MUMBAI: Mumbai, India’s financial hub and the nation’s richest municipality, is exploring new ways to boost revenue as a slowing economy hurts earnings from real estate.
Deteriorating finances in Mumbai — whose budget is bigger than several Indian states — bodes ill for India’s economic revival because local expenditure has a bigger impact than that by Prime Minister Narendra Modi’s administration. It’s unclear though how it will achieve that goal given tax collections on the sale of apartments and offices in India’s priciest property market missed the current-year’s target by 12%.
Mumbai’s municipal body expects income on its 786.7 billion rupees of investments to drop 11% due to lower bank interest rates in the next financial year. It also doesn’t see any additional increase in compensation from the federal government.