CAG flags fiscal slippage, sharp fall in capital spending

New Delhi: The financial state of the national capital came under scrutiny as Delhi Chief Minister Rekha Gupta presented the Comptroller and Auditor General’s (CAG) audit report for 2023-24 in the Assembly, marking the beginning of the Monsoon Session.

According to the report, Delhi’s financial position saw a dramatic reversal, shifting from a fiscal surplus of Rs 4,566 crore in 2022-23 to a deficit of Rs 3,934 crore in 2023-24. The CAG attributed the shortfall to expenditure levels surpassing the state’s revenue-generating capacity during the previous administration’s tenure.

The revenue surplus, too, declined by over 55 per cent, falling from Rs 14,457 crore to Rs 6,462 crore within a year. Despite this, Delhi’s economy remained resilient, with its Gross State Domestic Product (GSDP) registering a 9.2 per cent growth in 2023-24. Over five years, Delhi’s GSDP rose steadily from Rs 7.9 lakh crore to Rs 11.1 lakh crore, averaging 8.8 per cent annual

growth. Budget outlays also expanded from Rs 64,180.7 crore to Rs 81,918.2 crore, growing at an average rate of 7.1 per cent annually.

However, capital expenditure, essential for long-term infrastructure and public services, remained a concern. The report revealed that such spending consistently stayed below 1 per cent of GSDP over the last five years. In 2023-24, capital outlay declined by 15 per cent, with critical sectors taking major hits, spending in health fell by nearly 50 per cent, while education and public works dropped by over 40 per cent each.

The audit also noted a sharp fall in capital receipts, which plummeted from Rs 5,588 crore in 2019-20 to just Rs 98 crore in 2023-24. Financial aid from the Centre followed a similar downward trend, with its share in Delhi’s revenue shrinking from around 20 per cent to 3.7 per cent over the five-year period. In 2023-24, only Rs 955 crore was received under centrally sponsored schemes. Subsidies remained a growing expense, rising to Rs 4,840 crore in 2023-24, with power subsidies alone accounting for over 70 per cent of the total.

The CAG report flagged under-utilisation of funds in several departments and recommended more accurate budgeting, stricter expenditure monitoring, and timely policy execution. The report will now be reviewed in detail by the Public Accounts Committee, as directed by Assembly Speaker Vijender Gupta.