Demonetisation: Delhi’s economic growth slows down for first time in five years | delhi | Hindustan Times
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Demonetisation: Delhi’s economic growth slows down for first time in five years

delhi Updated: Mar 08, 2017 22:22 IST
HT Correspondent
Delhi

Finance minister Manish Sisodia will table the 2017-18 budget in the Delhi assembly on Wednesday. (Arun Sharma/HT File)

Delhi’s economic growth might slow down to 8.26% during 2016-17 from 8.82% the previous year due to demonetisation dampening the pace of development, the state’s economic survey said on Tuesday.

However, the national capital is projected to grow at a faster rate than the national average of 7.1% estimated by the Central Statistics Organisation, which is responsible for coordinating statistical activities in India.

Though the scrapping of high-value currency notes crimped consumption and slowed investment activity across the nation, central government data showed that the Indian economy grew 7% in the October-December period – much to the scepticism of economists across the globe.

The Arvind Kejriwal government is likely to scale up the tax collection target for 2017-18, although it failed to achieve the budgetary goal of Rs 24,000 crore for the current financial year. Sources said finance minister Manish Sisodia might hike the number to Rs 25,000 crore in his budget proposal, to be tabled in the Delhi assembly on Wednesday.

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In June, Sisodia’s first full budget had raised the target to Rs 24,000 crore — a 30% hike compared to the Rs 18,500-crore target set for 2014-15.

The Economic Survey of Delhi tabled by the finance minister also said the capital’s per capita is estimated at Rs 3.03 lakh – three times the national average. It painted a rosy picture of state finance, pegging the fiscal surplus at 0.24% of the gross state domestic product for 2015-16 as against 0.04% the previous year. The revenue surplus came up to Rs 8,656 crore in 2015-16, as compared to Rs 6,075 crore in 2014-15.

DELHI IN A NUTSHELL
ECONOMIC SURVEY 2016-17: Delhi’s economic survey was presented on Tuesday. It shows rising per capital income and forest cover in the national capital.
Housing and Water Supply
  • The total number of water connections provided by DJB increased from 17.85 lakh in 2009-10 to 23.21 lakh in 2015-16.
  • 98% of total population of Delhi is residing in urban areas. There is a near universal electrification.
  • DUSIB constructed 10,684 houses for poor across the city.
Education
  • The literacy rate in Delhi is around 86%, higher than all India level of 74% as per 2011 Census.
  • The per student per annum expenditure on education has gone up from Rs 29,641 in 2012-13 to Rs 44,640 in 2015-16.
  • The total number of schools increased from 5,073 in 2010-11 to 5,796 in 2015-16.
Social Security and Welfare
  • A network of 10,897 Anganwadi Centers cover a population of 11.98 lakh children up to the age of 6 years and pregnant and nursing mothers, who are economically deprived.
  • About 3.82 lakh senior citizens provided monthly old age pension in 2016-17 (till December 2016).
  • About 8.20 lakh girls registered under Ladli Yojana and 1.32 lakh girls received the final maturity value up to March 2016.
  • 90 recreation centres for senior citizens were functioning in 2015-16.
Public Distribution System
  • Delhi a pioneer state in implementation of the National Food Security Act, 2013.
  • 19.50 lakh National Food Security Smart Cards issued to eligible households, almost all digital Food Security Cards are Aadhar enabled.
  • The number of fair price shops in Delhi is 2,283 and on an average each fair price shop handles more than 854 ration cards as on March 2016.
Transport
  • The total number of motor vehicles in Delhi (as on March 31, 2016) was 97.05 lakh, an increase of 9.94 per cent over previous year.
  • Road network in Delhi increased from 32,131 lane km in 2007-08 to 33,868 lane km in 2015-16.
  • The existing network of DMRC will be increased to 325 km after the completion of phase-III. Average daily ridership gone up to 26 lakh during 2015-16.
Power and Industry
  • Electricity supply in Delhi increased from 23,537 million units in 2005-06 to 33,615 million units in 2015-16
  • The total number of electricity consumers in Delhi was 52.62 lakh in 2015-16.
  • Peak demand increased from 3626 MW in 2005-06 to 5846 MW in 2015-16
  • Power consumption recorded an annual growth of approximately 3.39%
Forest
  • The total forest and tree cover area in Delhi increased to 299.77 sq km in 2015 from 297.81 sq km in 2013
  • South Delhi district has the maximum forest cover area at 82.14 sq. km, and the lowest forest cover is in East Delhi of 3.28 sq km
  • The gross cropped area reduced from 52,816 hectares in 2000-01 to 33,454 hectares in 2015-16 due to fast urbanisation

According to the economic survey, tax collection registered a growth of 13.61% in 2015-16 as compared to 2.64% in 2014-15. The tax collection for the year 2016-17 was budgeted with a growth of 20.84% over the previous year.

In keeping with the Delhi government’s focus on public welfare, the budget for the education sector has gone up from Rs 4,799 crore in 2011-12 to Rs 10,690 crore in 2016-17. Education received the highest allocation that financial year, amounting to 23% of the total budget. Consequently, the per-student-per-annum expenditure incurred by the Delhi government on education has increased from Rs 29,641 in 2012-13 to 44,640 in 2015-16.

The per-capita health spending, or the money spent by the government on every Delhi resident’s healthcare, has gone up from Rs 1,936 in 2014-15 to Rs 2,999 in 2015-16.