Hyderabad, May 8: The financial crisis in the Greater Hyderabad Municipal Corporation (GHMC) has deepened as its outstanding loans reached Rs 4,717 crore. Once known for strong fixed deposits, the civic body now struggles with mounting debt and pending dues.
Until 2013, GHMC maintained nearly Rs 1,000 crore in fixed deposits. However, after the formation of Telangana, funds were diverted to other departments. As a result, the civic body moved from fixed deposits to overdrafts.
Moreover, GHMC borrowed around Rs 6,000 crore for flyovers and infrastructure works. Since 2017, the State government has reportedly provided no major financial support. Consequently, the debt burden continued to rise.
GHMC Debt Crisis and Property Tax Recovery Plans
The State government recently examined proposals to take over GHMC debts. However, officials said such a move could affect the State’s borrowing limits. Therefore, the government decided to clear pending dues owed to civic bodies instead.
As part of this plan, the Cabinet approved a One Time Settlement scheme for pending property taxes on government buildings. The scheme applies to GHMC, Cyberabad Municipal Corporation, and Medchal Municipal Corporation areas.
Officials said property tax arrears from Central and State government buildings stand at Rs 6,375 crore. Out of this, Rs 5,864 crore relates to the 2025-26 financial year alone.
Additionally, authorities expect the One Time Settlement scheme to generate nearly Rs 1,686 crore for the three corporations. Officials believe this move will improve the financial position of civic bodies.
Meanwhile, total pending property tax dues across GHMC, CMC, and MMC areas reached Rs 14,686.6 crore. Government buildings account for Rs 5,864 crore, while private properties contribute Rs 8,734 crore.
The government fixed a recovery target of Rs 2,762 crore for the financial year. However, officials collected Rs 2,558.80 crore by March 31, 2026.
Last month, the Early Bird Scheme generated Rs 1,211 crore across the CURF region. Cyberabad Municipal Corporation collected Rs 510 crore and secured the top position. GHMC followed with Rs 441 crore, while MMC collected Rs 260 crore.
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