The Minister of Finance of Delhi, Mr. Manish Sisodia, presented the Budget for Delhi for the financial year 2017-18 on March 8, 2017.
Budget Highlights
- The Gross State Domestic Product of Delhi for 2016-17 is estimated to be Rs 6,22,385 crore (current prices). This is 13% higher than the estimates for 2015-16. GSDP estimates for 2017-18 are not available.
- Total expenditure for 2017-18 is estimated to be Rs 48,000 crore, an increase of 16.5% over the revised estimates of 2016-17. In 2016-17, the total expenditure was revised to Rs 41,200 crore, a decrease of Rs 5,400 crore (11.6%) from the budget estimates of 2016-17.
- Total receipts (excluding borrowings) for 2017-18 are estimated to be 14.9% higher than revised estimates of 2016-17, at Rs 42,616 crore. In 2016-17, total receipts fell short of the budgeted target by Rs 4,689 crore.
- Arevenue surplus of Rs 3,789 crore is expected in 2017-18, which is lower than the revised estimates of 2016-17, a revenue surplus of Rs 4,846 was observed. Fiscal deficit is targeted at Rs 3,702 crore, as compared to the revised estimate of Rs 2,462 crore in 2016-17. Primary deficit is targeted at Rs 695 crore.
- Allocation towards the development sector (including environment, flood control and irrigation) is expected to increase by 67%, followed by a 24% increase in allocations to medical and public health, and 18% increase in education, over the revised estimate of 2016-17.
- Subsidy for the power sector is expected to be Rs 1,600 crore, an increase of 1.4% over the revised estimates of 2016-17. Subsidy on water is expected to be Rs 353 crore.
- Rs 18,500 crore has been allocated for programmes and projects across all sectors in 2017-18. These include allocations for education, social welfare, urban development and water supply.
Policy Highlights
- Mohalla clinics: The number of Mohalla clinics is proposed to be increased from 150 in 2016-17 to around 1,000 in 2017-18.
- Education: The State Council of Educational Research and Training (SCERT) and District Institutes of Education and Training (DIETs) are proposed to be restructured. Two new DIETs will be opened in Delhi.
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Delhi’s Economy Economy
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Figure 1: Sectoral growth in Delhi (% year-on-year) Note: 2015-16 data is as of July 2016. Agriculture includes mining. Source: Central Statistics Office; PRS. |
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Workforce Participation Worker Population Ratio is the proportion of workers to the total population aged 15 years and above. The ratio for Delhi (2015-16) was 40.8%, lower than 41.8% in 2012-13. Note that in 2015-16, the national average stood at 50.5%. Source: Lok Sabha Unstarred Question No. 682, Answered on February 6, 2017. |
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Budget Estimates for 2017-18
- The total expenditure in 2017-18 is targeted at Rs 48,000 crore. The revised estimates for the total expenditure in 2016-17 was Rs 41,200 crore, which is 11.6% (Rs 5,400 crore) less than the budgeted target of 2016-17.
- The expenditure in 2017-18 is proposed to be met through receipts (other than borrowings) of Rs 42,616 crore and borrowings of Rs 2,856 crore. Total receipts for 2017-18 (other than borrowings) are expected to be 14.9% higher than the revised estimate of 2016-17.
Table 1: Budget 2017-18 - key figures (in Rs crore)
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Items |
2015-16 Actuals |
2016-17 Budgeted |
2016-17 Revised |
% change from BE 2016-17 to RE of 2016-17 |
2017-18 Budgeted |
% change from RE 2016-17 to BE 2017-18 |
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Total Expenditure |
35,196 |
46,600 |
41,200 |
-11.6% |
48,000 |
16.5% |
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Of which: Repayment of loans |
1,435 |
1,987 |
1,655 |
-16.7% |
1,682 |
1.7% |
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A. Borrowings |
2,241 |
3,174 |
3,000 |
-5.5% |
2,856 |
-4.8% |
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B. Receipts (except borrowings) |
35,082 |
41,772 |
37,083 |
-11.2% |
42,616 |
14.9% |
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Total Receipts (A+B) |
37,323 |
44,946 |
40,083 |
-10.8% |
45,472 |
13.4% |
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Revenue Deficit |
8,656 |
5,543 |
4,846 |
-12.6% |
3,789 |
-21.8% |
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(-)/Surplus(+) |
||||||
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Fiscal Deficit |
1,322 |
-2,841 |
-2,462 |
-13.3% |
-3,702 |
50.3% |
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(-)/Surplus(+) |
||||||
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Primary Deficit |
4,132 |
554 |
420 |
-24.1% |
-695 |
-265.4% |
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(-)/Surplus(+) |
Notes: In the absence of estimates of the GSDP in 2017-18, it is not possible to calculate deficits as % of GSDP.
