BMC budget outlay lower by Rs 26cr; ‘won’t impact regular works’

Bhubaneswar: Revenue earned by Bhubaneswar Municipal Corporation (BMC) this year increased by Rs 50 crore to Rs 280 crore compared to last year, though its budget allocation for 2025-26 was marginally lower compared to 2024-25.
The civic body has allocated Rs 1,001 crore for 2025-26 financial year, compared to Rs 1,027 crore for FY 2024-25. BMC officials said the lower outlay will not impact its regular business. “The marginal drop in outlay is because many projects taken up in the last budget are still going on, and the provision of new projects in the upcoming financial year is very less,” clarified a BMC officer.
In the last budget, the BMC allocated funds for four urban wellness centres and 10 more kalyan mandaps. For the first time last year, the corporation’s budget allocation surpassed Rs 1,000 crore.
BMC has allocated Rs 150 crore for sanitation in 2025-26, which includes handling daily municipal solid waste, establishing new wealth centres (where waste is converted into compost), and modernising waste collection and segregation. Last year, it had earmarked Rs 128 crore for sanitation. Last year, the civic body allocated Rs 1 crore to every ward, while this time, the funds are yet to be allocated. After discussions in the corporation meeting, the ward fund provision will be made, BMC officials said.
For the construction of roads, creating a new road network, beautification, repair of roads and construction of new drains, a total of Rs 300 crore has been earmarked, while last year’s allocation was Rs 407 crore. At the budget meeting on Friday, decisions were taken to upgrade the Chandrasekharpur kalyan mandap, renovate the travellers’ lodge, and construct an auditorium in Saheed Nagar.
BMC officials said total tax revenue, whose major component is holding tax, this year is Rs 135 crore and non-tax revenue is Rs 145 crore.
In FY 2023-24, the BMC made a budgetary allocation of Rs 690 crore. The lion’s share of it was allocated for various construction and for creation of new infrastructure and maintenance. It set aside Rs 235 crore for all kinds of civil construction, which was 34% of the total allocation. Sanitation, another important component, received an allocation of Rs 141 crore.