The Delhi Government is pinning its hopes on the Union Budget to meet shortfall of funds for development in infrastructure and social sector. Officials said Delhi needs more funds for implementation of Central schemes such as cleaning of Yamuna, development in unauthorised colonies and strengthening of power transmission. The Delhi Government has urged Centre to increase the allocation to implement these pet projects of Centre. The budget estimation for these schemes will begin only after the Union Finance Minister announces Delhi’s shares on Thursday.
Responding to a query, Chief Secretary SK Srivastava said that Delhi Government needs funds for pending projects. “We are looking forward to the General Budget on Thursday. Revenue collection has shown decline but will pick up in the next two months,” Srivastava said.
Principal Secretary (Finance) had earlier informed the Chief Secretary that the budget proposals of the Delhi Government have been finalised and at this stage, additional funds can only be provided by the Centre to implement these projects. Delhi gets Rs 3,000 crore under various centrally sponsored schemes from the Centre and its Rs 2,000 extra to implement these projects. According to officials, Delhi needs Rs 1,000 crore for cleaning of Yamuna, Rs 300 crore for strengthening of power transmission and Rs 500 crore for development of unauthorised colonies.
The financial health of Delhi is not in good state due to decline in revenue collection in the first quarters. This is the first time that revenue collection has shown decline in the first quarters. The value added tax (VAT) collection has declined to 4.56 per cent as compared to last year in the first quarter. The Government has collected Rs 3,890.62 crore this year as compared to Rs 4,077.96 crore last year. The Excise duty collections have shown a marginal hike increasing from Rs 670 crore last year to Rs 700 crore this time, collections from luxury and entertainment taxes are touching a low to Rs 60 crore from Rs 110 crore last year. The collection of stamp duty was also declined to 8-10 per cent in the first quarter as compared to previous year.
The Union Finance Ministry has been presented department-wise details of targets achieved, financial health and status of projects along with proposals for the current fiscal. Under the President’s Rule, the Delhi Budget will require the approval of both Houses and it is up to the Centre to introduce measures like a power subsidy. But no new taxes are possible till a new Government is elected.