Sources: Delhi State Budget Documents 2017-18; PRS.
Revenue surplus: It is the excess of revenue receipts over revenue expenditure. A revenue surplus indicates an income over expenditure of the government on services provided by it. The government has estimated a revenue surplus of Rs 3,789 crore in 2017-18. For 2016-17, the government has revised its revenue surplus to Rs 4,846 crore, which is 12.6% lower than the budgeted target of Rs 5,543 crore.
Fiscal deficit: It is the excess of total expenditure over total receipts. This gap is filled by borrowings by the government, and leads to an increase in total liabilities of the government. The government has projected a fiscal deficit of Rs 3,702 crore in 2017-18, compared to Rs 2,462 crore in the revised estimates of 2016-17.
Expenditure in 2017-18
- The state government’s expenditure can be divided into (a) capital expenditure, which affects the assets and liabilities of the state, and (b) revenue expenditure, which includes the rest of the expenses.
- Total capital expenditure is proposed to increase by 4.9% to Rs 9,573 crore over the revised estimates of 2016-17. This includes expenditure which leads to creation of assets, repayment of loans, among others.
- Total revenue expenditure for 2017-18 is proposed to be Rs 38,427 crore, which is an increase of 19.8% over the revised estimates of 2016-17. This expenditure includes payment of salaries, administration of government programs, etc.
Table 2: Expenditure budget 2017-18 (in Rs crore)
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Item |
2015-16 Actuals |
2016-17 Budgeted |
2016-17 Revised |
% change from BE 2016-17 to RE 2016-17 |
2017-18 Budgeted |
% change from RE 2016-17 to BE 2017-18 |
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Capital Expenditure |
8,853 |
10,752 |
9,124 |
-15.1% |
9,573 |
4.9% |
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Revenue Expenditure |
26,343 |
35,848 |
32,076 |
-10.5% |
38,427 |
19.8% |
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Total Expenditure |
35,196 |
46,600 |
41,200 |
-11.6% |
48,000 |
16.5% |
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A. Loan Repayment |
1,435 |
1,987 |
1,655 |
-16.7% |
1,682 |
1.7% |
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B. Interest Payments |
2,810 |
3,395 |
2,883 |
-15.1% |
3,006 |
4.3% |
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Debt Servicing (A+B) |
4,245 |
5,382 |
4,537 |
-15.7% |
4,689 |
3.3% |
Sources: Delhi State Budget Documents 2017-18; PRS.
Departmental expenditure in 2017-18
The departments below account for 82% of the estimated expenditure of Delhi in 2017-18.
Table 3: Department-wise plan outlay for Delhi Budget 2017-18 (in Rs crore)
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Department |
2015-16 Actuals |
2016-17 Revised |
2017-18 Budgeted |
% change from RE 2016-17 to BE 2017-18 |
Budget provisions for 2017-18 |
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Urban Development (includes Public Works and Power Department) |
12,390 |
13,661 |
14,847 |
8.7% |
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Education (includes School and Higher Education Departments) |
6,208 |
7,656 |
9,066 |
18.4% |
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Social Welfare (includes Women and Child, Transport and Tourism Departments) |
5,233 |
5,853 |
6,591 |
12.6% |
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Medical and Public Health (includes Health Services and allocations to Medical Colleges and Hospitals) |
3,300 |
4,059 |
5,033 |
24.0% |
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Development (includes Revenue, Environment and Irrigation and Flood Control) |
2,267 |
2,202 |
3,677 |
67.0% |
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Total |
29,397 |
33,431 |
39,214 |
17.3% |
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% of total expenditure |
83.5% |
81.1% |
81.7% |
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Other departments |
5,799 |
7,769 |
8,786 |
13.1% |
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Total expenditure |
35,196 |
41,200 |
48,000 |
16.5% |
Sources: Delhi Budget Speech 2017-18; Detailed Demand for Grants 2017-18; PRS.
