Millennium Post

Delhi's debt problem well under control

Delhis debt problem well under control

NEW DELHI: The Delhi government's debt burden was "well under control" and the projected fiscal deficit for 2018-19 was Rs 3,164.45 crore, according to the Economic Survey 2018-19 tabled in the Assembly on Saturday.

Deputy Chief Minister Manish Sisodia tabled the report in the Assembly during the budget session.

According to the report, the Delhi government had an outstanding debt of Rs 25,338.96 crore in 2007-08, which was equal to 16.79 per cent of its gross state domestic product (GSDP). In 2017-18, the outstanding debt has increased to Rs 33,569 crore.

It says the debt-GSDP ratio had declined substantially to 4.86 per cent and the ratio of interest payment to revenue receipts also declined to 7.42 per cent in 2017-18 from the high ratio of 16.79 per cent in 2007-08.

"This clearly indicates that the debt problem is well under control," says the report.

The outstanding debt of the government was Rs 33,568.71 crore at the end of March 2018, including the power sector loan amounting to Rs 3,326.39 crore received during 2013-14. As a result of this outstanding debt, the Delhi government has paid an amount of Rs 2,870.67 crore as interest and Rs 1,682.43 crore as repayment of principal to the government of India during 2017- 18.

The decision regarding the payment of Rs 3,326.39 crore received as non-plan loan from Government of India during 2013-14 is yet to be finalised as the Delhi government has been requesting the Centre to convert the amount into grant-in-aid.

The Delhi government had a fiscal surplus of Rs 113.27 crore during 2017-18 (provisional). However, there was a fiscal deficit of Rs 1,050.51 crore during 2016-17 due to the requirement of funds to cater to developmental needs, report says.

The government has projected the fiscal deficit of Rs 3,164.45 crore during 2018-19 (budget estimate), which is 0.41 per cent of GSDP.

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