VVMC Presents ₹4,209 Crore Budget With Proposed Hikes In Property And Water Tax For Residents

Vasai-Virar: On Monday, Municipal Commissioner Manoj Kumar Suryavanshi presented a robust budget for the Vasai-Virar City Municipal Corporation (VVMC). The presentation included the revised budget for 2025-26 at ₹3,194.71 crore and the original estimated budget for 2026-27, totaling ₹4,208.99 crore.

Budget Increases by Over ₹1,000 Crore, Ends with ₹2.12 Crore Surplus

The new budget reflects an increase of ₹1,014.28 crore compared to the previous year, concluding with a surplus of ₹2.12 crore. However, the ambitious spending comes with a catch for residents: proposed hikes in property and water taxes.

After five years of administrative rule following the expiration of the council’s term in 2020, this budget marks a return to political oversight. Following the municipal elections held on March 9, the budget was formally presented to the Standing Committee Chairman, Pravin Shetty. It will now undergo detailed discussion in the General Body meeting before final approval.

Tax Hikes Proposed to Cover Revenue Shortfall in Key Departments

Commissioner Suryavanshi justified the tax increases by citing a revenue shortfall in the current fiscal year. Despite spending over 80% of last year's funds, income from property tax, town planning fees, and market fees fell below expectations.

Notably, the Commissioner emphasized that the current water tax is insufficient to cover the operational costs of water supply schemes, leading to significant losses. To bridge this gap, a doubling of the water tax has been proposed.

Capital Grants Doubled, Focus on Infrastructure and Public Health

The 2026-27 budget aims to double capital grants from ₹320.78 crore to ₹642.61 crore. The Commissioner stated that the funds are strategically allocated toward, Infrastructure: Roads, electrical systems, and fire safety, Public Health Enhanced healthcare facilities and solid waste management, Environment: Conservation efforts and water supply schemes, Lifestyle & Growth: Tourism development, sports, and cultural facilities.

"The budget has been designed with a focus on health, infrastructure, and tourism to ensure the holistic development of the city," said Commissioner Manoj Kumar Suryavanshi. Detailed discussions on the budget provisions are scheduled for a Standing Committee meeting on March 16.

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