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A substantial 65% of the budget—Rs 12,952.20 crore—has been earmarked for development works, with the administration’s emphasis on urban expansion and improvement to connectivity and roads
As part of its broader development agenda, the BBMP has outlined eight focus areas—Sugama Sanchara Bangalore, Clean Bangalore, Green Bangalore, Tech Bangalore, Education Bangalore, Healthy Bangalore, Vibrant Bangalore, and Water Serene Bangalore—with a budget of Rs 1,790 crore allocated for these initiatives in 2024-25. (Representational Image)
Bengaluru is trying to step up its game to stay India’s IT capital and rehabilitate its image, with the city’s civic body turning to artificial intelligence (AI) to streamline governance.
AI has been integrated into property tax collection, helping the Bruhat Bengaluru Mahanagara Palike (BBMP) collect Rs 4,900 crore in property tax for 2024-25—the highest in India for the second consecutive year. For 2025-26, revenue is expected to increase to Rs 5,716 crore.
The BBMP presented its budget for 2025-26, marking the fifth consecutive year it has been handled by officials rather than elected councillors. The term of the previous council ended in September 2020, and despite numerous delays and legal challenges, civic polls have not been conducted. The absence of an elected mayor and councillors since the Covid year has left decision-making in the hands of administrators.
The total budget has been set at Rs 19,927.08 crore to reshape the city, with a major focus on infrastructure, maintenance, and public utilities.
A substantial 65% of the budget—Rs 12,952.20 crore—has been earmarked for development works, with the administration’s emphasis on urban expansion and improvement to connectivity and roads.
What’s in store for Bengaluru?
As part of its broader development agenda, the BBMP has outlined eight focus areas—Sugama Sanchara Bangalore, Clean Bangalore, Green Bangalore, Tech Bangalore, Education Bangalore, Healthy Bangalore, Vibrant Bangalore, and Water Serene Bangalore—with a budget of Rs 1,790 crore allocated for these initiatives in 2024-25.
Infrastructure remains a pressing concern, and Bengaluru is looking at major projects to address its growing urban challenges.
For the first time, BBMP plans to execute projects worth Rs 73,600 crore through a special purpose vehicle (SPV).
One of the biggest projects in the pipeline is the Underground Tunnel Road — a dream project of Karnataka deputy chief minister DK Shivakumar—which is expected to ease congestion on Bengaluru’s overburdened arterial roads. The underground corridor is aimed at cutting travel time and reducing surface traffic congestion.
The plan includes tunnel roads along NH-7 and NH-4, with a Rs 17,780 crore tunnel planned from Hebbal to Silk Board and another from KR Puram to Mysore Road, bringing the total tunnel cost to Rs 42,000 crore. These projects will follow a public-private partnership (PPP) model with government-backed guarantees.
Another initiative of Shivakumar is the Bengaluru Skydeck, proposed to be South Asia’s tallest, which is planned to be 250 metres high. This will be similar to the structure and tourist attraction seen in Malaysia’s KL Tower or the Burj Khalifa in the UAE.
BBMP also aims to build 110 km of signal-free urban flyovers for Rs 13,200 crore and 40 km of metro-road flyovers for Rs 9,000 crore. Additionally, Rs 3,000 crore has been allocated for constructing 300 km of roads along stormwater drains, while Rs 6,000 crore will be used to expand the white-topping of major roads.
Better tax collection and a one-time settlement (OTS) scheme
With revenue crucial for Bengaluru’s development, BBMP has been making efforts to improve tax collection. The one-time settlement (OTS) scheme for pending property tax allowed thousands of residents to clear dues, helping the civic body recover Rs 1,277 crore from three lakh properties.
Bengaluru, one of the world’s fastest-growing cities, has seen 8.5% GDP growth over the past decade and ranks second in India for GST collection, said BBMP officials. With 60,000 new housing units added annually, the city’s biggest challenge is upgrading its infrastructure to keep pace with rapid growth.
To improve tax administration, BBMP has set up a new IT cell, digitising over 25 lakh property records under an Aadhaar-based e-Khata system secured with blockchain technology. A BBMP official claimed the civic body has “fulfilled its promise of a fully digital, contactless, and faceless e-Khata system,” calling it India’s largest digital property records database. The system is now being expanded into a GIS-based e-Khata with geo-referenced maps for easier access by property owners.
Alongside this, the BBMP Property Management Rules, 2024, have been introduced to regulate 6,818 civic-owned properties, with an estimated Rs 100 crore expected in lease revenue. Amendments to the BBMP Act, 2020, have also been made to improve property tax assessment, collection, and administration.
