Delhi Govt’s expenditure on subsidies rose by 42%, says CAG

Wednesday, 06 July 2022 | Staff Reporter | NEW DELHI

Delhi Govt’s expenditure on subsidies rose by 42%, says CAG

Wednesday, 06 July 2022 | Staff Reporter | NEW DELHI

The Comptroller and Auditor General of India (CAG) highlighted the Delhi Government’s expenditure on subsidies that rose from Rs 1,867.61 crore in 2015-16 to Rs 3,592.94 crore in 2019-20. The expenditure on subsidies has increased by 41.85 per cent over the previous year. The report was tabled in the Delhi Assembly on Tuesday.

The report on Revenue, Economic, Social, General Sectors and PSUs said that of the total expenditure in 2019-20 expenditure on subsidies increased by 41.85 per cent over the previous year.

“Financial assistance to local bodies and others increased by 7.59 per cent from ` 15,087.22 crore in 2018-19 toRs 16,232.97 crore in 2019-20. Of Rs 51,186.26 crore (excluding recoveries of Rs 323.77 crore) during 2019-20, expenditure of Rs16,207.83 crore (31.66 per cent) was incurred in the last quarter whereas ` 2,355.21 crore (14.53 per cent) of the last quarter was incurred during the month of March 2020.

Further, in eight sub-heads under two grants the entire expenditure of ` 428.53 crore was incurred in March 2020,” the report said. According to report, total revenue receipts of the Delhi government for the year 2018-19 were Rs 43,112.60 crore as compared to Rs 38,667.27 crore in the year 2017-18. Out of this, 86 per cent was raised through tax revenue (Rs 36,624.67 crore) and non-tax revenue (Rs 644.16 crore). The balance 14 per cent was received from the Government of India as grants-in-aid (Rs 5,843.77 crore).

“Test-check of the records of 60 units of the Department of Trade and Taxes, Revenue, and Transport conducted during the year 2018-19 revealed underassessment, short levy or loss of revenue and other irregularities involving Rs 521.61crore in 394 cases,” stated the report. “During the course of the year, the concerned Departments accepted underassessment and other deficiencies of Rs 96.32 crore,” the report further added.

“Failure of Delhi State Industrial and Infrastructure Development Corporation to timely assess the income tax liability and consequent non-payment of advance tax resulted in avoidable payment of interest of Rs 3.74 crore,” the report further added.