Vasai-Virar City Municipal Corporation Increases Property and Water Taxes to Address Revenue Shortfall
The Vasai-Virar City Municipal Corporation (VVMC) has taken significant steps to address a revenue shortfall by increasing property tax by 15% and doubling the water tax in its ₹4,208 crore budget for 2026-27. This revised budget, presented by Municipal Commissioner Manoj Kumar Suryavanshi, marks a substantial increase from the ₹3,194.71 crore budget of the previous year. The capital grant has also been raised to ₹642.61 crore from ₹320.78 crore.
Suryavanshi explained that the hikes were necessary due to the civic body's failure to meet expected income targets from property tax, water charges, and other fees in the current financial year. The increase in water tax is attributed to the high costs associated with water supply. Civic officials noted that despite spending over 80% of last year’s funds, there was a shortfall in expected revenue from various sources, including property tax, urban planning fees, market charges, and water dues.
This is the first budget in five years that elected representatives have discussed and approved following the March 9 elections. Previous budgets had been cleared administratively after the council’s term expired in 2020. During the standing committee meeting, members raised several concerns, including the rising expenditure on events such as the Mayor’s Marathon, high stationery costs, and lower allocation for medicines and public health.
Members also flagged delays in public infrastructure works, such as the construction and maintenance of parks, drainage cleaning, mosquito control, and the poor condition of public toilets. Concerns were raised about inadequate budgetary provisions for tribal welfare and senior citizens. Suryavanshi addressed these concerns, stating that the budget prioritizes healthcare, water supply, solid waste management, fire services, electricity systems, environmental conservation, roads, tourism, and urban amenities.
The VVMC is committed to improving the quality of life for its residents by focusing on essential services and infrastructure. The increased revenue is expected to help bridge the financial gap and fund critical projects that will benefit the community in the long run.
