Mysuru: The Mysuru City Corporation (MCC), which presented a budget projecting a revenue of ₹1,311.13 crore for the 2026–27 financial year, is currently generating only ₹466.19 crore—about 35.56% of its target, according to criticism raised by a former mayor.
The shortfall has sparked concerns over the civic body’s financial sustainability, with allegations that it remains heavily dependent on government grants rather than strengthening its own revenue streams.
Heavy reliance on government grants
A significant portion of MCC’s projected income is expected to come from various government grants. These include ₹223.99 crore from the state government, ₹132.50 crore from the central government, ₹204.05 crore in special grants, and ₹16.33 crore under other grant categories.
Critics argue that such dependence reflects a lack of effort to build self-sustaining revenue mechanisms within the civic body.
Breakdown of actual revenue
The actual revenue of ₹466.19 crore has been generated through multiple sources. The largest share—₹286.72 crore—comes from property tax, khatha transfer fees, and advertisement charges.
Water tax and underground drainage (UGD) maintenance fees contribute ₹115.35 crore, while ₹27.50 crore has been collected through building licence fees and water connection charges. Trade licences account for ₹8.84 crore, and rent from commercial complexes and markets brings in ₹6.49 crore. Advertisement revenue contributes an additional ₹2 crore.
Ex-mayor calls budget unrealistic
Former mayor Shivakumar criticised the budget, calling it unrealistic and misleading. He pointed out that the corporation has projected ₹110.03 crore in grants from the 16th Finance Commission, despite not having an elected council since November 2023.
“Without an elected council, such grants are unlikely. Yet, the budget is projected as a surplus of ₹10.20 crore,” he said, questioning the credibility of the estimates.
Illegal water connections raise concerns
Shivakumar also highlighted the issue of illegal water connections, claiming that nearly 50% of households are not paying for water usage. He criticised the MCC for increasing water charges and UGD fees, arguing that the burden falls disproportionately on law-abiding taxpayers.
He alleged that many illegal users tap water using unauthorised connections and waste significant quantities due to lack of monitoring and enforcement. This, he said, not only results in revenue loss but also leads to wastage of a vital resource.
Low rental income under scrutiny
Another major concern raised was the low rental income from MCC-owned properties. The corporation reportedly owns over 2,000 commercial properties across Mysuru, yet earns only ₹6.49 crore annually in rent.
Shivakumar alleged that many tenants are subleasing these properties at much higher rates, while the MCC continues to receive minimal rent. In prime locations, commercial spaces reportedly fetch around ₹25,000 per month from sub-lessees, while the civic body receives only a fraction of that amount.
He noted that this issue is particularly prevalent in older properties such as Devaraja Market, where outdated rental agreements continue to result in significant revenue loss.
Call for reforms and better revenue management
The former mayor stressed that proper utilisation of civic assets and enforcement of tax compliance could significantly improve MCC’s financial position. He suggested revising rental agreements in line with market rates and bringing illegal users into the tax net.
Such measures, he said, would reduce the corporation’s dependence on state and central grants and enable it to function more efficiently as a self-reliant urban body.
Conclusion
The concerns raised over MCC’s finances highlight structural challenges in urban governance and revenue management. As Mysuru continues to grow, addressing inefficiencies in tax collection, property management, and resource utilisation will be crucial for ensuring sustainable civic administration.