Political parties across the spectrum are announcing welfare schemes and cash benefits ahead of civic elections, ignoring how these will be funded.
The BMC’s reserves have shrunk due to costly infrastructure projects, lack of new revenue sources, and rising dependence on borrowings.
Experts and opposition leaders warn that election-driven welfare announcements will ultimately shift long-term financial pressure onto Mumbai’s taxpayers.
Even as the Brihanmumbai Municipal Corporation (BMC) struggles under severe financial stress, political parties across the spectrum are announcing new welfare schemes and cash benefits to attract voters ahead of the civic elections. What is often left unsaid is that any political party forming the civic body will have to implement these promises through the BMC itself, using its already stretched financial and administrative machinery.
These announcements ignore the harsh financial reality of the country’s richest municipal body and risk pushing a heavier fiscal burden onto Mumbai’s taxpayers in the coming.
According to official data and media reports, the BMC is facing mounting liabilities of Rs 1.93 lakh crore, while its estimated budget for the financial year 2025–26 is Rs 74,400 crore. Despite this widening financial gap, parties such as the Mahayuti alliance, Shiv Sena–MNS alliance, Indian National Congress, and both factions of the Nationalist Congress Party (NCP) have announced schemes including Rs 1,500 monthly financial aid to women domestic workers, discounted BEST bus travel for women, and proposals like a universal card offering free medicines and other benefits.
Who Announced What
The alliance of Shiv Sena UBT and Maharashtra Navnirman Sena has announced a Rs 1500 aid to women domestic workers. The Mahayuti alliance said that it will waive water tax (8 per cent) for the next five years and will provide 50 per cent concessions to women travelling in BEST buses.
Both factions of NCP, have announced that they will provide free water supply to chawls and slum areas in the city whereas INC has announced the launch of universal citizen cards, under which holders will get free medicines.
Richest Municipal Corporations’ Financial Crunch
The BMC’s financial stress has worsened due to a sharp reduction in fixed deposits, which were once its biggest financial strength. Over the past few years, data on the website of BMC showed that the large reserves have been used for high-cost, high-profile infrastructure projects. At the same time, the civic body has failed to create new revenue sources, leaving it increasingly dependent on borrowings and delayed payments from the state government.
The situation has become so serious that the BMC recently wrote to the Maharashtra government, urging it to clear long-pending dues that have now touched Rs 10,900 crore. These unpaid amounts include property tax and water charges owed by various state government departments. According to BMC data, these dues have risen by Rs 1,200 crore in just one year, from Rs 9,600 crore in November 2024 to Rs 10,900 crore by December 2025, across 20 departments.
Experts warn that such welfare schemes may lead to long-term costs borne by ordinary Mumbaikars and taxpayers. “Political parties are announcing several financial welfare schemes. This will lead to financial pressure on the municipal council which is already under financial pressure and this will eventually lead to taxpayers,” said Prakash Pawar, Professor, Political Science, Ferguson College.
Opposition voices argue that political parties are using civic finances as a tool for election gains, without taking responsibility for the consequences. The Ladki Bahin (Beloved Sister) Yojana aid was not disbursed for two months by the Devendra Fadnavis government.
Maharashtra Congress spokesperson Sachin Sawant pointed out. "These selfish brothers have no emotion. They stopped the instalment for two months and have disbursed the amount during the election campaign. They seek something in return. The sisters should show these selfish brothers their place as they expect a return gift in the form of votes," Sawant claimed.
This comes after Maharashtra Minister Girish Mahajan claimed that financial aid for December 2025 and January 2026 under the Ladki Bahin Yojana would be disbursed before Makar Sankranti. And post this, the state EC barred the state government from releasing the January instalment of the scheme in advance, citing the enforcement of the model code of conduct for municipal elections.
As Mumbai heads towards crucial BMC elections, the gap between political promises and financial reality is becoming increasingly clear. While parties compete to outdo each other with giveaways, the city’s civic body continues to reel under heavy debt. In the end, observers warn, the cost of these promises will not be paid by political parties, but by the people of Mumbai themselves.
