PMC submits ‘optimistic’ draft budget of Rs 7,650 crore for 2021-22
The PMC has increased the target of revenue from development charges to Rs 985 crore for 2021-22 as against Rs 750 crore in the current fiscal, even when the civic body was likely to get only Rs 350 crore by March-end.
The PMC also stated that the civic employees should wear clothes made of khadi at least once a week or Friday to promote the use of khadi clothes.
Struggling to implement 50 per cent of the budget for the current fiscal, the Pune Municipal Corporation (PMC) on Friday submitted an ‘optimistic’ draft budget of Rs 7,650 crore with estimated capital expenditure of Rs 2,928.10 crore for the financial year 2021-22.
“The pandemic has affected the budget implementation in the current fiscal as PMC is likely to have revenue collection of Rs 4,500 crore by March-end this year as against the target of Rs 7,514.31 crore. However, the civic administration has set a budget estimate of Rs 7,650 crore for 2021-22. We are optimistic rather than being pessimistic,” said Municipal Commissioner Vikram Kumar after submitting the budget estimate to the Standing Committee.
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He said that the revenue targets set by the civic administration were not high but achievable. “The property tax has emerged as the largest revenue source for the PMC and is expected to continue further. The property tax target of Rs 2,650 crore is achievable as properties from the newly merged 23 villages are going to come in the civic body’s tax ambit and result in increasing the collection of tax,” Kumar said, adding that the administration has collected Rs 1,370.99 crore from property tax in current fiscal so far against the target of Rs 2,320 crore.
“There will be addition of over one lakh more properties from 23 villages in the tax ambit of PMC. Also, the civic administration will be using an artificial intelligence system to identify unassessed properties in the city,” he said.
The PMC administration was considering the proposed hike of 11 per cent in property tax get approved for 2021-22, which would increase the revenue collection by Rs 130 crore in the next financial year and help with the expenditure to carry out development of basic facilities in the recently merged 23 villages in the civic jurisdiction. The proposed hike will be 5.5 per cent in general tax, 3.5 per cent in cleanliness tax and 2 per cent in the water tax, in addition to a 5 per cent increase in water charges.
The PMC has increased the target of revenue from development charges to Rs 985 crore for 2021-22 as against Rs 750 crore in the current fiscal, even when the civic body was likely to get only Rs 350 crore by March-end. “The pandemic resulted in less revenue from development charges as the real estate industry was also affected due to lockdown. The PMC will get more revenue from development charges as new constructions in the area of 23 newly merged villages have to pay the fees to the civic body,” Kumar said.
The PMC has also identified a new source of revenue from leasing out its amenity space to private organisations, PPP model for road construction and affordable housing projects. “The PMC is also hopeful of increase in revenue with the implementation of unified Development Control rules in the city,” Kumar said.
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The civic administration has 246 amenity spaces with a total area of 100 acres and there would be addition to it with the inclusion of new area in the city, the municipal commissioner said. “These amenity spaces can be leased out for long term and can be converted to a regular source of revenue for PMC. It will save civic money on developing infrastructure while ensuring revenue from lease amounts, which will not be less than the ready reckoner of the respective land,” Kumar said.
“The PPP model for road construction and affordable housing projects will save the civic money, which can be used for other purpose. The PMC is ready to issue credit bonds in place of cash or Transfer of Development Rights (TDR) to anyone taking up the development of city roads, affordable housing projects and civic gardens, the civic chief added.
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Ajay Jadhav is an Assistant Editor at The Indian Express, Pune. With over 22 years of experience in the industry, he is a highly specialized journalist whose work focuses on the intersection of urban infrastructure, governance, and sustainability.
Professional Background
Role: As Assistant Editor, he plays a key role in the editorial direction of the Pune bureau, specializing in urban policy and its direct impact on citizens.
Education: He holds a Master’s degree in Communication and Journalism from Savitribai Phule Pune University and a PG Diploma in Corporate Social Responsibility (CSR). He also studied at the prestigious Fergusson College.
Impactful Reporting: He is credited with research-based articles on conservancy staff (waste workers) that influenced national policy for better working conditions. He is also known for exposing the contrast between high-end infrastructure (like helipads for leaders) and the lack of basic amenities like schools in their home districts.
Personal Interests: An avid trekker and sports enthusiast, his personal interest in the outdoors often informs his reporting on environmental protection and sustainable development.
Recent Notable Articles (December 2025)
His reporting in late 2025 has been dominated by the upcoming January 2026 Civic Polls in Pune and Pimpri-Chinchwad, and the city's infrastructure boom:
1. Political Analysis (Civic Elections 2026)
"Not friendly but a bitter fight lies ahead between BJP and NCP for PMC, PCMC" (Dec 22, 2025): A detailed look at the intense rivalry between the Mahayuti partners as they prepare for the January 15 municipal elections.
"Pune civic polls: Big blow to NCP, NCP(SP) as leaders switch to BJP" (Dec 20, 2025): Reporting on high-profile poaching and party-hopping ahead of the elections.
"Ajit Pawar's NCP continues domination in Pune, wins 10 of 17 local bodies" (Dec 21, 2025): Analyzing the results of the local self-government body elections as a precursor to the main civic polls.
2. Infrastructure & Urban Development
"Looking Ahead at 2026: Pune to see inauguration of much-awaited Hinjewadi to Shivajinagar metro route" (Dec 22, 2025): An "outlook" piece on the critical Metro Line 3 project expected to finish by March 2026.
"Building Pune: PMC to construct double-decker bridge over Mula-Mutha River" (Dec 18, 2025): Detailing a major project aimed at easing traffic between Hadapsar and Kharadi.
"Condition of highway from Pune to Kolhapur to improve in a year: Gadkari" (Dec 4, 2025): Reporting on the Union Minister’s assurances regarding one of the state's most critical transport corridors.
3. Civic Governance & Environment
"Install sensors, LED indicators at construction sites within 15 days: PMC to builders" (Dec 16, 2025): A follow-up to the "Breathless Pune" series, reporting on new mandates for builders to monitor air quality in real-time.
"Errors in electoral rolls: PMC corrects data of 92,466 voters" (Dec 16, 2025): Tracking the administrative efforts to clean up the voter lists before the 2026 elections.
Signature Style
Ajay Jadhav is known for accountability journalism. His work often bridges the gap between high-level policy and the "ground zero" reality of Pune's residents. He is particularly focused on Sustainable Development, ensuring that as Pune grows into a "Bharat Mandapam" style destination (referring to his report on the Lohegaon project), its environmental and social safeguards remain intact.
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