Due to huge shortfall in revenue collection by several departments, Delhi Government has decided to reduce the Plan size to the extent of shortfall in revenue. The reduction so far is to the tune of Rs1,000 crore as the shortfall in revenue generation so far is estimated at Rs3,000 crore. Significantly, the Delhi Government has also decided to impose ban on electronic office equipment that include purchase of new car or vehicle, TV, photocopier, computer, refrigerator, printer in the current financial year under the Plan head.
Due to shortfall of revenue collection and increasing expenditure in the Non-Plan head, lieutenant Governor Najeeb Jung has decided to hold review meeting every fortnightly. The Chief Secretary has already expressed annoyance over the poor collection of revenue and failure bureaucracy to increase collection. Significantly, the budget of Heath Department has been reduced by Rs265 crore. So this department will find a big shortfall in its allocation in this financial year. The Public Works Department (PWD), which is working on several mega projects across the city, including seven new BRT corridors, will find reduction in its allocation to the tune of 163 crore.
Thought the overall budget of PWD has been reduced by Rs163 crore, this department has been provided additional allocation of Rs60 crore for Capital works projects of Education Department. At least seven school buildings of secondary school level had been inaugurated in Rohini and Dwarka by the Union Human Resources Development Minister Smriti irani last week. Thus, the allocation of Rs60 crore will help commence the projects of all these secondary schools in the Capital at the earliest.
Transport Department of Delhi Government has been struggling to purchase a new fleet of 1,200 buses for the past one year. But the plan allocation of Transport Department has been reduced by Rs200 crore due to non-realisation of revenue from different departments.
The Chief Secretary has taken firm measure to stop purchase of electronic gadgets required in offices like fax machine, photo copier, or any other electronic gadget etc. Purchase of cars or official vehicles by Government officials have also been banned. Several departments have already decided to hire car for official use as the purchase of new cars has been banned forthwith by the Chief Secretary.
Despite huge shortfall in revenue collections, only the Urban Development (UD) Department will be the sole beneficiary in terms of additional allocations. Chief Secretary has decided to provide additional fund to the UD Department for the completion of projects under the MlAlAD scheme. So far, the Sales Tax Department alone is far behind the target of revenue collection. The Sales Tax Department was given a target of 21,000 crore for the financial year ending March 2015 but the department had achieved to the tune of Rs12,000 crore by November-end. It is pertinent to mention here that it is difficult for the Sales Tax Department to achieve the target as the shortfall is to the tune of Rs9,000 crore till November-end.