Analysing The Economy Of Delhi And The Way Forward

Kailash Gahlot, the Finance Minister of Delhi, presented the budget for the fiscal year 2023-24, which is valued at ₹78,800 Crores. The budget included significant announcements for infrastructure improvements, health care, and the energy industry. The Budget was delivered amid controversy over Manish Sisodia’s detention in connection with the now-canceled Delhi Excise Policy scam case.  

The Revised Budget Estimate for the fiscal year 2022-23 is ₹. 72,500 Crores, as opposed to 75,800 Crores in the Approved Budget Estimate. The revised estimate of ₹. 72,500 Croress is 18.52% more than the actual expenditure of ₹. 61,172 Crores in 2021-22. The Revised Estimate of ₹. 72,500 Crores comprises a revenue expenditure of ₹. 53,296 Croress and a capital expenditure of ₹. 19,204 Crores. Establishment expenditure and other committed liabilities are planned to be increased from ₹. 32,200 Croress in the approved budget to ₹. 33,200 Croress in the revised budget.

The Revised Estimates raise the budget for 2022-23 to 33,800 Crores. The Revised Estimates suggest a total of ₹. 38,700 Croress for schemes/projects year 2022-23. The authorized budget estimate was ₹. 43,600 Crores.  The initiative of upgrading and beautifying Delhi roads is being planned with a 10-year horizon and with an anticipated expenditure of ₹. 19,466 Crores. The fiscal deficit for 2023-24 is projected to be ₹10,386 Crores, more than double the revised forecasts for 2022-23 (₹4,359 Crores).  According to updated forecasts, the budget deficit in 2022-23 will be 0.4% of GSDP, which is smaller than the 0.8% amount in 2021-22.

According to CAG report (2022), the Delhi government spent ₹ 3,593 Crores on subsidies in 2019-20.  This was a 14% yearly growth over 2015-16 (₹ 1,868 Crores).  The government has earmarked ₹ 3,250 Crores for power subsidies and ₹ 600 Crores for water subsidies in 2023-24. The Gross State Domestic Product (GSDP) of Delhi is expected to be ₹ 10.4 lakh Crores in 2022-23 (at current prices), representing a 15.4% increase over 2021-22.

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Author: Nehashree Verma