CM springs surplus surprise, claims dark clouds over

Thanks to "buoyant tax collection and domestic savings", Delhi seems to be out of financial mess it had landed in the run up to the Common-wealth Games. Atul Mathur reports.

Thanks to "buoyant tax collection and domestic savings", Delhi seems to be out of financial mess it had landed in the run up to the Common-wealth Games.

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Reading out the budget speech, chief minister Sheila Dikshit said unlike other states, the Delhi budget this year was a "surplus" budget.

"Ours is a revenue surplus state … we are likely to attain a revenue surplus to the tune of R8,792 crore in 2010-2011," Dikshit said in her budget speech.

Delhi government had reportedly spent R16,000 crore on Commonwealth Games triggering the state government to increase various taxes to fill its near-empty coffers last year.

According to Dikshit, tax revenue in first 11 months of the current year increased by 23% in comparison to 10.4% during the same period in 2009-2010.

Delhi earned a whopping R10,601 crore from valued added tax - about 72 % of the total earnings - in first 11 months registering a growth of 18.62%. While excise collections went up by 22.4%, the revenue collected from stamp duty went up by more than 30% and from registration tax by 25%.

Of total expenditure of R27,067 crore (panned and non- planned) in 2011-2012, the government proposes to fund a massive R20,246 crore from its tax collections. Dikshit said its government expects to earn R14,500 crore through Value Added Tax only in the upcoming financial year.

Dikshit said Delhi's fiscal deficit has been pegged at R2,767 crore, which is 1.63% of the gross state domestic product, much less than the acceptable limit of 3%. "Our GSDP is likely to increase from R2,17,851 crore in 2009-10 to R2,58,808 crore in 2010-11, a growth of 18.8%."