Bengaluru's Five Corporations Struggle for Revenue a Year After BBMP Split

Bengaluru's five newly formed city corporations are entering another year with their revenue disparities largely unresolved, having struggled to develop new income streams following the division of the erstwhile Bruhat Bengaluru Mahanagara Palike (BBMP). The Brand Bengaluru Committee had projected that the North and West corporations would record the lowest property tax collections in the city, estimated at ₹543 crore and ₹580 crore respectively.

While then Bengaluru Development Minister D.K. Shivakumar had stated that the civic bodies would receive state financial aid and urged appointed commissioners to explore fresh revenue avenues, their budgets followed a standard template with outlays exceeding ₹3,500 crore each. High hopes had been pinned on advertisement revenue, premium floor area ratio (FAR), and the conversion of B-Khata properties into A-Khata.

However, the Karnataka government's B-Khata to A-Khata conversion initiative received a poor response. The government had anticipated that six lakh properties would participate under an initial conversion fee set at 5% of the guidance value for land. After receiving only 12,000 applications, authorities offered a 60% rebate and lowered the fee to 2%, but only 80,400 applications—just 13.4% of eligible properties—were submitted by the end of August.

At the same time, earnings from advertisement fees and premium FAR failed to bolster corporation coffers. Both avenues had the potential to yield over ₹200 crore, but the proceeds were mandated for transfer to B-SMILE for major infrastructure works. For example, the North Corporation raised ₹185 crore from premium FAR, but the entire sum was transferred to the special purpose vehicle.

Efforts to collect paid parking fees also saw mixed outcomes. While the Central Corporation managed to implement paid parking across 10 roads and at K.R. Market, the remaining corporations failed to secure a single bidder. New parking permit regulations introduced by the Urban Development Department have faced public criticism, while vehicle towing operations are generating negative cash inflow.

On property taxes, the five corporations established a collective target of over ₹6,700 crore for the 2026-27 financial year, reaching ₹3,372.48 crore by August 22 after bringing 18,000 properties into the tax net. Greater Bengaluru Authority Chief Commissioner M. Maheshwar Rao stated on Wednesday that other administrative duties, including the socio-economic survey and census work, had hindered revenue drive efforts. The civic bodies are also still awaiting more than ₹800 crore in aid recommended by the 15th State Finance Commission.