The state government will spend ₹75,800 crore for the financial year 2022-23, Finance Minister Manish Sisodia said while presenting his eighth budget at the Delhi assembly on March 26. Of this amount, 29% will be spent on capital expenditures (activities that create productive assets for the future).
The share of capital spending this year is an improvement from 2021-22, when it was 25%.
Of the budgeted expenditure, 62.9% will come from the State’s own tax revenue.
“In the current fiscal year through February 2022, we have collected ₹35,112 crore (in taxes), with a 39% increase from the previous year (until Feb 2021),” Sisodia said in his speech, suggesting that Delhi’s revenue situation has recovered from the disruption caused by the pandemic.
“The budget of ₹75,800 crore in the year 2022-23 is proposed to be mainly funded by [Delhi’s] own resources. The main components are ₹47,700 crore from its own tax revenue, ₹1,000 crores of non-tax income, ₹325 crore as share of central taxes, ₹10,000 crore from small savings loans, capital receipts from ₹802 crore, GST compensation of ₹ 10,000 crore, ₹1,621 crores from a centrally sponsored program, ₹643 crore as normal grant/assistance from central government,” Sisodia said in his speech.
The real GSDP of Delhi [gross state domestic product] growth should be 10.23% in 2021-22, indicated the Sisodia economic study presented on March 25. This means Delhi’s GSDP will be 6% higher than pre-pandemic (2019-20) levels.
The Budget Speech and Budget Highlights documents, which were the only documents available until noon, did not give a budget deficit figure or ratio for the state for 2021-22 or 2022-23.
Although the total expenditure budgeted for 2022-23 is significantly higher than the 2021-22 budget forecast (BE) of ₹69,000 crore, Revised Estimates (RE) show that in 2021-22 the government ended up spending ₹2,000 crore less than BE value.
“Delhi’s real GDP contribution to GDP at the national level fell from 3.94% in 2011-12 to 4.21% in 2021-22, while Delhi accounts for only 1.52% of the country’s total population “, Sisodia said in his speech. .
Sisodia said that the services sector is the major contributor to Delhi’s economy and its contribution to the state’s gross value added at current market prices is 83.94%. The contribution of the secondary sector is 13.78% and that of the primary sector 2.28%.
“The most important step to be taken to raise the income of Delhi residents to equal that of Singaporeans by 2047 is to secure more citizens in respectable employment. Therefore, as a first step towards realizing the envisioned dream for 2047, I presented the Rozgar budget to this House,” Sisodia said in his speech.
Debolina Kundu, a professor at the National Institute of Urban Affairs, said: “The 22% spending on education is a welcome approach. However, given the pandemic situation, a higher health and social expenditure would have been appreciated. Various new development initiatives such as Business Blasters in Schools Program, Startup Policy, Green Jobs Promotion Programs, Smart Urban Agriculture, and Food Truck Policy will improve the overall socio-economic health of NCT. Rozgar Bazar 2.0 is a milestone in providing 100,000 jobs every year to Delhi’s youth, especially women.