In a major disclosure that can be a setback for the Aam Aadmi Party (AAP) politics, it has been revealed that the subsidies granted by the erstwhile Arvind Kejriwal Government, including those announced during the previous Sheila Dikshit Government, will automatically elapse at the end of this fiscal year, as no provisions have been made for the 2014-15 financial year.
While this is in complete contrast to lieutenant-Governor Najeeb Jung’s announcement that the subsidies will continue for the next financial year too, Delhiites will now end up paying the same for power and water bills as they paid in the pre-Kejriwal Government era. Top sources told The Pioneer that there is no provision of grant for subsidy on power and water in the vote-on-account for the year 2014-15 passed by Parliament on Friday.
The 50 per cent subsidy on power to those who use up to 400 megawatts and free 667 litres of water to those having functional meters, announced by the Kejriwal Government will continue till March 31 of the current year as the Government has approved a grant of Rs363-crore for this purpose.
“From April onwards, there will be no subsidy for power and water consumers,” sources said. The subsidies will cease to exist after March 31. If the Government decides to continue subsidy to power consumers, it will have to make arrangements for Rs1,300-crore annually. According to the data compiled by the Power Department, there are a total of 38.11 lakh domestic power consumers in Delhi. The amount of annual subsidy needed to provide 667 litres of free water is expected to be around Rs160 crore for the 3.25-lakh consumers having functional water meters. The Kejriwal Government has announced Rs40 crore subsidy to water consumers for three months,” the sources said.
In a bid to fulfil his promises, the 49-day-old Kejriwal Government had announced freebies on water and power despite strong objections raised by its own Finance Department which stated that subsidy should not be the ultimate solution to giving relief to power and water consumers. The vote-on-account also did not have provision for Rs6-crore for those defaulters who had participated in Kejriwal’s Bijli Paani Andolan in 2012.
After promulgation of President’s Rule, Jung had announced continuation of all decisions taken by the Kejriwal Government. The Delhi Government was inclined to continue subsidy to power and water consumers but it was advised against it by the Central Government as it could cause a drain on the national exchequer in view of the poor financial health of the city. The MlA local Area Development Fund has been revived in the vote-on-account.
The Budget Estimate of Rs36,066-crore is approved in the Interim Budget for the year 2014-15. It includes a Plan outlay of Rs17,000-crore (including Rs1,000-crore for Centrally Sponsored Scheme (CSS)) as compared to approved outlay of Rs16,450-crore, including Rs450-crore for CSS for the annual year 2013-14. The total non-Plan Budget is Rs19,066-crore. The total expenditure is expected at Rs36,066-crore in 2014-15.
It includes revenue expenditure of Rs26,871.86-crore and Capital expenditure of Rs9,194.14-crore for the next fiscal year. As per the Budget document, the estimated total expenditure of Rs36,066-crore during 2014-15 will be funded from revenue receipts of Rs35,750.29-crore, capital receipt of Rs699.71-crore and remaining from opening balance. The revenue receipt includes tax revenue of Rs31,571-crore; non-tax revenue of Rs1,161.01-crore, additional central assistance of Rs1,000-crore for CSS and Rs1,190.78-crore as central assistance for Plan expenditure.
It is noted that due to the economic slowdown, poor collection of revenue, non execution of new projects and political instability, the Delhi Government cut its Plan size of the Budget estimate from Rs37,450-crore to Rs35,423.59-crore in 2013-14. As far as Plan outlay is concerned, it has reduced Rs15,150-crore in the revised estimate as against the Budget estimate of Rs 16,450-crore in 2013-14.