Allocation for BBMP under state budget
The Karnataka government has allocated Rs 3,589.57 crore for BBMP’s 2024-25 budget, of which Rs 2,817.96 crore has already been received, they said. The final Rs 750 crore is expected before the financial year ends.
Additionally, amendments to zonal regulations related to the premium floor area ratio (FAR) are being finalised. This will allow property owners and developers to build beyond existing FAR limits, with the additional revenue being used exclusively for infrastructure development.
Use of AI in city management
Beyond taxation, AI is also being used for monitoring civic issues.
AI has become a major talking point for BBMP as the civic body looks to automate various aspects of governance. It has already implemented AI-driven tracking for property tax defaulters, linking e-Khata and e-Aasthi databases with trade licenses, building plan approvals, BESCOM, BWSSB, and other records. The aim is to tighten tax compliance and improve revenue collection.
Safe City cameras and BBMP vehicle-mounted cameras are analysing illegal constructions, potholes, encroachments, garbage accumulation, unauthorised advertisements, and flood-prone areas. BBMP claims that AI will allow for faster identification and resolution of these problems, though its effectiveness remains to be seen.
The civic body is also shifting public services from web portals to mobile platforms, citing increased smartphone usage among residents. Multiple apps are in the pipeline, including those for trade licenses, telecom towers, building plan approvals, waste management, lake maintenance, and asset management. Existing apps—such as Fix-Pothole, Sahaaya-Public Grievances, e-Khata, Advertisement, and Property-GPS—are set to be merged into a single BBMP-One app. This consolidation, expected to cost Rs 40 crore, falls under the Brand Bengaluru-Tech Bengaluru initiative.
Solid waste management in focus
Solid waste management remains a key priority for Bengaluru, with Rs 1,400 crore—or 7% of BBMP’s total budget—allocated to improve waste disposal and cleanliness. Establishment expenses, including salaries and administrative costs, account for Rs 1,751.23 crore (9%), while administrative expenses alone stand at Rs 393.01 crore (2%).
As part of the Brand Bengaluru-Swachha Bengaluru initiative, a 30-year integrated solid waste management (ISWM) plan has been developed to streamline waste collection, transportation, processing, and disposal. The project will be implemented in four phases, with waste management facilities set up on 100-acre sites across different parts of the city.
Efforts are also underway to clear 97.82 lakh tonnes of legacy waste. In 2024-25, 47.60 lakh tonnes are being processed through bio-mining at Mandur Phase-1 and bio-remediation at Bellahalli. In 2025-26, another 39.07 lakh tonnes will be cleared from Mandur Phase-2, Mavallipura, Doddabidarakallu, Lakshmipura, Bingipura, and Subbarayanapalya. The Rs 187 crore project is being funded under the Swachh Bharat Mission Urban 2.0, with contributions from the Central and State Governments along with BBMP resources.
Saving Bengaluru’s lakes
Having faced a severe water shortage as well, under the Water Safety Bengaluru initiative, the BBMP has allocated Rs 210 crore for the development and maintenance of lakes across the city.
To promote ecological awareness and biodiversity conservation, bird repositories will be established in all city lakes. Additionally, BBMP plans to implement rainwater harvesting systems in its buildings and public spaces.
The Government of Karnataka, with Rs 2,000 crore in financial assistance from the World Bank, aims to improve Bengaluru’s climate resilience.
A major project involves constructing barriers along 174 km of Rajakaluves, part of the city’s 860 km stormwater drain network, to prevent rainwater from flooding densely populated areas. This three-year initiative is expected to receive Rs 500 crore from the World Bank.
To provide permanent relief to flood-affected areas, Rs 247.25 crore has been allocated for 2025-26 under the National Disaster Relief Fund.
Additionally, borewells and reverse osmosis (RO) plants within BBMP’s jurisdiction will be transferred to the Bangalore Water Supply and Sewerage Board (BWSSB), along with state and external funding, after deducting pending maintenance expenses.
Free electric bikes for pourakarmikas
Under its welfare scheme, the BBMP has allocated Rs 10 crore for the e-Sarathy scheme, which will provide financial assistance for the purchase of 500 electric autos and goods e-autos.
Additionally, Rs 15 crore has been earmarked for the free distribution of electric two-wheelers to eligible working women and pourakarmikas across all BBMP zones.
Specially abled individuals will also receive electric two-wheelers with extra wheels for better convenience.
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