HYDERABAD: Seven years after their merger with the Greater Hyderabad Municipal Corporation (GHMC), the 27 municipalities and municipal corporations still struggle to secure basic amenities and financial support.
These urban local bodies (ULBs) are heavily reliant on limited property tax collections, lacking the necessary resources to undertake vital civic works such as road maintenance, drainage infrastructure, parks, and more.
According to official sources, although the state has approved their merger, the GHMC plans to maintain these ULBs as separate municipal circles with their current staff until a comprehensive reorganization is implemented. The government is reportedly considering the establishment of two or three larger civic bodies, but the GHMC itself faces significant financial challenges and is unable to settle payments to contractors for completed projects.
The total annual property tax assessment across the 27 ULBs amounts to approximately ₹674 crore, yet only 50% to 70% of this is collected. Notably, Manikonda leads with a demand of ₹70 crore, followed by Nizampet (₹63 crore), Narsingi (₹42 crore), Ameenpur (₹40 crore), Badangpet (₹40 crore), Dundigal (₹36 crore), and Bandlaguda Jagir (₹33 crore). Boduppal, Shamshabad, and Tellapur each generate around ₹25 crore annually.
Conversely, several municipalities are in dire financial straits. “In some cases, their revenue barely reaches double digits, making it impossible to pay salaries consistently. For instance, Adibatla’s revenue demand is ₹4.26 crore, Thukkuguda ₹6.25 crore, and Ghatkesar ₹9.70 crore,” stated an official from the directorate of municipal administration. Only fast-developing areas like Manikonda, Narsingi, and Nizampet manage to secure modest additional income through building permits, advertisements, and trade licenses.
Former municipal commissioner TRK Rao remarked that the previous BRS government established new municipalities in name only, without providing funding for essential services such as internal roads and civic amenities, leaving them comparable to panchayats in functionality.
Officials have indicated that the GHMC’s full takeover could be delayed until sufficient funds or a clear government strategy is developed.
