The lieutenant Governor has convened a high-level meeting of all revenue-generating departments on Thursday to discuss the revenue shortfalls. Due to huge shortfall in revenue collection by several departments, the Delhi Government has decided to reduce the annual Plan size. The lieutenant Governor, Najeeb Jung, is likely to give his nod to the reduction of plan size of several departments, including Public Works, Social and Family Welfare, Health and Transport Departments.
The lieutenant Governor has directed the departments to step up their efforts to meet the target in the year 2014-15. He is also holding meeting every fortnight to assess the financial health. On the other hand, the departments are waiting for enforcement of model code of conduct in the national Capital as they have expected that once the Assembly polls date announced, the expenditure will be reduced and revenue collection will be improved.
The heads of department are clueless about how to generate revenue in the current financial year. 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 Rs163 crore.
Though the overall budget of the PWD has been reduced by Rs163 crore, the department has got additional allocation of Rs60 crore for capital works projects of the Education department. At least seven buildings of secondary schools had been inaugurated in Rohini and Dwarka by 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.
The Transport department 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 purcahase 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 following the ban. However, the Urban Development (UD) department will be the sole beneficiary in terms of additional allocations.
The 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 had set a target of Rs21,000 crore for the financial year ending March 2015 but the department could collect 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 the end November.