NEW DELHI: On Friday, Ashwani Kumar, the Municipal Corporation of Delhi (MCD) commissioner, unveiled a budget estimate of Rs 16,531 crore for the fiscal year 2026-27, maintaining no increase in property tax rates or new taxes for the third consecutive year.
The corporation highlighted a significant growth in both its taxpayer base and tax revenue this year. By September, the number of property taxpayers rose by 19.8% compared to last year, surpassing the 1.2 million mark. Tax collection saw a 30% increase, yielding Rs 2,270 crore from property tax by September, up from Rs 1,589 crore year-on-year.
A major proposed reform includes the elimination of separate health trade licenses for hotels, restaurants, and similar businesses. As part of its ease-of-doing-business initiative, the MCD plans to merge health trade licenses with property tax, akin to the prior merging of factory and general trade licenses with property tax.
The emphasis will be on administrative and financial reforms. “This plan includes optimizing property tax income through geo-tagging and utilizing records from power distribution companies. Additionally, we aim to boost revenue from advertisements and licenses,” stated Kumar.
To enhance revenue, the MCD is contemplating a new ‘user charge’ for garbage collection, the construction of 20 multi-level parking facilities, and increased transfer fee collections in anticipation of higher circle rates. Plans are also underway to redevelop properties at Minto Road and other locations.
The MCD has set a bold goal to construct 600 km of roads by March 2026, leveraging funds from various government schemes.
Other significant initiatives include creating shelter homes for stray dogs at Bijwasan and Bela Road following the completion of the first facility in Dwarka, as well as enhancing waste-processing capabilities at Okhla, Ghazipur, Tehkhand, and Bawana waste-to-energy plants in a timely manner.
“To mitigate dust pollution, we are procuring 60 mechanical road sweepers and 60-litre pickers for internal roads less than 60 feet wide,” Kumar added.
The corporation has completed a drone survey covering 1,000 square kilometers in collaboration with the Delhi Development Authority and Survey of India to identify illegal constructions, remove unauthorized extensions, and improve house tax collections. Efforts are currently underway to obtain 3D data from the survey conducted thus far, according to the commissioner.
Kumar attributed the revenue growth to a one-time property tax amnesty scheme launched on June 1, which provided rebates on payments of outstanding dues from the past five years and current taxes across various categories. “Under the scheme, Rs 600 crore has been collected, benefiting nearly 140,000 taxpayers. As of December 4, total revenue reached Rs 2,410 crore,” he noted, with expectations of a total collection of Rs 2,800 crore.
This proposed budget is nearly Rs 500 crore lower than the estimates in the previous budget. Officials indicated that this reduction aims to ensure realistic revenue projections. “Previously, the target for property tax income was set at Rs 4,000 crore, now revised downwards. Similarly, the revenue target for conversion charges has been decreased,” an official reported.
Kumar also revealed the financial challenges the civic agency faces, with total liabilities amounting to Rs 15,792 crore, including Rs 7,009 crore allocated for employee benefits and pending sixth and seventh pay commission dues. Additionally, contractor payments are at Rs 520 crore, while the civic agency carries an outstanding loan of Rs 8,262 crore.
