Delhi Budget 2023-24: Key points to look out for and controversy involved
- On Wednesday, the Delhi administration presented its Budget document, one day later than the scheduled tabling in the Assembly.
- The Delhi Budget for the year 2023-24, presented by Finance Minister Kailash Gahlot, largely focused on the theme of ‘Clean, Beautiful, and Modern Delhi.’ The proposed budget is worth Rs 78,800 crore, which is almost two and a half times the expenditure of Rs 30,940 crore in 2014-15 and 8.69 per cent higher than the revised estimates for 2022-23.
- Out of the total budgeted estimate of Rs 78,800 crore for 2023-24, Rs 56,983 crore is allocated for revenue expenditure, and an outlay of Rs 21,817 crore is set for capital expenditure. This year’s budget has raised the share of capital expenditure by 27.68 per cent of the overall budget. The proposed capital expenditure of Rs 21,817 crore is nearly three times the capital outlay of Rs 7,430 crore in 2014-15.
- The Arvind Kejriwal-led administration aims to launch one of the most ambitious and comprehensive plans in Delhi’s history through this budget, with the goal of transforming the city into a ‘clean, beautiful, and modern’ place. The ambitious theme will be executed through nine major schemes proposed in the budget.
- As part of the biggest-ever effort in Delhi’s history, the city aims to upgrade and beautify 1,400 km of the entire PWD road network, with an estimated expenditure of nearly Rs 20,000 crore over 10 years. The Budget document revealed that 28 flyovers were completed in the last eight years, and construction of another 26 new flyovers is currently underway. The ongoing projects include the Barapullah Phase 3 flyover from Sarai Kale Khan to Mayur Vihar and the elevated road at Najafgarh Phirni.
- As part of its plans, the city administration intends to construct three double-decker flyovers in collaboration with DMRC at Bhajanpura to Yamuna Vihar, Azadpur to Rani Jhansi intersections, and from Saket to Pul Prahaladpur. These flyovers will feature vehicles on the lower deck and Metro rail on the upper deck. Additionally, the budget proposes the introduction of 1,600 new zero-emission electric buses next year. The proposal is part of a larger plan to include a total of 8,280 electric buses (80 per cent of the total fleet) by 2025, with a financial outlay of Rs 28,500 crore over 12 years.
- Delhi will introduce a dedicated last-mile connectivity scheme called the ‘Mohalla Bus’ scheme for the first time next year, featuring 100 smaller (nine-meter length) electric buses. The initiative will scale up to 2,180 ‘Mohalla Buses’ by 2025. Furthermore, all 57 existing bus depots in the city will undergo electrification to make them ready for the induction of electric buses, with an estimated cost of around Rs 1,500 crore.
- To modernize the transport infrastructure in Delhi, the city plans to set up three modern Inter-State Bus Terminals (ISBTs) at Sarai Kale Khan, Anand Vihar, and Dwarka, featuring airport-like amenities. These terminals will be called “Bus Ports.” Additionally, the city will construct two multi-level bus depots with parking up to six levels, two modern bus terminals, and nine new bus depots.
- The Delhi government has also proposed to install 1,400 new and modern bus queue shelters in the city, equipped with digital screens displaying real-time information about bus arrivals through the modern Passenger Information System (PIS). Additionally, a six-point action plan has been proposed for cleaning up the Yamuna river, which includes the rapid expansion of the sewer network to all colonies and clusters.
- As part of the plan to clean up the city, the Delhi government has announced its intention to almost double the number of unauthorised colonies connected to the sewer network, from 747 to 1,317 colonies, in the next year. Free household sewer connections will also continue to be provided to residents of Delhi. Additionally, the government plans to collaborate with the Municipal Corporation of Delhi (MCD) to provide financial assistance for the removal of Delhi’s three garbage mountains, including the Okhla landfill by December 2023, the Bhalaswa landfill by March 2024, and the Ghazipur landfill by December 2024.
