‘Hope earnings will improve with GST’
NEWDELHI: The Delhi government has done a downward revision of both its expenditure and revenue collection targets for the fiscal year 2017-18.
According to the figures given in the 2018-19 Delhi budget, revised estimate (RE) figures for total expenditure and revenue collection are 7.6% and 5.4% short of the budget estimate (BE) figures given in the 2017-18 budget. Actual figures for 2017-18 would be given in next year’s budget. 2018-19 BE figures promise an increase of 19.5% and 14.8% in expenditure and revenue compared to 2017-18 RE figures.
Deputy chief minister Manish Sisodia was optimistic about achieving the 2018-19 expenditure and revenue targets. “Until now, the service sector which comprises more than 85% of Delhi’s Gross State Domestic Product (GSDP), was not under the taxable bracket. Now with GST, this sector will be completely taxable. So we hope our earnings to improve,” he said.
Among major revenue heads, a comparison of RE over BE figures shows that there was extra collection of taxes on vehicles and lower collection from state excise (primarily liquor) and taxes on property and capital transactions. Because of the implementation of GST, other tax heads cannot be compared.
The government said the downward revision was also because of inadequate funds from the Centre. “Revenue estimates were not as high. But this also happened because the kind of Centrally Sponsored Schemes which Delhi had claimed were not accepted,” said SN Sahai, principal secretary (finance).
Other statistics given in the budget speech underline Delhi’s above par economic performance compared to others. Delhi’s GSDP growth at constant prices in 2017-18 is expected to be 8.14% against the national average of 6.6%. Delhi’s debt-gsdp ratio stood at 5.03% in 2017-18, which is the lowest in the country according to the budget speech.
Despite budgetary allocation, the govt has not started working on 50 schemes, which were announced earlier. VIJENDER GUPTA, Leader of Opposition, Delhi Assembly