The Arvind Kejriwal Government has urged Union Finance Minister Arun Jaitley to increase the Delhi’s Budget allocation by at least Rs5,000 crore in addition to Rs1,000 crore as Basic and Performance Grants to the local bodies. In a letter to Jaitley, Chief Minister Arvind Kejriwal said the additional budgetary allocation was required to provide civic facilities in unauthorised colonies and unplanned settlements, improve education and health infrastructure, contain air and river pollution, ensure uninterrupted power and drinking water supply in the national Capital.
Kejriwal said the Delhi Government’s budget has increased from Rs8,793 crore in 2001-02 to Rs41,129 crore in 2015-16, but its share in Central taxes remained frozen at Rs325 crore since 2001-02. On the other hand, he also said the tax devolution to neighbouring States like Haryana and Punjab has substantially increased. “Haryana’s share has been increased from Rs15,200 crore to Rs42,798 crore and that of Punjab from Rs20,146 crore to Rs62,263 crore during the said period.”
The Chief Minister said the Delhi Government has been deprived of its rightful share in funding from Central taxes, basic grants and performance grants to local bodies as recommended by the 14th Central Finance Commission. “This directly impinge on the financial capacity of the Government of National Capital Territory of Delhi to implement its development projects and welfare measures for the people of Delhi.”
The letter said the Delhi Government has a separate consolidated fund from which all financial transactions of the administration, like other States are incurred. It said the City Government, as other States, is required to defray all developmental, welfare and routine housekeeping expenses from its own resources.
Kejriwal has pointed out that his Government does not have access to most valuable resources like land, whose proceeds are retained by the DDA. He said the City Government meets its budgetary needs through VAT, Excise and Stamp Duty, whereas cities and other States have access to resources devolved based on the recommendations of the 14th Central Finance Commission. In addition, he said, the City Government can only avail loan from the National Small Saving Fund and is prohibited from accessing debt from financial institutions and market borrowing under 47A of the Government of NCT of Delhi (Amendment) Act, 2001. “Consequently, GNCTD’s budget has been limited due to the current policy of sharing of resources by the Centre.”
Kejriwal stated that being the Capital of the country and one of the fastest metropolises, Delhi’s claims on its resources were immense and varied. He said, “While the Government of NCT of Delhi has to maintain infrastructure that meets world standards, it also has to improve supply of civic amenities to the burgeoning population who legitimately expect employment and a fulsome life in the Capital. “Consequently, large investments in education, health, social, food securities, transport, roads and hospitals have to be made.”