Tax collection growth in Delhi falls to 2.7% in 2014-15
June, 25th 2015
Tax collection of Delhi government registered a growth of 2.64% in 2014-15 down from 10.61% in 2013-14, as per the Economic Survey tabled by the government.
As per the survey, stamps and registration fees recorded negative growth of 4.34% in 2014-15. Tax collections under Motor Vehicle Tax, State Excise and VAT recorded a growth of 10.61%, 8.59% and 2.03% respectively.
Luxury Tax, Entertainment Tax, Betting Tax, etc registered a growth of 6.2% during 2014-15. Entertainment tax including Cable TV Tax recorded the lowest growth of 3.28% during 2014-15.
The fiscal deficit of Delhi during 2014-15 was at Rs 221.25 crore which is 0.049% of GSDP as compared to the estimated all states figure of 2.35% of GDP during 2014-15 (BE).
Unlike earlier Central Finance Commissions, Delhi has not been covered under the recommendations of 14th Central Finance Commission (14th CFC) whose term covers the period from 2015-16 to 2019-20, thus losing out on dispensations like share in Central Taxes, Grants-in-aid for Local Bodies on account of basic and performance grants, grants for Calamity Relief, revenue deficit gap grants etc.
Now, Delhi only gets discretionary grants in lieu of share in Central Taxes and that too is stagnant at Rs 325 crore since 2001-02.
Delhi has maintained it is consistent revenue surplus at Rs 6,079.53 crore in 2014-15 up from Rs 5,614.16 crore in 2013-14.
Delhi's revenue surplus was 1.35% of GSDP in 2014-15 as compared to all states figure of 0.43% of GDP for 2014-15 (BE).
The survey report mentioned that Delhi Jal Board (DJB) has succeeded in meeting their operating expenses from 2010-11.
The Municipal Corporation of Delhi (MCD) was trifurcated inheriting debt liabilities in view of poor financial conditions of erstwhile MCD.
The Delhi Government provided a Non Plan loan of Rs 1,000 crore in 2012-13 and Rs 250 crore in 2013-14. During the year 2014-15, Delhi government has not supported loan facilities to the Municipal Corporations of Delhi.
As per economic survey, Delhi's outstanding debt at the end of March 2015 was Rs 29,171.71 crore excluding the non-plan loan received during 2013-14 from Government of India. Thus, the outstanding debt of Delhi
Government constitutes 6.47% GSDP during 2014-15 as against the estimated figure 21.2% in case of all states during 2014-15 (BE).
The flow of Central Assistance (CA) to Delhi has decreased from Rs 861.81 crore in 2012-13 to Rs 717.81 crore in 2013-14.
Such reduction in Central Assistance in 2013-14 is mainly because of the reduction on account of release of normal central assistance, special grant for JNNURM and non release on account of Vegetable Initiatives for Urban Cluster (VIUC), a sub scheme of Rashtriya Krishi Vikas Yojana (RKVY).