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LATEST NEWS UPDATES | AAP budget paves way for subsidies, curbs spending

AAP budget paves way for subsidies, curbs spending

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published Published on Mar 25, 2015   modified Modified on Mar 25, 2015
-The Times of India

NEW DELHI: Promising to bring a full budget with plans and schemes based on public suggestions around May, the Aam Aadmi Party government on Tuesday sought a vote on account for three months on the total budget estimates of Rs 37,750 crore for 2015-16. Voting will be done on Wednesday. A larger non-plan outlay of Rs 21,500 crore and a smaller plan size of Rs 15,350 crore in the proposed budget estimates reflect the financial challenge before the government which will need to increase revenues to deliver on its vast development and welfare agenda.

The state has fallen short of its revenue target by Rs 4,600 crore this financial year

While the AAP government has blamed the BJP-led Centre for the shortfall during President's Rule, BJP and Congress say, by reducing its plan size for the coming year, the government will only hobble its infrastructure plans.

Deputy chief minister Manish Sisodia, who tabled the budget for a vote on account on Tuesday, is likely to discuss the government's vision for increasing revenue generation in the House on Wednesday.

The revenue shortfall shows in the revised budget estimates for 2014-15 and the proposed outlay for the new financial year. Parliament had approved regular budget estimates of Rs 36,766 crore for Delhi in 2014-15. Plan expenditure was estimated to be Rs 16,700 crore and non-plan expenditure Rs 19,066 crore.

Sisodia told the house that only 61% of the plan budget was utilized by February 2015 and the revenues had also declined.

"Accordingly, I propose to reduce the plan size to Rs 15,450 crore and non-plan expenditure to Rs 18,440 crore in the revised estimates," he said.

A break-up of revenues shows shortfall of Rs 2,600 crore in value added tax collections, Rs 50 crore to Rs 100 crore in luxury tax, roughly Rs 1,000 crore in stamp duty on registration of properties and documents and Rs 50 crore in excise.

Against this backdrop, the government has been cautious while making its budgetary outlay. While non-plan expenditure is up to Rs 21,500 crore to accommodate power and water subsidies of Rs 1,670 crore, the plan expenditure has been kept below the revised estimates for the current fiscal at Rs 15,350 crore.

Officials in the finance department point out that since this budget is just a vote on account the plan size has been kept small in keeping with the revised estimates for the current fiscal. Once the final budget is ready with plans, projects and new schemes, the plan size can be increased. However, for that to happen the government will have to first look for ways to boost revenue generation.


The Times of India, 25 March, 2015, http://timesofindia.indiatimes.com/city/delhi/AAP-budget-paves-way-for-subsidies-curbs-spending/articleshow/46682295.cms


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