Centre’s Rs 1,112 cr to Capital disappoints Kejriwal

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Centre’s Rs 1,112 cr to Capital disappoints Kejriwal

Saturday, 02 February 2019 | Staff Reporter | NEW DELHI

Union Government on Friday allocated Rs 1,112 crore for Delhi while keeping its share in Central Taxes and duties unchanged in Budget 2019- 20 (Interim) presented by the Finance Minister Piyush Goyal in Parliament. 

Notably, in previous budget, Centre had allotted a total of 790 crore while Central assistance to city Government was Rs 499.99 crore.

Like every year, this year too, Rs 10 crore has been given to Aam Aadmi Party (AAP) Government for paying enhanced compensation to the 1984 riot victims, the Central Government also grants allocation of Rs 5 crore for the Delhi Disaster Response Fund.

Reacting on the amount given to Delhi, Chief Minister Arvind Kejriwal said it has disappointed the city.

Terming the Budget as "Jumla" of Narendra modi led BJP Government, Kejriwal tweeted, "Final jumla of Modi Govt: it's interim budget too completely disappoints Delhi. Our share in central taxes remains frozen at Rs 325 crore & nothing earmarked for local bodies. Delhi continues  to be on its own financially (sic)."

In his series of reactions on tweeter, he said,  "1. Invest heavily in edu n health 2. Increase min wages n enforce it 3. Give crop prices 1.5 times cost 4. One time farm loan waiver. This wud put money in pocket of poorest, create demand, give boost to economy n create jobs. None of it done in budget (sic)."

"The BJP Government at the Centre has given step-motherly treatment to the people of Delhi. From 2001, the Centre is giving only Rs 325 crore to the Delhi

Government despite getting lakhs of crores of rupees collected as taxes. As per the Finance Commission recommendation, it should be around Rs 70,000 crore," AAP spokesperson Raghav Chadha said. The Delhi Government has been given Rs 472 crore as central assistance in the interim Budget for 2019-20 presented by Goyal in Parliament.

In the previous budget, the Centre had allotted a total of Rs 790 crore. The central assistance to the city government was Rs 499.99 crore.

Deputy Chief Minister Manish Sisodia, who heads the finance department of the Delhi Government, complained of nominal increase in central assistance.

In the interim Budget, the share in central taxes of Delhi has not been increased from Rs 325 crore which is stagnant since 2001-02, he said in a statement.

"The Delhi Government deserves its legitimate share in central taxes to finance various developmental projects. We had requested the Government of India a number of times to enhance the allocation to at least Rs 6,000 crore as share in central taxes as against Rs 325 crore being released to Delhi," Sisodia said.

The budget of Delhi has increased from Rs 8,739 crore in the year 2001-02 to Rs 53,000 crore in 2018-19, whereas the share in central taxes has remained frozen at Rs 325 crore since 2001-02, he said.

The Delhi deputy chief minister also claimed the Centre has not allocated any funds to the local bodies in Delhi though it was requested for by the Kejriwal Government.

"No funds have been earmarked to local bodies in Delhi although we had requested for allocation of at least Rs 1,000 crore as basic and performance grants to them in 2018-19 (revised estimates) and Rs 1150 crore in 2019-20 (budget estimates)." Sisodia said, the Delhi Government had requested the Centre to enhance the normal central assistance to Rs 1,500 crore in 2019-20, but it has declined by two percent points, although the expenditure of the government on its schemes has increased to Rs 22,000 crore.

"We had requested (the Centre) to increase the normal central assistance to at least Rs 1,300 crore in the current year revised estimate and Rs 1,500 crore in 2019-20 budgetary estimates. However, an amount of Rs 472 crore as an additional central assistance has been proposed in 2019-20 as against Rs 450 crore in the current year," he said.

An amount of Rs 10 crore each has been proposed under 2018-19 (RE) and 2019-20 (BE) as reimbursement of compensation to 1984 riot victims to Delhi government, the deputy chief minister said.

The Rs 5 crore proposed for the Delhi government as an assistance for the Delhi Disaster Response Fund is negligible, he said.

The figure of Rs 1,112 crore shown in 2019-20 (Budget Estimates) is mainly due to loan taken from the Japan International Cooperation Agency (JICA) under the externally aided project for a water treatment plant at Chandrawal. However, on all other parameters, it is more or less at the same level, Sisodia said in a statement.

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