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In a gesture of relief to Mumbai residents, the Maharashtra cabinet, in its session last week, opted against changing property tax rates within the city, particularly pertinent with civic polls looming since 2022. Simultaneously, the cabinet endorsed the hosting of job fairs across the state, signifying a proactive stance towards bolstering employment prospects. The urban development department proposed, and the weekly cabinet meeting under Chief Minister Eknath Shinde's leadership subsequently ratified the decision to uphold prevailing property tax rates. This decision will elevate Mumbai residents of a potential additional financial burden amounting to INR 736 crore in taxes.
The cabinet also approved another proposal for conducting employment fairs, scheduled to take place in Chhatrapati Sambhajinagar, encompassing the entire Marathwada region along with Nashik, Pune, and Konkan divisions. Branded as the ‘Namo Mega Job Fair’, a similar event held in Nagpur previously elicited significant participation. The cabinet, recognizing the potential of such endeavors, allocated INR 30 crore for the organization of six such fairs, with an anticipated creation of at least two lakh job opportunities.
Furthermore, the cabinet cleared a proposal from the social justice department to introduce the ‘Chief Minister Vayoshri Scheme’ targeting senior citizens, involving the establishment of centers offering mental well-being and yoga therapy. Envisaged to benefit over 15 lakh senior citizens aged above 65, the scheme underscores the government's commitment to enhancing the quality of life for its elderly populace. The state cabinet has also approved an extension of the Urban Renewal Mission until March 2030, with expanded coverage to include all municipal councils and nagar parishads.
Under this initiative, the cabinet has also sanctioned various projects, such as constructing railway overbridges, acquiring land for national highways, and implementing sewage treatment schemes. Additionally, the cabinet has supported proposals to encourage bamboo cultivation and honey bee farming among farmers, offering subsidies and funding assistance. Furthermore, a leopard safari project in Junnar tehsil and the expansion of Shirdi airport have received financial allocations, aiming to boost tourism and infrastructure development in the state.
Despite property taxes serving as BMC's second-largest revenue source, revenue collection has witnessed a decline over the past two years. Factors contributing to this decline include the exemption of property tax for residential properties up to 500 square feet, resulting in a revenue loss of INR 462 crore. Additionally, the pandemic-induced deferral of tax revisions from 2020–21 to 2023 further depleted revenue by INR 1,080 crore. During the financial year 2022–23, BMC garnered INR 5,792 crore in property taxes, crucial for sustaining various civic amenities.
The civic body heavily relies on property taxes as its main revenue stream, vital for sustaining essential civic amenities across the city's expansive and varied terrain. Although the freeze on tax rates has been implemented, the BMC has not yet concluded the revision of tax bills, leading to delays in their distribution.
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