Madhya Pradesh recorded a notable increase in urban tax collection during the financial year ending March 31. The combined revenue of municipal bodies across the state rose by more than 11%, reaching approximately ₹2501.26 crore, compared to ₹2252.16 crore in the previous fiscal period. Despite this overall growth, performance across cities varied significantly.

Bhopal and Indore show slow progress

The state capital Bhopal and the commercial hub Indore registered relatively slow growth in revenue collection. Bhopal’s municipal income increased by just 2.17%, while Indore recorded a 5.18% rise. Both cities lagged behind the state average, indicating a slower pace in expanding civic revenue sources or tax recovery efficiency.

Ujjain emerges as the top performer

In sharp contrast, Ujjain delivered exceptional growth in tax revenue, recording an increase of over 47%. The city’s municipal performance stood out as one of the strongest in the state, driven by rising economic and commercial activities linked to tourism and urban expansion.

Impact of Mahakal corridor expansion

A key factor behind Ujjain’s revenue surge has been the expansion of the Mahakal corridor, which has significantly increased tourist inflow and business activity. This development has directly influenced multiple revenue streams, especially parking charges, trade licenses, advertising fees, and other civic service-related taxes.

Mixed performance in individual tax categories

While property tax in Ujjain increased from ₹47 crore to ₹55 crore, certain categories saw declines. Water tax fell from ₹6.70 crore to ₹3 crore, and income from building permissions dropped from ₹12 crore to ₹3 crore. However, other civic revenue sources such as parking fees, trade licensing, fire services, sanitation charges, and advertising witnessed a sharp rise, collectively increasing from ₹10 crore to nearly ₹60 crore.

Smaller cities also show strong growth

Beyond major urban centers, smaller municipal bodies like Morena and Burhanpur also reported strong improvements, with tax collections rising by more than 50% in key categories. These gains reflect improving local administration and better tax compliance in semi-urban regions.