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Funds unused, Delhi gets a budget cut

india Updated: Mar 17, 2012 01:48 IST
HT Correspondent
HT Correspondent
Hindustan Times
budgetary allocation

The Delhi government's inability to utilise the budgetary allocation in 2011-12 fiscal has cost it dearly.


The central government has cut down central planned assistance (CPA) and grant under the Jawahar Lal Nehru National Urban Renewal Mission (JNNURM) and assistance for basic services to urban poor (BSUP) and urban infrastructure and governance (UIG) for 2012-13.

The budget estimates of CPA have come down from Rs 1,257crore in 2011-12 to Rs 1,100 crore for 2012-13 while the assistance under the JNNURM scheme is down to Rs 700 crore in this budget in comparison to Rs 900 crore in the previous one.

Similarly, the assistance under the UIG and BSUP has also been slashed to Rs 400 crore and Rs 290 crore, respectively, for 2012-13 fiscal as compared to Rs 500 crore and Rs 390 crore announced in the 2011 budget.

The Delhi government had spent huge sums of money on several infrastructure projects, including construction of roads, flyovers, stadiums, pavements and strengthening public transport by inclusion of low-floor buses under the JNNURM scheme ahead of the Commonwealth Games, it has not taken up even a single project since then.

The money under the JNNURM, UIG and BSUP schemes is generally used on projects such as low-cost housing for poor, sanitation, drainage and water facilities, creating urban infrastructure like roads, relocation of slums, sustainable growth and for the improvement of transport facilities and mobility plans.

The cost of the projects under the JNNURM in Delhi was shared by the Central and Delhi government in the ratio of 65:35, officials said.

Senior Delhi government officials, however, said cutting down on assistance would not hamper development and welfare schemes.

"Our tax collections under excise, stamp duty, value added tax and registration tax have increased substantially. We will manage to fund our projects," said a senior Delhi government official, requesting anonymity.

The Centre has also allocated Rs 68.39 crore and Rs 49.86 crore as additional assistance under central road fund and specific schemes respectively.

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