civic body lost its earlier revenue sources like octroi and LBT. Hence, it should get its GST share from govt.”
Economist Pradip Apte emphasised that PMC should ensure proper utilisation of land and it should come out with a plan to collect charges for public services. According to civic sources, the administration’s income from renting out its properties is between Rs20 crore and Rs25 crore annually.
Former deputy mayor Aba Bagul said alternative income options may help the civic body not to bank only on property tax and building permissions. “We have already suggested that PMC join hands with Maha Metro to develop the properties and share the revenue. A significant portion of PMC land is being used for infrastructure projects, which can be brought under commercial use. The administration is lacking vision and plans,” Bagul said.
Former corporator Ujjwal Keskar said hoardings and advertisements have good potential for revenue generation, but there should be a proper policy.
