There is no change in the status of the Central taxes’ share to the Delhi Government in the Annual Budget presented by Finance Minister Nirmala Sitharaman on Friday. The demands of the Arvind Kejriwal Government for enhanced share in Central taxes remain to be fulfilled, with the Centre allocating Rs 325 crore to the Aam Aadmi Party Government.
The Central tax share for the Delhi Government has remained static for the last 18 years.
Kejriwal termed the Union Budget as a “routine Budget which had nothing new”.
In a pre-Budget meeting convened by Sitharaman last month, Delhi Deputy Chief Minister and Finance Minister Manish Sisodia had demanded Rs 6,000 crore for Delhi as the share from the Central taxes.
The issue was raised by the AAP Government, including Kejriwal, during the recently concluded Lok Sabha elections in May.
Sisodia said in the Budget 2019-20, the Central Government has not earmarked any funds to local bodies in the Delhi. “We had requested for allocation of Rs 1,150 crore as basic and performance grants to local bodies in Delhi in 2019-20,” said Sisodia “We are providing 12.5 per cent of our annual net tax collection
to the local bodies, however, the local bodies in Delhi are not getting any financial support from the Government of India,” Sisodia said.
Elaborating required Normal Central Assistance (NCA), Sisodia said the expenditure of Delhi on schemes has increased by about nine times from Rs 3,129 crore in 2000-01 to Rs 27,000 crore in 2019-20 (Budget estimate) while the Normal Central Assistance which was 11.8 per cent (Rs 370 crore) of the scheme expenditure in 2000-01 has come down to 1.75 per cent which is Rs 472 crore in 2019-20(BE).
“We had requested to increase the NCA to Rs 1,500 crore in 2019-20 (BE). However, in the Budget, an amount of Rs 472 crore as an Additional Central Assistance has been proposed in 2019-20 (BE),” the Finance Minister said.
Also, Sisodia said the legitimate demand of Delhi for its share of about Rs 3,202 crore in the unsettled amount of Rs 1.68 lakh crore of IGST which was devolved to the Centre and State without Delhi getting any share, has not been addressed in 2019-20 (BE).
“No funds have been allocated for the Government of National Capital Territory (NCT) of Delhi under this item,” said Sisodia.
The Union Government has allocated Rs 7,892.86 crore to the Delhi Police in its annual Budget for 2019-20. The Budget showed an increase of around Rs 400 crore over last year’s revised estimate.
Last year, the Delhi Police was allotted Rs 7,426.98 crore. In Budget 2019-20, out of the total amount allocated to the Delhi Police, Rs 7,468.99 crore has been earmarked for its direction and administration section and Rs 412.78 crore for police schemes. While, 11.9 crore has been allocated to the Delhi Police for schemes regarding safety of women (Nirbhaya Fund). In the interim Budget presented this February, the Delhi Police had been allocated Rs 7,892.86 crore, an increase of 6.40 per cent from the Budget outlay in the last fiscal.
According to the Union Budget 2019-20, the national capital received Rs 325 crore as grants in lieu of share in Central taxes and duties, although the total transfer to Delhi from the Home Ministry increased to Rs 1,112 crore this fiscal from Rs 867.49 crore in 2018-19.
“There is nothing new in the Budget. It is a routine Budget,” the Chief Minister told reporters on the sidelines of an event.
Noting that the share in Central taxes of Delhi remains the same at Rs 325 crore, Deputy Chief Minister Manish Sisodia, who also holds the charge of the Finance department, said the Delhi government deserves its legitimate share to finance various developmental projects.
“We had requested the Centre a number of times to enhance the allocation to at least Rs 6,000 crore as against Rs 325 crore,” he said in a statement.
Sisodia said the budget of the Delhi government has increased from Rs 8,739 crore in 2001-02 to Rs 60,000 crore in 2019-20, whereas the share in Central taxes has remained frozen at Rs 325 crore since then.
Both Kejriwal and Sisodia had met Sitharaman recently and had pointed out that Delhi contributed around Rs 1.5 lakh crore as Income Tax revenue towards the Central exchequer. However, in return, it received merely Rs 325 crore, they had said.
The transfers to Delhi in this year’s Budget from the Union Home Ministry included Rs 10 crore for enhanced compensation to anti-Sikh riot victims and an additional Central assistance of Rs 300 crore for the Chandrawal water treatment plant.
The total grant of Rs 1,112 crore also included Central assistance of Rs 472 crore. It was Rs 412.98 crore in 2017-18 and Rs 449.99 crore in 2018-19.
The Delhi government had urged the Centre to increase the central assistance to Rs 1,500 crore in 2019-20. “Expenditure of the Delhi government on schemes and programmes has increased by about nine times. It has increased from Rs 3,129 crore in 2000-01 to Rs 27,000 crore in 2019-20(BE).
“The central assistance, which was 11.8 percent (Rs 370 crore) of the scheme and programme expenditure in 2000-01, has declined to Rs 1.75 percent (Rs 472 crore) in 2019-20,” Sisodia said.
The deputy chief minister also pointed that the budget did not earmark any funds for local bodies, although Delhi government had demanded an allocation of Rs 1,150 crore as basic and performance grant this fiscal.
“We are providing 12.5 percent of our annual net tax collection to the local bodies in Delhi. However, they are not getting any financial support from the Central government,” he said.
“The Delhi government’s demand for its share of about Rs 3,202 crore in the unsettled amount of Rs 1.68 lakh crore of integrated goods and services tax (IGST) which was devolved to the centre and state without Delhi getting any share, has not been addressed in the budget,” the Deputy Chief Minister said.
In the interim Budget in February this year, the Centre had allocated Rs 1,112 crore for Delhi in the Union Budget, while keeping its share in Central taxes and duties unchanged.