Despite a global slowdown, Delhi’s economy in on track and is growing at a steady pace of 9% compared to 5% of the country, Delhi chief minister Sheila Dikshit said in her budget speech.
She said that Delhi’s financial position remained robust as her government had ensured better tax administration through compliance and was expecting a growth of more than 20% in tax collection in the current financial year.
“We thought if we carry out more efficient tax collection, a citizen will feel that it would be better to pay than evade taxes. Fortunately, traders have responded well to it,” she told HT.
Delhi’s gross state domestic product has been estimated at Rs. 3,65,726 crore in 2012-2013, which was Rs.3,10,736 crore in 2011-2012.
“Our contribution to national domestic product is 3.8% while our population is just 1.4% of the country,” Dikshit said.
Dikshit said Delhi’s robust tax collection has helped bringing down outstanding loans, which is likely to come down to Rs.28,888 crore by March 2013 from Rs.30,140 in March 2012.
“Our fiscal deficit has been projected to reduce from Rs.2921 crore in 2011-12 to Rs.1,268 in 2012-13, which is no less achievement,” she said in her budget speech.
The CM told HT that her government had been scaling down taxes and even this time, it had not really tinkered with the taxation policy much.
After announcing a budget of Rs.37,450 crore, Dikshit said her government would be able to meet the maximum budgetary demand from own tax revenue.
“We will be able to finance Rs.30,454 crore from tax revenue Rs.913 crore from non-tax revenue. Our government will also receive capital receipts of Rs.4113 crore, and grant-in aid of Rs.2,701 crore from the Central government. This will leave us with a R731 crore surplus, which is quite healthy,” Dikshit said.
She said that Rs.16,000 crore had been set aside for planned expenditure while the total non-planned expenditure has been proposed at Rs.21,000 crore. The per capita income of Delhi now stands at Rs.2,01,083.
“It has gone up five times since this government came to power. In 1998, when we came to power it was Rs.40,060,” she added.