New Delhi: Presenting a total budget outlay of 75,800 crores, mainly for a pollution free modern Dehi, the state finance minister Kailash Gahlot raised his voice against the centre and said that central government is showing a step-motherly attitude towards the people of Delhi and are depriving them of their legitimate rights. Gahlot in his budget speech alleged that the state is supposed to get 6400 crores from the central pool but from this year they will get nothing and this will put additional pressure on the state exchequer.
“The central government's allocation for Delhi has been a paltry Rs 325 crores for the past eight years, with no changes. Even though Delhi contributes an income tax of 1.75 lakh crore, the central government reduced its share in central taxes to zero for 2023-24. This shows the step-motherly treatment of the central government towards Delhi, and it is clear that the city is being discriminated against in terms of funding,” Gahlot said.
Also Read: Delhi Budget: Government allocates 21000 crores for pollution free Delhi
The norm is that the states get 42 percent of the revenue generated by the state, and following this pattern, Delhi should be getting Rs 6400 crore but the government has been receiving only Rs 325 crore for the last eight years, which has now been reduced to zero. The situation is compounded by the fact that the GST compensation that was supposed to be given to the states for five years has also been stopped. This has further aggravating Delhi's financial problems. With the decline of revenue, the budget is running a deficit of Rs 12000 crore, making it challenging to meet the city's financial obligations.
Kailash Gahlot raised the issue of the central government contributing less to Delhi, and the Delhi government has demanded that the compensation for the losses caused by COVID-19 be continued for the next five years. The centre’s decision to reduce funding for Delhi is not only affecting the city's infrastructure but also causing a severe financial strain. The city needs substantial investment to become a modern and liveable city, and without adequate funding, it will be challenging to achieve this goal. The centre must recognize the significant contribution that Delhi makes to the country's economy and provide the city with the resources it needs to develop into a world-class city.
