On Tuesday, Delhi's Chief Minister, Rekha Gupta, is set to present the much-awaited budget. Today marks the commencement of Delhi's budget session, which will extend until March 28. CM Rekha Gupta has unveiled the blueprint of the budget, aptly dubbed the 'Developed Delhi Budget.' The core aim is to focus on women’s economic empowerment, enhancing education and health services, infrastructure improvements, pollution control, and tackling waterlogging issues. But how exactly is Delhi's budget crafted? How much aid does it receive from the center, and what are Delhi's primary income sources?
Delhi, a union territory, has its administration shared between both the central government and the state. The state government prepares Delhi’s budget, though central influence is undeniable. It governs expenditures and revenue, primarily allocating funds to developmental projects, education, health, transportation, police, and other essential services.
What Support Comes from the Center?
Financial aid to Delhi from the center largely depends on national policies and schemes. The main source of assistance is through central plans and funding. Delhi benefits from several key central initiatives, like the Clean India Mission and the Prime Minister’s Housing Scheme.
Delhi's Key Revenue Streams
Delhi's primary revenue stems from state-generated income. Taxes and fees filed with the Delhi government are pivotal revenue sources. The largest financial contributor is tax revenue, which includes VAT (Value Added Tax), Property Tax, Income Tax, Stamp Duty, and Road Tax. As one of India's largest trade hubs, business activity in Delhi significantly boosts tax-derived income. Approximately 70% of the budget's total allocation is derived from tax revenue, and significant income also comes from land and property transactions.
A Glimpse of Previous Budgets
Previously, Atishi, Delhi's then-CM, presented a 760 billion rupees budget. She noted Delhi's population is merely 1.55% of the national count, yet its contribution to the GDP is more than double. Currently, all eyes are on BJP's forthcoming budget. During elections, numerous plans were announced, raising curiosity about their inclusion in this budget.
