Pune, 22nd May 2026: Pune Municipal Corporation (PMC) has received a major financial boost after the state government increased its monthly GST compensation grant by ₹17.5 crore. The civic body will now receive ₹242.5 crore every month as city’s GST share, amounting to nearly ₹2,910 crore annually.
The GST compensation remains one of PMC’s most important and assured sources of revenue. The increase comes at a crucial time as the corporation’s expenditure continues to rise due to employee salaries, maintenance costs, ongoing infrastructure works, and new development projects.
PMC’s budget for 2026-27 has crossed ₹15,669 crore, compared to last year’s budget estimate of ₹12,615 crore. However, the civic body reportedly earned only around ₹9,500 crore in actual revenue last year, leaving a significant financial gap.
With expenditure increasing steadily, the administration faces pressure to improve revenue generation while balancing civic spending.
The corporation mainly depends on three major income sources, property tax, construction and development-related revenue, and GST compensation. Earlier, PMC earned substantial income through the Local Body Tax (LBT). After LBT was abolished, the government introduced GST compensation to offset the revenue loss suffered by local bodies.
Since then, the GST grant has become a crucial financial support system for PMC. Civic officials said the revised grant amount has already started reflecting in the corporation’s accounts, with the last two months’ installments deposited in the civic treasury.
According to PMC Chief Accounts Officer Ulka Kalaskar, the enhanced GST compensation will help the civic administration manage rising financial commitments and continue essential development works across the city.
