Pune Municipal Budget 2024-25: Revenue, Spending and Development Priorities for Pune Elections
The Pune Municipal Corporation (PMC) presented a budget of ₹11,601 crore for the financial year 2024-25, marking a significant increase from the previous year’s ₹9,515 crore allocation. This expansion reflects the city’s growing infrastructure needs amid upcoming municipal elections, with political parties eyeing control over substantial civic funds.
Revenue Sources and Challenges
PMC’s revenue for 2024-25 relies heavily on property taxes, GST shares, building permissions, and development charges, alongside expected financial aid from state and central governments totaling around ₹2,000 crore. Property tax targets were set at approximately ₹2,847 crore, while GST contributions aimed for ₹2,702 crore. However, revenue from building permissions and development charges fell short, collecting only ₹1,312 crore against a ₹2,493 crore target by January, signaling a real estate slowdown. Despite this, the civic body avoided new tax hikes, focusing instead on recovering dues and boosting public-private partnerships.
The budget’s growth trajectory—from ₹8,592 crore in 2022-23 to crossing ₹10,000 crore in 2024-25—highlights Pune’s expanding urban footprint, now spanning 480 sq km with a population exceeding 52 lakh. Yet, challenges like the election code of conduct delayed fund utilization for voter-impacting projects last year, prompting a rush of approvals worth ₹400 crore for 220 proposals in gardens, roads, water supply, and merged villages ahead of polls.
Key Spending Allocations
A major chunk of the budget prioritizes infrastructure, with ₹1,200 crore earmarked for roadworks, including 33 missing links and 15 high-traffic roads plus 17 additional projects. Transport received ₹2,320 crore, or 20% of the total, with ₹567 crore for Pune Mahametro Public Mobility Limited (PMPML) bus services, mostly as viability gap funding to sustain operations. Additional funds supported e-bus procurement, last-mile metro connectivity, and EV charging under the 15th Finance Commission.
Water supply and sanitation remain critical, though specific allocations details emphasize ongoing management strategies. Solid waste management and green spaces also feature, responding to citizen demands in newly merged areas. The standing committee’s pre-election approvals underscore urgency in these sectors, speeding up tenders to avoid lapses before March 31 deadlines.
Development Priorities Amid Civic Elections
As PMC elections approach in January 2026—the first in nine years—control of the ₹12,618 crore 2025-26 budget (an increase of ₹1,017 crore over 2024-25) becomes a key battleground. Parties are vying for influence over funds to address long-standing issues in 34 merged villages, where residents face poor roads, erratic water, inadequate drainage, and missing streetlights. Population growth from 35.5 lakh in 2011 to over 52 lakh has strained services, particularly on city fringes.
Road infrastructure tops priorities, aiming to ease traffic congestion. Sustainable transport initiatives, like e-buses and metro links, signal a push towards greener mobility. Water bills are set to rise in the next budget without new taxes, balancing fiscal needs with resident affordability. Activists call for better fund utilization, citing poor road quality and last-minute spending rushes.
Civic works in merged villages offer electoral promise, with voters expecting elected representatives to deliver basics like sanitation and streetlights. The budget’s scale—from ₹1,681 crore in 2007-08—mirrors Pune’s transformation into Maharashtra’s largest municipal corporation by area. Pre-poll approvals of ₹400 crore for 220 projects indicate strategic spending to showcase progress.
Implications for Pune’s Future
The 2024-25 budget positions PMC to tackle urban challenges while navigating electoral dynamics. With real estate dips and dependency on government aid, efficient revenue collection and project execution will be crucial. Elections could shift priorities towards neglected peripheries, ensuring the ₹11,601 crore translates into tangible development. Residents anticipate accountable governance, demanding quality over quantity in civic investments.
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