Delhi again not given its due in Central taxes, says deputy CM Manish Sisodia | delhi | Hindustan Times
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Delhi again not given its due in Central taxes, says deputy CM Manish Sisodia

Delhi deputy chief minister Manish Sisodia said the national capital had been again “deprived” of its due share in the Union budget, which was presented by finance minister Arun Jaitley in Parliament on Wednesday.

delhi Updated: Feb 02, 2017 11:00 IST
In the pre-budget consultations of the Centre with the finance ministers, Sisodia had demanded that its share in central taxes be raised to Rs 5,000 crore.
In the pre-budget consultations of the Centre with the finance ministers, Sisodia had demanded that its share in central taxes be raised to Rs 5,000 crore.(Virendra Singh Gosain/HT PHOTO)

Delhi deputy chief minister Manish Sisodia said the national capital had been again “deprived” of its due share in the Union budget, which was presented by finance minister Arun Jaitley in Parliament on Wednesday.

An allocation of Rs 758 crore was made to Delhi for the financial year 2017-18, which is the same as 2016-17.

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“Delhi has been deprived of its due from Central share in this year’s budget too. Delhi’s share in central taxes remains stagnant for the 17th year at Rs 325 crore,” Sisodia, who is also the finance minister of Delhi, said.

In the pre-budget consultations of the Centre with the finance ministers, Sisodia had demanded that its share in central taxes be raised to Rs 5,000 crore, besides suggesting that the Centre compensate the state governments for their revenue losses due to demonetisation.

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“The Budget of NCT of Delhi has increased from ₹8,739 crore in the year 2001-02 to ₹46,600 crore in 2016-17, whereas the share in central taxes has remained frozen at ₹325 crore since 2001-02. However, states are getting a share in central taxes every year based on the annual increase in collection of central taxes,” an official said, adding that Delhi’s contribution in central taxes is currently over ₹1 lakh crore.

The AAP government also criticised the Centre for not providing any separate allocation for the local bodies in the Capital. City’s municipal corporations, especially the east and north civic bodies, have been facing acute cash crunch leading to regular strikes by the municipal staff over delay in payment of salary and arrears.

Both the Delhi government and the BJP-ruled civic bodies have been engaged in war of words over disbursal of ‘adequate’ funds to the municipal corporations.

The allocation under share of Central taxes has not changed for Delhi for close to two decades. The AAP government has been vocal about an increase in the Central share, even as the Arvind Kejriwal government has been on the warpath with the BJP government at the Centreover a host of issues.

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The state government said not a single rupee has been enhanced in the Budget 2017-18 for Delhi by the Centre.

“The government of India has not earmarked any funds to local bodies in NCT of Delhi, although we had requested for allocation of ₹4,087 crore for the same,” the government said in a statement.

Officials said the government had requested an increase in the normal central assistance to at least Rs 1,000 crore as revised estimate in the current year and ₹1,500 crore in 2017-18’s budget estimate. However, Rs 412.99 crore has been proposed by the Centre under its normal central assistance, which is same as it is in the current year 2016-17.

Sisodia also criticised the decision to cap cash donations to all political parties at ₹2,000. “Post-demonetisation, even vegetable vendors have had to go cashless for transactions as small as ₹20. Why should political parties get a relaxation of up to Rs 2,000?” the deputy CM said.

“It will not be possible to achieve target of tax revenue in the current financial year and as a result all developmental works may suffer,” Sisodia had said.

WITHDRAW CENTRAL EXCISE DUTY ON BUSES

Deputy chief minister Sisodia had also suggested withdrawal of service tax at 15% which is applicable on 40% of the total revenue collected from air conditioned bus service imposed by the government of India.