Hyderabad's Municipal Trifurcation Faces Financial Sustainability Concerns
Even as Hyderabad's civic administration has been divided into three separate municipal corporations, significant concerns are emerging regarding the financial viability of the newly established bodies. The trifurcation created the Greater Hyderabad Municipal Corporation (GHMC), Cyberabad Municipal Corporation (CMC), and Malkajgiri Municipal Corporation (MMC), each now operating independently with distinct fiscal challenges.
MMC Emerges as Most Financially Vulnerable Entity
Among the three corporations, MMC appears to be the most financially vulnerable. Revenue generation within its jurisdiction remains substantially lower compared to both GHMC and CMC. Property tax, which typically contributes approximately 70% of a municipal corporation's core income, amounted to about Rs 430 crore in MMC between April 1 and February 12 of the current financial year. This figure pales in comparison to GHMC's collection of Rs 749 crore and CMC's impressive Rs 813 crore during the identical period.
The underlying reason for MMC's financial weakness lies in its geographical composition. Large portions of the corporation encompass semi-urban areas and recently merged territories, including Ghatkesar, Keesara, Pedda Amberpet, Jawahar Nagar, and Pocharam, along with numerous former gram panchayats. These regions lack a robust commercial or high-value residential tax base, severely limiting revenue potential.
Simultaneously, these areas are still in the process of developing essential urban infrastructure. Critical components such as internal roads, underground drainage systems, drinking water pipelines, stormwater drains, and adequate street lighting require substantial capital investment, further straining MMC's limited financial resources.
Commissioner Outlines Strategy for Financial Improvement
In an interview, MMC commissioner T Vinay Kumar Reddy acknowledged the challenges and outlined the corporation's strategy moving forward. "We will depend on both internal reforms and state government support," Reddy stated. "Apart from receiving our allocated share from the erstwhile GHMC's Rs 11,400 crore budget, we will seek additional assistance from the state government whenever necessary to strengthen infrastructure and enhance civic amenities."
Reddy emphasized that improving revenue mobilization represents a key focus area for MMC. "We are actively working to identify unassessed and under-assessed properties to boost property tax collections. Additionally, we recognize strong potential in advertisement revenue, particularly along strategic stretches like Uppal and Ghatkesar on the national highway. Efforts will also be intensified to improve collections from building permissions, property rentals, mutation fees, and trade licences," he elaborated.
GHMC Faces Its Own Fiscal Challenges Post-Trifurcation
The restructured GHMC is not entirely comfortable either, despite its historical prominence. With the high-revenue Information Technology corridor and several key commercial hubs now falling under CMC's jurisdiction, the parent corporation is poised to lose a considerable portion of its traditional tax base.
Meanwhile, outer areas that remain under GHMC's control, such as Adibatla, Jalpally, and Badangpet, demand substantial capital investment for roads, drainage systems, and other essential urban services. In the current budget, approximately Rs 2,000 crore has been allocated for development works in merged municipalities across the respective corporations.
CMC Benefits from Revenue-Rich Zones
In contrast to its counterparts, CMC anchored by revenue-rich zones like Serilingampally and Kukatpally is expected to maintain stronger financial health. This advantage stems from its concentration of Information Technology parks, commercial establishments, and high-rise residential developments, which generate significant tax revenue.
Urban planners note that GHMC and MMC could face tighter fiscal management challenges in the short to medium term, while CMC enjoys relative stability.
Experts Call for Strategic Urban Planning
Urban planning experts emphasize that the long-term success of Hyderabad's municipal trifurcation will depend on several critical factors. These include stronger revenue reforms, consistent state grants, efficient tax administration, and timely infrastructure execution, particularly in peripheral zones.
"The state government must adopt a calibrated growth strategy to ensure balanced urban development," stated a senior urban planner. "Creating at least two central business districts within MMC limits and promoting growth corridors around Shamshabad and Adibatla under GHMC could help expand the revenue base significantly."
The planner further suggested that encouraging real estate growth in MMC through targeted incentives, improved infrastructure, and comprehensive policy support could gradually strengthen its financial position. Without sustained fiscal backing and strategic urban planning, experts warn that the economic disparity among the three municipal corporations may widen over time, undermining the intended benefits of the trifurcation initiative.
