A growing financial crisis is gripping all 11 city corporations in Karnataka—excluding BBMP—due to mismanagement of internal revenue and undertaking development projects beyond their fiscal means. According to Urban Development Department data reviewed by Deccan Herald, at least eight corporations are facing a cumulative deficit of ₹1,648 crore.
Mysuru tops the list with a shortfall of ₹942 crore—almost triple its projected income of ₹392 crore for 2025-26. It is followed by Hubballi-Dharwad (₹289 crore deficit) and Mangaluru (₹207.52 crore). Although Mysuru Commissioner Shaikh Tanveer Asif refuted the deficit claim, insisting the city has sufficient resources, officials suggest otherwise.
Hubballi-Dharwad Municipal Corporation (HDMC) raises ₹321 crore annually, yet its expenditures exceed ₹610 crore. Commissioner Rudresh Ghali admitted that ₹120 crore in contractor dues remain unpaid, with only ₹25 crore cleared. This delay has discouraged contractors from bidding for new projects. In addition, HDMC has struggled to pay salaries and pensions to over 1,500 employees, worsened by the implementation of the Seventh Pay Commission.
Though Urban Development Minister Byrathi Suresh assured a ₹2,250 crore allocation for civic projects, many corporations accuse the state of delaying fund disbursements. The State Finance Commission has also mandated that local bodies cover 15–20% of salary expenses through their own sources.
In Mangaluru, Commissioner Ravichandra Naik has directed staff to limit expenditures to essentials like monsoon readiness and drain cleaning. A senior official noted political pressure often compels civic bodies to initiate emergency works without proper funding.
Read Also: