Mumbai, May 14: Praja Foundation on Thursday, May 14, released a report on Fiscal Empowerment of City Governments in which 43 Indian cities were studied.
The report highlights that there is consistency in growth rate, but it can be observed that Mumbai and other cities with a population above 30 lakh have registered lower growth. The population of Mumbai, as per the 2011 Census, is 1,24,42,373.
In the category of Municipal Income's Own Source Revenue Compound Annual Growth Rate (CAGR), the report states that Mumbai has a Nominal Own Source Revenue CAGR of 6.29% and a Real Own Source Revenue CAGR of 1.74%.
The loss of Octroi Tax post-2017 and negative growth in Property Tax Revenue (real value) have contributed towards below-growth performance of the city compared to the national GDP in own source revenue in terms of nominal and real value.
Mumbai records average own source revenue of Rs 17,431 per capita
From FY 2016-17 to FY 2023-24, Mumbai has an average per capita own source revenue of Rs 17,431.82. The average percentage share of own source revenue to total income stands at 67.71%.
In the category of Tax Revenue (FY 2016-17 to FY 2023-24), Mumbai has a Nominal Tax Revenue CAGR of 5.67%, while the Real Tax Revenue CAGR of Mumbai is 1.14%.
Octroi was the main source of revenue for Mumbai, but the loss of this revenue source due to the implementation of the Goods and Services Tax (GST) has significantly impacted revenue generation for the Brihanmumbai Municipal Corporation (BMC).
Mumbai has a Nominal Average Per Capita Tax Revenue of Rs 4,344.19. The city is witnessing an increasing per capita value from 2016-17 to 2023-24, rising from Rs 3,671.21 to Rs 5,074.71. Mumbai has an Average Percentage Share of Tax Revenue to Total Income of 17.26%.
Property tax revenue shows negligible growth
Mumbai has a Nominal Property Tax Revenue CAGR of 4.25%, whereas its Real Property Tax Revenue CAGR is -0.22%. This shows that there is no growth in property tax revenue from 2016-17 to 2023-24.
Mumbai has the Average Per Capita Value of Property Tax at Rs 1,106.40. Mumbai has the Average Percentage Share of Property Tax to Total Income at 4.43%.
Mumbai has the Average Percentage Share of Property Tax to Own Source Revenue at 6.59%.
Non-tax revenue remains major contributor
Mumbai has a Nominal Non-Tax CAGR of 6.50%, whereas its Real Non-Tax CAGR is 1.93%. Mumbai generates significant non-tax revenue as it levies many charges and fees such as water supply charges, interests, and dividends.
Mumbai has the Average Per Capita Non-Tax Revenue at Rs 13,087.63.
Mumbai has the Average Percentage Share of Non-Tax Revenue to Total Income at 50.45%. Mumbai generates significant non-tax revenue as it provides various municipal services, which generate substantial revenue. It also earns income from interest and dividends.
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Government grants account for nearly 30% of total income
Under the category of Average Percentage Share of Government Grants to Total Income, Mumbai has the Average Percentage Share of Total Revenue Grants to Total Income at 29.68%.
Mumbai has the Average Percentage Share of Total Capital Grants to Total Income at 0.17%.
Mumbai has the Average Percentage Share of Grants to Total Income at 29.85%.
Note: Wherever years are not mentioned, the figures are average numbers from FY 2016-17 to FY 2023-24.
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