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Home / Delhi News / Budget: Delhi gets more but Kejriwal govt says share in taxes same

Budget: Delhi gets more but Kejriwal govt says share in taxes same

Union finance minister Piyush Goyal on Friday allocated ₹1,112 crore for Delhi in the budget estimates (BE) announced in the interim budget presented in Parliament.

delhi Updated: Feb 02, 2019 11:53 IST
HT Correspondent
HT Correspondent
Hindustan Times, New Delhi
Chief minister Arvind Kejriwal said the interim budget disappointed Delhi.
Chief minister Arvind Kejriwal said the interim budget disappointed Delhi.(HT FILE PHOTO)
         

Union finance minister Piyush Goyal on Friday allocated ₹1,112 crore for Delhi in the budget estimates (BE) announced in the interim budget presented in Parliament. The estimates for the next financial year saw an increase of over ₹245 crore compared to the last fiscal.

However, the Aam Aadmi Party government criticised the budget for not increasing the city’s share in central taxes and duties, which it said has remained unchanged for nearly two decades. Chief minister Arvind Kejriwal termed the interim budget the “final jumla” of the Modi government.

“Final jumla of Modi government: its interim budget too completely disappoints Delhi. Our share in central taxes remains frozen at ₹325 crore and nothing earmarked for local bodies. Delhi continues to be on its own financially,” Kejriwal tweeted.

Deputy chief minister Manish Sisodia, also the state finance minister, said the Delhi government had repeatedly requested the Centre to enhance the allocation in central taxes to at least ₹6,000 crore as against the current ₹325 crore.

“The budget of Delhi has increased from ₹8,739 crore in the year 2001-02 to ₹53,000 crore in 2018-19 (BE), whereas the share in central taxes has remained frozen at ₹325 crore since 2001-02,” he said.

Vijender Gupta, leader of the opposition in Delhi Assembly, launched a counter-attack on the AAP, saying the Delhi government itself had not released funds to the MCDs under the fourth and fifth Delhi finance commission. “The allocation of ₹1,112 crore is a welcome step. Contrary to what Kejriwal is saying, the interim budget is neither a jumla nor disappointing,” said Gupta.

Delhi’s share in the interim budget this year is more than the revised budget of 2018-19, ₹867.49 crore. The actual fund allocated in last year’s budget was lesser — ₹790 crore.

The ₹1,112-crore allocation includes a central assistance of ₹472 crore, which is also more than last year (₹449.99 crore). But, the deputy CM said the “nominal increase” in central assistance was nothing to cheer about as the expenditure of Delhi on schemes and programmes increased seven times from ₹3,129 crore in 2000-01 to ₹22,000 crore in 2018-19 (as per the budget estimates).

“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 that the normal central assistance be increased to at least ₹1,300 crore in the current year’s revised estimate and ₹1,500 crore in 2019-20 (BE),” Sisodia said.

The Delhi government also said that the Centre did not earmark any funds to the municipal corporations in Delhi (MCDs). “We are providing 12.5% of our annual net tax collection to the local bodies. But, there is no support from the Centre for the local bodies in Delhi,” Sisodia said.

Officials said the funds marginally increased this year because the Centre granted an additional aid of ₹300 crore for the Chandrawal water treatment plant project.

An amount of ₹10 crore has been given for enhanced compensation to the 1984 riot victims, which has remained the same as last year.