Millennium Post

Delhi receives Rs 325 cr as share in Central taxes

NEW DELHI: The AAP government's demand for enhanced share in Central taxes remains unfulfilled with the Union Budget on Friday allocating Rs 325 crore to Delhi, the figure remaining the same for the last 18 years. The Delhi government had asked for Rs 6,000 crore as grants in lieu of its share in Central taxes and duties, but has got only a fraction of that.

As per the Budget document, Delhi 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.

In a pre-Budget meeting convened by the Union Finance Minister Nirmala Sitharaman last month, Deputy Chief Minister Manish Sisodia had demanded Rs 6,000 crore for Delhi as the share from the Central taxes. He had said that the city has been getting only Rs 325 crore for the last 18 years.

The issue of Delhi's stagnant share in Central taxes was raised by the AAP government including Chief Minister Arvind Kejriwal during the recently concluded Lok Sabha elections in May.

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.

While the Budget of NCT of Delhi has increased from Rs 8,739 crore in the year 2001-02 to Rs 60,000 crore in 2019-20, the share in Central Taxes has remained frozen at Rs 325 crore since 2001-02.

The transfers to Delhi 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.

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.

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