Central Hall: A civic budget that rivals small state budgets, yet why Mumbai still lags behind other metro cities?

Despite a triple engine governance model, a BMC budget of Rs. 74,427.41 Crs, and generous support from State and the Centre, Mumbai still lags behind when it comes to world class infrastructure. Where does the money go?

X: @prashanthamine

Mumbai: It is often touted that the Brihanmumbai Municipal Corporation (BMC) annual budget is more than that of budgets of smaller states in the country. Despite a triple engine governance model, a BMC budget of Rs. 74,427.41 Cr, and generous support from State and the Centre, Mumbai still lags behind when it comes to world class infrastructure. Where does all the money go? No one dares ask the question as to why Mumbai still lags behind other metro cities when it comes to infrastructure development.

Come election time all the political class resorts to throwing the usual smoke screen, diversionary tactics of the usual rhetoric of Marathi-versus-non-Marathi, that there is a diabolical plan to break-away Mumbai from the rest of Maharashtra, emotional family reunions and freebies galore.

The idea behind raking up emotive issues and throwing up smoke screens or resorting to diversionary tactics is done simply to hide one’s governance failures.

The quintessential requirement that any metropolis like Mumbai needs to have is a modern world class infrastructure if it has to compete globally, retain its global ranking and continue to attract investment.

For that to happen Mumbai needs to have a modern world class public transport system of suburban railways, metro rail, public bus transport, coastal road and ferry connectivity, east-west transport connectivity, ducting of public utilities, efficient water supply and sewerage disposal system, assured uninterrupted electricity supply and wider cleaner roads.

Consider this, the BMC was formed 152 years ago in 1873. One of the oldest and richest civic bodies in India, if not in Asia. Ironically enough a decade earlier, London had its first underground metro railway on January 10, 1863!

Mumbai or rather BMC has tie-ups with 15 cities across the world as Sister Cities. Of those 9 Sister Cities have had their metro railway much before Mumbai – New York City 1904, Barcelona 1924, St. Petersburg 1955, Yokohama 1972, Stuttgart and Busan in 1985, Los Angeles 1990 and Shanghai in 1993.

Again when compared to 6 major metro cities in India, Mumbai comes fourth when it comes to having metro railways. Kolkata had its first metro railway in 1984, New Delhi in 2002, Bengaluru 2011, Mumbai 2014, Chennai 2015 and Hyderabad 2017.

At present only two metro lines of Versova-Ghatkopar and Gundawli (Andheri East)-Andheri West are fully functional. Whereas the underground Aqua Line or the Mumbai Metro Line 3 between Aarey Colony to Cuffe Parade in South Mumbai is partially operational. The Mono Rail operates between the far-eastern suburb of Chembur and Jacob Circle in South Mumbai.

The Navi Mumbai Metro Line 1 between Belapur CBD and Pendhar although operational offers little connectivity solutions to people living in faraway Eastern and Western suburbs of Mumbai. To make matters worse the BEST has discontinued many of its long distance routes east-west connecting routes.

Almost all the Mumbai metro and Monorail stations face accessibility and connectivity issues. Matters are only made worse as the BEST is unable to provide connecting bus routes to most of these Metro and Monorail stations. These Metro and Mono rail networks are unable to take the load off the already over-stretched Central and Western railway suburban routes.

For many decades now it is an open secret that the Brihanmumbai Electric Supply and Transport Undertaking (BEST) is a loss making enterprise. The BEST has been surviving now purely on the revenue generated by its Electricity Supply wing in Mumbai City district which has a sort of absolute monopoly designed for its survival. The accumulated losses of the BEST is about Rs.9,200 crore and the losses for 2025-26 alone amounts to Rs. 2,200 crore.

This pathetic state of affairs is reflected in the fact that out of the 2,911 fleet of buses that the BEST has in the entire Mumbai, only about 600 odd are owned by the BEST, about 2,100 odd are procured on wet lease. At present the BEST has only 700 odd Electric buses.

The BEST which once in 2009 had a fleet of 4,037 buses, today that fleet has been reduced to 2,911 buses. The private contractors and companies with inexperienced staff are having a field day. In many suburbs of Mumbai private bus operators have begun plying air-conditioned buses on BEST bus routes.

The collapsing public transport and the late development of alternate modes of public transport like Metro and Monorail has led to burgeoning private and personal transport. This has not only led to peak rush hour traffic jams, rendering the already debt ridden BEST bus transport ineffective. The BMC does operate 34 car parking lots across Mumbai, but menace of illegal car parking shows that the measures are insufficient.

Another menace that plagues Mumbai is that of illegal hawkers. The BMC operates 94 Mandai’s or vegetable markets across Mumbai, some of which are now in a dilapidated condition. Some notable BMC run markets include – Mahatma Jyotiba Phule Mandai (Crawford Market), Chhatrapati Shivaji Maharaj Mandai (Wadala), Fort Mandai, Colaba Mandai, Topiwala Mandai (Goregaon West) and at Andheri East to name a few.

However, their numbers are falling short as the suburbs now have extended suburbs. The Gokuldham Mandai in Goregaon East is perhaps the smallest of all the municipal markets. The Topiwala Mandai in Goregaon West which was demolished in 2018 to make way for a 16 storied market-cum-commercial complex is yet to see the light of the day for the 6 years since 2019. The net result has been hawkers have spilled on to the streets.

