Pune: PMC plans to form a revenue committee to strengthen and expand its income sources amid weak non-tax revenue and a projected Rs 3,000 crore gap against its Rs 12,618 crore target for 2025-26.Standing committee chairman Shrinath Bhimale made an announcement in this regard during the presentation of the civic budget for 2026-27 on Tuesday. According to officials, the proposed committee will be tasked with identifying new sources of revenue to help bridge the widening budget gap. The administration earned Rs 7,701 crore till Jan 31, 2026, and expected an additional Rs 2,000 crore by March-end — far below the projected target of Rs 12,618 crore.The officials said a similar committee comprising elected members was formed during the 2017-22 term but was dissolved under the subsequent administrative rule. “A number of measures are being planned to improve PMC’s financial strength. Establishing an independent committee and a special cell focused on augmenting PMC’s income is under consideration. Intensified tax collection efforts will also be prioritised. A dedicated committee will conduct weekly reviews of income-generation initiatives,” standing committee chairman Bhimale said.In March, municipal commissioner Naval Kishore Ram presented a Rs 13,995-crore budget for 2026-27 to the standing committee, an increase of around Rs 1,377 crore compared to the previous year’s outlay of Rs 12,618 crore. The standing committee revised the figure to Rs 15,669 crore. “Around 25% of the corporation’s funds are spent on staff and employees. Restrictions on property tax recovery and legal issues surrounding land acquisition for private construction have impacted revenue generation. Meeting this year’s target will be extremely challenging,” a senior PMC official admitted.Experts cautioned that PMC’s heavy reliance on property tax, building permissions and govt grants made it vulnerable to market disruptions. Issues like tax defaulters and a slowdown in real estate could significantly dent revenue collections, they said.Senior urban planner Ramchandra Gohad said, “Pune is expanding rapidly and requires massive infrastructure to keep pace. For this, PMC must diversify and increase its revenue streams. If PMC fails to do so, the promises outlined in the budget will remain unfulfilled as seen in recent years.”
