Reaction of Delhi Deputy Chief Minister and Finance Minister on the interim budget

OFFICE OF THE DEPUTY CHIEF MINISTER
GOVT OF NCT OF DELHI

DATED : 01/02/2019

Reaction of Delhi Deputy Chief Minister and Finance Minister on the interim budget presented by the Central government in the Lok Sabha today :

1)      No Increase in Share in Central Taxes

In the Union Interim Budget 2019-20, the share in Central Taxes of Delhi has not been increased from Rs 325 Crore which is stagnant since 2001-02.
The Delhi Government deserves its legitimate share in Central Taxes to finance various developmental projects. We had requested the Government of India a number of times to enhance the allocation to at least Rs 6000 crore as share in Central Taxes as against Rs 325 crore being released to Delhi.
The Budget of Delhi has increased from Rs 8739 crore in the year 2001-02 to Rs. 53000 crore in 2018-19 (BE), whereas the share in Central Taxes has remained frozen at Rs. 325 crore since 2001-02.

2)      No Amount given to Local Bodies :

In the Budget 2019-20, Government of India has not earmarked any funds to Local Bodies in Delhi although we had requested for allocation of at least Rs 1000 crore as basic and performance grants to Local Bodies in Delhi in 2018-19(RE) and Rs 1150 crore in 2019-20 (BE).
We are providing 12.5% of our annual net tax collection to the Local Bodies, however, the Local Bodies in Delhi are not getting any financial support from the Government of India.

3)      Nominal Increase in Normal Central Assistance

However, the expenditure of Delhi on Schemes/Programmes has increased by seven times from Rs 3129 crore in 2000-01 to Rs 22000 crore in 2018-19(BE). The Normal Central Assistance which was 11.8% of the Scheme/programme expenditure in 2000-01 has declined to 2.04 % in 2018-19 (BE). We had requested to increase the Normal Central Assistance to at least Rs 1300 crore in the current year RE and Rs 1500 crore in 2019-20 BE.
However, in the Budget, an amount of Rs. 472 crore as an Additional Central Assistance has been proposed in 2019-20 (BE) as against Rs. 450 crore in the current year.

4)      Reimbursement of Compensation to 1984 Riot Victims

An amount of Rs 10 crore each has been proposed under 2018-19(RE) & 2019-20 (BE) as reimbursement of compensation to 1984 riot victims to Delhi government.

5)      Assistance to Delhi Disaster Response Fund

In the Union Budget 2019-20, an amount of Rs five crore has been proposed for Delhi government as an assistance for Delhi Disaster Response Fund which is negligible.

6)      Externally Aided Project of Water Treatment Plant at Chandrawal
In the Union Budget 2019-20, an amount of Rs 300 crore has been proposed for 2019-20 (BE) and Rs 80 crore in 2018-19 (RE) for GNCTD as the loan from JICA for Water Treatment Plant at Chandrawal.
The total outlay for Delhi government through the budget of MHA was Rs. 790 crore in 2018-19 (BE) and Rs. 867 crore in RE 2018-19.
The figure of Rs 1112 crore shown in 2019-20 (BE) is mainly due to loan taken from JICA under the Externally Aided Project for Water Treatment Plant at Chandrawal.
However, on all other paramters, it is more or less at the same level.

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