The state of 1,191 Primary and Secondary municipal schools is no different. Amidst the emphasis on Marathi, the number of BMC run Marathi medium schools has drastically come down from 421 to 283 schools in 2019.

Astonishingly enough, the BMC now runs 21 CBSE, ICSE schools as more Marathi medium schools have shut down in the last two decades or so. The BMC does run 2 D. Ed colleges of its own. The only thing left for the BMC to do is to run its own Engineering, Management, Pharmacy, Architecture and Design colleges!

On the Public Health sector front the BMC boasts of running 4 medical colleges attached to hospitals like KEM Hospital, Sion, Nair and Cooper hospital. A fifth one is slated to come up in the far-eastern suburb of Govandi. At present, the BMC operates 200 health facilities which includes – 16 general hospitals, 6 specialized hospitals, 29 maternity homes, 175 medical dispensaries and 183 health posts.

Also Read: Central Hall: The seeds that Lord Macaulay sowed in 1835 are now reaping dangerous harvest of divisive linguistic politics

But the civic health infrastructure in Mumbai Suburban district, both in the Eastern and Western suburbs is stretched to the limits. The health infrastructure is found wanting in the eastern side of suburbs and their extended suburbs. A case in point is a recently constructed hospital in Goregaon East that is awaiting inauguration for almost a year now. The upcoming medical college in Govandi and Cooper hospital in Vile Parle West are insufficient and far away for people in Mumbai Suburban district.

The BMCs total budget for 2025-26 is Rs. 74,427.41 crores that includes a Capital Expenditure outlay of Rs. 43,162.23 crores on infrastructure alone. The General Budget alone accounts for Rs. 38,460.10 Cr. It is not that the BMC does not generate revenue income of its own. The Revenue Income of the BMC for 2025-26 is pegged at Rs. 43,959.40 Cr.

Consider this – the total Capital Expenditure of Rs. 43,162.23 Cr project wise/department wise allocation for 2025-26 is as follows: Coastal Road Project’s Versova-Dahisar-Bhayandar Link (VDBL) Rs. 5,807.24 Cr, Roads and Transport department Rs. 5,100 Cr, Storm water drains Rs. 2,200 Cr, Bridges department Rs 1980 Cr, Goregaon-Mulund Link Road (GMLR) project Rs. 1958.73 Cr, Water Supply Rs. 5,400 Cr, Sewerage disposal Rs. 2,004.25 Cr and Health Budget Rs. 2,172.73 Cr.

Out of the Rs. 49,39,355 Cr state budget of Maharashtra, the state spends Rs. 39,634 Cr on Infrastructure. As against this the BMC spends Rs. 43,162.23 Cr on Infrastructure, which is higher by Rs. 3,523.23 Cr!

The Centre too in its union ministry-wise allocation of Rs. 50,63,345 Cr for its 2025-26 union budget, spends Rs.7,39,414 Cr on Infrastructure alone. That too in a Revenue Deficit of Rs. 5,23,846 Cr.

Much of the decay has got much to do with the political ruling class running the show. The undivided Shiv Sena has enjoyed uninterrupted power in the BMC since 1996 that is close to 29 years now. Prior to 1996, the Shiv Sena had its Mayors in 1973, 1976, 1985, 1987 and 1990.

Of the 76 Mayors of Mumbai since 1931, 59 of them have been from the post-Independence era after 1947. Prominent amongst them included – Yusuf Meherally 1942, Minoo Masani 1943, S K Patil 1949, G N Desai 1952, V N Desai 1960 and Hemchandra Gupte 1971 to name a few.

In the last 55 years since 1970, prominent personalities who have held the office of the Mayor of Mumbai included – Sudhir Joshi 1973, Manohar Joshi 1976, Murli Deora 1977, Chhagan Bhujbal twice in 1985 and in 1990, Dr Ramesh Prabhoo 1987, Sharad Acharya 1989, Nirmala Samant-Prabhavalkar 1994, Vishakha Raut 1997 and Dr Shubha Raul in 2007.

Although the metropolis is home to some of the top Indian Corporates and hence the adage the financial capital of India, the corporate world by and large stayed away from influencing the way Mumbai is governed. Since 2007 the office of the Mayor of Mumbai has steadily lost its aura. The office has become more ornamental in nature.

Mumbai needs a mayor, someone like New York City mayor Michael Rubens Bloomberg. Michael Bloomberg served as 108^th mayor of New York City for three consecutive terms from 2002 to 2013.

He turned around the $6 billion deficit of New York City by raising property taxes, implementing budget cuts, tax reductions and other cost saving measures. Although Bloomberg did not spend money from his corporate company coffers, he used the Bloomberg Philanthropies to fund initiatives related to public health, education and environment.

Mumbai desperately needs a political well educated ruling class that won’t treat it as a hen that lays the golden egg. Someone like Michael Bloomberg.

Sadly, the elite, the political class, the bureaucracy and the corporate world have by and large ignored the infrastructure woes of Mumbai. That was exemplified by the tragic incident of June 9 last month near Kalwa station in neighboring Thane district, as five commuters travelling for work in Mumbai fell off from the overcrowded train and lost their lives.