Pune Municipal Corporation Grapples with Massive State Dues Totaling Rs 3,045 Crore
A recent Right to Information (RTI) application has brought to light a significant financial challenge facing the Pune Municipal Corporation (PMC). The civic body is struggling to recover long-pending dues amounting to Rs 3,045 crore from the state government, a revelation that comes as PMC attempts to meet its ambitious revenue targets.
Breakdown of Outstanding Payments
According to the RTI query filed by the citizens' group Sajag Nagrik Manch earlier this month, the outstanding amount comprises several key components. Under statutory provisions, a 1% surcharge is levied on stamp duty for property registrations within Pune city, which the state government is required to transfer to PMC. However, the corporation has not received Rs 1,075.53 crore under this head for the financial years spanning from 2019-20 to 2024-25.
Additionally, PMC is entitled to goods and services tax (GST) compensation from the state government following the abolition of the local body tax in 2017. The situation is further complicated by the merger of villages into PMC limits. For 11 villages merged in 2017, the corresponding GST grant of Rs 1,421.70 crore for the last eight years remains unpaid. Similarly, after 23 more villages were merged in 2021, PMC has yet to receive GST grants of Rs 572.22 crore for these newly added areas.
Citizen Group and Official Responses
Vivek Velankar, a member of Sajag Nagrik Manch, emphasized the urgency of the situation. "The PMC standing committee has presented a record-breaking budget of Rs 15,500 crore for 2026-27. Such a budget will require unprecedented efforts to generate revenue. Otherwise, it will remain inflated only on paper. Strong action is needed at both administrative and political levels to ensure that state funds, which rightfully belong to PMC, are released immediately," he stated.
An official from PMC's accounts department acknowledged that the civic body has already written to the state government seeking the release of the pending funds. "PMC is carrying out regular follow-ups with the state government. The civic body was under administrative rule for the last four years in the absence of corporators. So, we got limited responses. Now, since an elected body is in place, they (corporators) should expedite the process to recover the outstanding amount," the senior official explained.
Revenue Shortfalls and Recovery Plans
The administration has earned Rs 7,701 crore in revenue till January 31, 2026, and expects an additional Rs 2,000 crore by March-end. This total is far below the projected target of Rs 12,618 crore for the financial year, highlighting the critical need for the pending dues.
In response to concerns about achieving these ambitious revenue targets, standing committee chairman Shreenath Bhimale outlined several measures. "The administration has planned several initiatives, including an amnesty scheme and the deployment of special recovery teams. A dedicated revenue committee is being formed to take on multiple responsibilities. Besides identifying new sources of income, it will also actively follow up with the state government to secure pending funds," he added.
The citizens' group has now urged PMC to intensify its efforts to recover the outstanding amount, stressing that timely action is essential to avoid further financial strain and ensure the successful implementation of the corporation's budget plans.