Subsidies
The government provides subsidies across various sectors such as power and transport. Some of these subsidies are shown in Table 4.
Table 4: Subsidies in 2017-18 (in Rs crore)
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Subsidy |
Actuals 2015-16 |
Revised 2016-17 |
Budgeted 2017-18 |
% change RE 2016-17 to BE 2017-18 |
Subsidy intended for |
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Power Subsidy |
1,443 |
1,578 |
1,600 |
1.4% |
Subsidy provided for power bills of consumers consuming up to 400 units of electricity |
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Water Subsidy |
190 |
325 |
353 |
8.6% |
Subsidy provided for water free of cost, to households consuming up to 20 kilo litres per month |
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DTC Concessional Pass |
84 |
92 |
92 |
0.0% |
Concessional passes issued to DTC buss commuters |
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Consumer subsidy |
39 |
47 |
71 |
51.1% |
Subsidy provided on sugar and to keep consumer prices under control |
Sources: Detailed Demand for Grants 2017-18; Delhi State Budget Documents 2017-18; PRS.
Receipts in 2017-18
- The total revenue receipts for 2017-18 are estimated to be Rs 42,216 crore, an increase of 14.3% over the revised estimates of 2016-17.
- Tax revenue is expected to increase by 19.3% (Rs 6,270 crore) in 2017-18 over the revised estimates of 2016-17. Non-tax revenue is estimated to increase by 75% (Rs 344 crore).
- Grants-in-aid from the central government, including grants in lieu of central taxes are expected at Rs 2,716 crore in 2017-18, Rs 1,320 crore (33%) less than the revised estimate of 2016-17.
Table 5: Break up of state government receipts (in Rs crore)
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Item |
2015-16 Actuals |
2016-17 Budgeted |
2016-17 Revised |
% change from BE 2016-17 to RE 2016-17 |
2017-18 Budgeted |
% change from RE 2016-17 to BE 2017-18 |
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State's Own Tax |
30,225 |
36,525 |
32,430 |
-11.2% |
38,700 |
19.3% |
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State's Own Non tax |
515 |
996 |
456 |
-54.2% |
800 |
75.4% |
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Grants in aid and contributions |
4,258 |
3,870 |
4,036 |
4.3% |
2,716 |
-32.7% |
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Total Revenue Receipts |
34,999 |
41,391 |
36,922 |
-10.8% |
42,216 |
14.3% |
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Recovery of Loans and Advances |
82 |
379 |
159 |
-58.1% |
397 |
150.0% |
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Borrowings |
2,241 |
3,174 |
3,000 |
-5.5% |
2,856 |
-4.8% |
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Total Capital Receipts |
2,325 |
3,555 |
3,161 |
-11.1% |
3,256 |
3.0% |
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Total Receipts |
37,323 |
44,946 |
40,083 |
-10.8% |
45,472 |
13.4% |
Sources: Delhi State Budget Documents 2017-18; PRS.
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Revenue estimates in 2016-17 In 2016-17, the budgeted estimates for tax revenue as well as non-tax revenue were revised downward. While the state estimated to receive Rs 36,525 crore as tax revenue in 2016-17, the revised estimate was lower by 11.2%, at Rs 32,430 crore. This was mainly owing to a Rs 2,500 crore (10.2%) shortfall in the estimate of revenue from sales tax. Non-tax revenue was estimated at Rs 996 crore, and the revised estimate was 54% lower, at Rs 456 crore. Under non-tax revenue, interest receipts from public sector undertakings were budgeted to be Rs 200 crore in 2016-17, which were revised down to Rs 3 crore. Further, the estimate of interest received from local bodies was revised from Rs 400 crore in 2016-17 to Rs 99 crore. |
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Figure 2: Composition of Tax Revenue in 2017-18 (BE) Sources: Delhi State Budget Documents 2017-18; PRS. |
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- Tax revenue will also be generated through levy of stamp duties and registration fees on real estate transactions and taxes on vehicles, among others.
- Non Tax Revenue: Delhi is expected to generate Rs 800 crore (excluding grants-in-aid from the central government) through non-tax sources in 2017-18. For 2016-17, the government has revised its non-tax revenue estimates to Rs 456 crore, 54% lower than the budgeted target of Rs 996 crore.
- Interest receipts and dividends on loans provided to public sector undertakings and local bodies are expected to be the largest source of non-tax revenue in 2017-18, at Rs 400 crore.
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