Pune Municipal Corporation Misses Revenue Target By Rs 3,400 Crore, Concerns Over Property Tax And Permissions Dip

Pune: The Pune Municipal Corporation (PMC) has fallen short of its revenue target for the financial year 2025–26. The municipal corporation earned around Rs 9,200 crore against a target of Rs 12,600 crore, leaving a gap of nearly Rs 3,400 crore.

Officials noticed that the biggest shortfall came from the building permissions department. It collected Rs 2,341 crore against a target of Rs 2,853 crore. This is a drop of about Rs 500 crore. In comparison, the department had exceeded its targets in the past three years.

According to PMC data, the department earned Rs 1,635 crore in 2022–23 against a target of Rs 1,400 crore. In 2023–24, it collected Rs 2,407 crore against a target of Rs 1,604 crore. In 2024–25, it earned Rs 2,601 crore against a target of Rs 2,493 crore. However, in 2025–26, the trend reversed.

City Engineer Anirudha Pawaskar said legal issues related to land measurement affected the process. These problems started around eight months ago. Due to this, many building proposals could not be cleared. A total of 3,984 proposals were approved during the year, which impacted revenue.

The property tax department also saw a decline in collections. It collected Rs 2,030 crore in 2025–26, down from Rs 2,346 crore in the previous year. This drop came despite an increase in the number of properties from 10.95 lakh to 11.33 lakh.

However, total property tax revenue reached Rs 2,985 crore after the PMC introduced an amnesty scheme. The scheme alone brought in Rs 955 crore from defaulters. Civic officials said tax recovery in newly merged areas remains a challenge. They also pointed to legal hurdles as a key reason for the overall shortfall.

Despite an increase in registered taxpayers, the revenue gap has raised concerns within the administration. Officials said efforts are ongoing to improve collections in the coming financial year.