Kolkata budget focuses on essentials, revenue up 39%, tax collection rises 19%: Mayor Firhad Hakim | Watch

Kolkata Mayor Firhad Hakim presented the Kolkata Municipal Corporation (KMC) budget for 2025-26 on Thursday, emphasizing the need to focus on “absolute necessities” while avoiding “unnecessary expenses” and “unplanned expenditure.” The budget document stated that KMC’s revenue had increased by 39%, while tax collection had grown by 19%. The mayor highlighted that the allocations were aimed at maintaining essential services rather than funding new projects. Copies of the budget statement were circulated among councillors, KMC officials, and journalists.

The budget saw an increase in allocations for key civic services, including solid waste management, roads, drainage, and water supply. The solid waste management department’s budget was raised to ₹739.16 crore from ₹546.16 crore (revised estimate for 2024-25). The water supply budget increased to ₹454.90 crore from ₹221.43 crore, roads received ₹325.02 crore compared to ₹198.61 crore, and sewerage and drainage were allocated ₹352.57 crore, up from ₹266.09 crore. An official stated that these funds would be “just enough to run the services,” with limited scope for new projects.

A key focus of the budget is the development of a new landfill site in Dhapa, as the existing site is nearing capacity. The site is also used by the Bidhannagar Municipal Corporation and the New Town Kolkata Development Authority for waste disposal. KMC is reclaiming 180 acres in Dhapa from farmers who had been cultivating the land for decades. The civic body plans to use this land to set up waste-processing facilities and bridge the gap between waste generation and processing.

The budget also introduced fee revisions to boost revenue. The application fee for new building construction and the building permit fee were increased for the first time in nearly a decade. These fees are based on factors such as building height, road width, and total constructed area. KMC processes around 3,500 building permits annually. Additionally, trade license fees for 221 categories and certain amusement fees were raised. An official said that the revised fees are expected to generate additional revenue.

The budget document mentioned that KMC aims to maximize the use of state and central government funds to support civic services. An official acknowledged that while financial constraints remain, all departments would receive some funding from the state government, and central funds could be used for new projects. The budget also stressed the need to balance expenditure and revenue to ensure uninterrupted civic operations.