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Delhi Govt response on Union Budget, 29th February 2016

Home/ Delhi Govt Response On Union Budget, 29th February 2016

DIRECTORATE OF INFORMATION & PUBLICITY
GOVERNMENT OF DELHI
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New Delhi: 29/02/2016

  • Delhi government response to the Union Budget for the financial year 2016-17 presented in the Parliament by the Union Finance Minister Mr Arun Jaitley on Monday :

1. No Increase in Share in Central Taxes :

In the Union Budget 2016-17, the share in Central Taxes of Delhi has not been increased from ` Rs 325 crore which is stagnant since 2001-02. The Delhi government deserves its legitimate share in Central Taxes to finance various developmental projects. We had requested the Government of India a number of times to enhance the allocation to at least Rs 5000 crore as share in Central Taxes as against Rs 325 crore being released to Delhi. The Budget of Delhi has increased from Rs 8739 crore in the year 2001-02 to Rs 41,129 crore in 2015-16, whereas the share in Central Taxes has remained frozen at Rs 325 crore since 2001-02.

2. No Amount given to Local Bodies :

In the Budget 2016-17, Government of India has not earmarked any funds to Local Bodies in Delhi although we had requested for allocation of at least Rs 1000 crore as basic and performance grants to Local Bodies in Delhi. We are providing 10.5% of our annual tax collection to the Local Bodies, however, the Local Bodies in Delhi are not getting any non-plan support from the Government of India.

3. Assistance to Delhi Disaster Response Fund :

In the Union Budget 2016-17, an amount of mere Rs five crore as a Non Plan Grant has been proposed as an assistance for Delhi Disaster Response Fund which is negligible. It is unfortunate since Delhi falls in high seismic zone and it was hoped that the central government will bear this important fact in mind while making allocations under this head, but that eventually did not happen.

4. Nominal Increase in Normal Central Assistance :

The Normal Central Assistance has increased only by Rs 18 crore (4.6%) i.e. from Rs 394.98 crore in the current year BE to Rs 412.99 crore in the next year BE.
The Normal Central Assistance to Delhi during 2000-01 was Rs 370 crore and still after 16 years it is proposed only at Rs 412.99 crore in the year 2016-17.
However, the plan expenditure of Delhi has increased by six times from Rs 3129 crore in 2000-01 to Rs 19000 crore in 2015-16. The Normal Central Assistance which was 11.8% of the Plan expenditure in 2000-01 has declined to 2.07% in 2015-16.
We had requested to increase the Normal Central Assistance to at least Rs 1000 crore in the current year RE and Rs 1500 crore in 2016-17 BE. However, in the Budget, an amount of Rs 49.90 crore as an Additional Central Assistance has been proposed in the Revised Estimate of current year as a share of Government of India for construction of new Office Building (S-Block) of Delhi High Court.

5. Reimbursement of Enhanced Compensation to 1984 Riot Victims :

Delhi government has already paid about Rs 76 crore as enhanced compensation to 1984 riot victims in the current year. However, in the Union Budget 2016-17, an amount of Rs 10 crore in the current year and Rs 15 crore in the next year has been proposed for reimbursement to Delhi government. (ENDS)


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