Delhi should get its share of taxes from Centre, says Atishi Singh
₹2 trillion in income tax (to the union government). Delhi is one of the engines of growth for the national economy. We are not saying give us everything that Delhi gives, but give us something.
If funds do not come for Delhi’s development, it is akin to killing the goose that lays the golden egg," the minister said. The Sixteenth Finance Commission is expected to recommend a formula for devolution of a part of the tax collected by the union government to states for the five years from FY27. The minister’s demand comes a day after she presented a ₹76,000-crore state budget for FY25, slightly bigger than the FY23 budget of ₹74,900 crore but without the aid of the union government’s tax devolution or GST compensation.
FY25 will be the first year without GST compensation but the state still managed to increase the budget size without having to borrow, she said. The modest increase in the state budget for FY25 comes after a 16.83% jump in the budget size in FY23. The Delhi state budget, presented by Singh on Monday, showed that GST compensation from the union government for the state’s losses from implementing the 2017 indirect-tax reform is no longer a revenue stream for the state.
In FY23, the state received ₹12,917 crore as GST compensation. In FY24, it had budgeted ₹3,800 crore as GST compensation, but was revised down to ₹1,500 crore, the receipt budget showed. Singh said the state still managed to increase the budget in FY25, which “actually means there's been record growth in revenue".
The minister also said the state had not resorted to taking debt to meet any revenue deficit. The state has projected a tax-revenue increase of 6.4% in FY25 to ₹58,750 crore over the revised estimates for FY24. The minister said revenue
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