The Karnataka state government has released a grant of ₹125 crore to the five newly formed municipal corporations under the Greater Bengaluru Authority (GBA) to support their initial administrative and operational needs. Each corporation has received ₹25 crore as part of the first-stage funding, enabling them to manage daily expenses and essential services effectively.
The grant has been released through the Urban Development Department, ensuring that the newly constituted corporations can function without financial hurdles during their formative phase. Officials clarified that while property tax collections are ongoing, the revenue collected is still in the custody of the state government and has not yet been credited to the corporations’ bank accounts.
For the financial year 2025-26, a total of ₹300 crore has been collected as property tax across the city. Out of this, the government has transferred ₹125 crore to the Greater Bengaluru Authority to meet immediate operational requirements, including administrative costs, staffing, and basic infrastructure support for the corporations.
The move reflect the government’s commitment to strengthening urban governance and providing adequate resources to ensure smooth functioning of the newly established corporations. Officials emphasized that the grant will facilitate efficient service delivery, including sanitation, road maintenance, and civic amenities, during the initial period when internal revenue streams are yet to be fully operational. Authorities also highlighted the importance of financial planning and transparent utilization of funds by the new corporations to meet citizens’ needs while ensuring sustainable development and growth across Bengaluru’s expanded municipal landscape.