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Apr 06,2026 - Time 10.30Hrs
Nagpur: The Nagpur Municipal Corporation (NMC) has reported a significant drop in revenue collections after the close of the financial year 2025–26 on March 31, raising serious concerns within the civic administration about how the corporation will manage its finances amid rising expenditure and limited income sources.
The sharp decline in revenue has placed the administration and officials in a difficult position, as the civic body has already been struggling for several years to balance restricted income and increasing operational costs. With limited self-generated funds available for development projects, the municipal corporation is increasingly being forced to depend on government grants.
Former Municipal Commissioner and Administrator Abhijeet Chaudhari had initially presented a budget with an estimated income of Rs 4,702.75 crore for FY 2025–26. Later, his successor Vipin Itankar revised the estimate to Rs 5,401.62 crore. Officials had expected overall revenue recovery to reach 85–90% by the end of March, but the absence of new revenue sources has created a financial strain on the civic body.
Relief through GST compensation and Stamp Duty
Despite the revenue shortfall, the civic body received some relief through GST compensation, which amounted to Rs 1,767 crore during the year. In addition, the corporation is expected to receive Rs 123 crore through a 1% surcharge on stamp duty, for which the official communication was received by the corporation on March 31.
However, experts have criticised the civic administration for not making serious efforts to explore alternative revenue streams. According to them, the focus remains largely on increasing property tax or water charges, whereas exploring other revenue sources could potentially generate at least Rs 100 crore in additional income.
Department-wise revenue performance
Property Tax:
Property tax, traditionally considered the main revenue source for the municipal corporation, recorded a major shortfall. Out of approximately 6.5 lakh registered property holders in the city, nearly six lakh taxpayers paid around ₹240 crore by March 28. The collection is expected to reach Rs 265 crore by March 31, far below the target of Rs 350 crore set for the department.
Town Planning Department:
Over the past two years, the Town Planning Department has emerged as a stronger revenue contributor than property tax. However, against a target of Rs 500 crore, the department managed to collect only Rs 333 crore by March 31.
Water Supply Department:
The water supply scheme continues to operate at a loss. According to Superintending Engineer Shweta Banerjee, the department was assigned a target of ₹250 crore, out of which Rs 245 crore
was collected through water charges by the end of the financial year.
Hoardings and Licensing Department:
Revenue from licensing and renewal fees remained extremely low. The department generated only Rs 4.54 crore, largely due to the State Government cancelling the proposed hike in licence fees. The civic body had increased the fee from Rs 22 to Rs 131, but the government ordered that the old rates be continued, resulting in a sharp drop in revenue.
Fire Department:
The Fire Department generated Rs 18.84 crore in revenue. However, its income has been limited since the implementation of the Bombay High Court order dated October 8, 2015, which discontinued the fund earlier collected from high-rise buildings.
With the municipal corporation facing shrinking revenues and rising financial obligations, officials and experts say the administration must urgently identify new and sustainable revenue sources to ensure that civic services and development projects in Nagpur are not affected in the coming years.
