Arvind Kejriwal writes to Nirmala Sitharaman, points to Delhi's 'frozen' share in central taxes

economictimes.indiatimes.com:

Finance Commission, Chief Minister Arvind Kejriwal has written to Union Finance Minister Nirmala Sitharaman, pointing to Delhi's «frozen» share in central pool of taxes even as he demanded that Delhi be treated as a «unique case». Alleging «stepmotherly and unfair» treatment by the Centre, Kejriwal said Delhi's share in central pool of taxes was «frozen at astonishingly low» amount of Rs 350 crore for the last 23 years.

«Had Delhi been treated in an unbiased manner, its share would have been Rs 7,378 crore,» he said in his letter to Sitharaman. Kejriwal also said that the Municipal Corporation of Delhi (MCD) has been facing «extreme unjust behaviour» over the last few years, with it receiving nothing from the Central government.

The chief minister said it was understood that since Delhi's name has been removed (for being a Union Territory) from the 'Terms of Reference' of the Finance Commission, it does not fall under the purview of tax devolution and hence, is not treated like other states. «But Delhi is a special case of 'Union Territory with Legislature' and has the character of the state as well, with Delhi managing its finances similar to other states,» he stated.

Kejriwal requested the Union finance minister to consider Delhi as a «unique case» and include it in the 'Terms of Reference' of the 16th Finance Commission, and added it was high time that justice was done and Delhi got its reasonable share similar to what other states get. The Central government is likely to set up the 16th Finance Commission this year to suggest, among other things, the ratio in which tax is to be divided between the Centre and states for five years, beginning April 1, 2026.