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State grant ensures continuity of services as BBMP split takes effect.

Bengaluru’s Five New Corporations Get ₹125 Cr Boost for Smooth Takeoff.                                                                                                                                                                                                               

The Karnataka government has released an interim grant of ₹125 crore to help Bengaluru’s five newly formed city corporations transition smoothly after the split of Bruhat Bengaluru Mahanagara Palike (BBMP). Under the Greater Bengaluru Authority (GBA) Act, 2024, notified on September 2, the city has been reorganised into Bengaluru West, East, North, South, and Central corporations. Each will receive ₹25 crore to cover essential operational and administrative expenses during the early phase. Funds are being drawn from ₹300 crore in property tax collections lying in BBMP’s Union Bank account, but officials clarified this is only a stopgap measure until the new tax remittance system is operational. GBA Chief Commissioner Maheshwar Rao said the grant will be adjusted against future allocations once BBMP’s reserves are divided. With jurisdiction over 50 to 110 wards each, the new corporations mark a major shift in civic governance, aimed at decentralisation and improved service delivery.