- The Delhi government’s Budget for 2023-24 allocates the highest share of funds to the education and health sectors. Education has been allotted Rs 16,575 crore (21 per cent), while health has been allocated Rs 9,742 crore (12 per cent). The Budget also proposes to provide new tablets to all teachers, including regular, guest and contractual, as well as vice-principals, principals and DDEs of Delhi government schools.
- The Budget for 2023-24 in Delhi proposes several significant initiatives in the Health sector. Free testing facilities at Mohalla Clinics will be expanded from 250 to 450, and new Aam Aadmi Mohalla Clinics will be established at Metro stations. The number of Mahila Mohalla Clinics will also be increased from four to 100 in the coming year. Additionally, the government plans to increase the number of available beds in Delhi government hospitals from 14,200 to 30,000 as part of an expansion plan.
- According to recent reports, the Delhi government is set to complete the revitalization of 20 lakes in the coming months. However, there was some friction ahead of the Budget when the Aam Aadmi Party (AAP) accused the Union Ministry of Home Affairs of stalling it. It is believed that Delhi Lieutenant Governor Vinai Kumar Saxena had made certain observations on the Budget, which prompted the MHA to request the AAP-led government to resubmit the Budget, addressing these concerns. One of the concerns raised was the Centre’s request for clarification on the Delhi government’s expenditure on advertisements before approving the presentation of the Budget.
- It is important to note that Delhi’s Budget is subject to approval by the Home Ministry and can only be presented in the Delhi Assembly once it is approved. On Monday, the Status Report of Outcome Budget and Economic Survey for 2022-23 was presented in the Assembly. According to the Economic Survey, the Per Capita Income of Delhi at current prices for 2022-23 is estimated to be Rs 444,768, showing a growth of 14.18 per cent from the previous year. The Economic Survey provides information on the progress of different departments and the state of the economy and is presented annually during the Budget Session before the Legislature.
- According to the Economic Survey for 2022-23, Delhi’s Per Capita Income has consistently been around 2.6 times higher than the national average, both at current and constant prices. The survey also provides an indication of what to expect from the upcoming Budget, which is usually presented a day after the survey. It notes that Delhi’s economy is primarily driven by the service sector, which contributed 84.84 per cent to the Gross State Value Added at current prices in 2022-23, followed by the Secondary Sector at 12.53 per cent and the Primary Sector at 2.63 per cent.
- According to the Economic Survey for 2022-23, the service sector is vital to Delhi’s economy in terms of employment generation and state income. The survey also stated that the Advance Estimate of GSDP of Delhi at current prices during 2022-23 is expected to reach Rs 1,043,759 crore, indicating a growth of 15.38 per cent from the previous year. With the successful vaccination drive in Delhi and the economy returning to normalcy, there are hopes of a robust recovery in the services sector, consumption, and investment. The Outcome Budget 2022-23 covered 23 major departments, and the progress indicators were defined for the major programs and schemes under each department. Delhi NCT finance minister Kailash Gahlot had mentioned that the government tracks each flagship scheme through two indicators, the Output Indicator and the Outcome Indicator, making it the first government to start the outcome budget.
- The BJP has accused Delhi’s Finance Minister, Kailash Gahlot, of leaking budget allocations to the media, and is demanding his resignation for a “breach of privilege”. Meanwhile, the AAP has accused the Centre of conspiring to stall Delhi’s budget, while the BJP has criticized Chief Minister Arvind Kejriwal for creating controversy over the budget for “cheap publicity” and to deflect attention from his own mistakes.
- AAP MLA Saurabh Bharadwaj accused the MHA of expressing concerns about the Delhi government’s budget and refusing to approve it, according to a letter sent to the chief secretary on March 17. He alleged that the chief secretary sat on the letter for three days, and claimed that the Centre was behind a conspiracy to delay the budget. The Delhi budget requires prior approval from the Centre before it can be tabled in the assembly, and Chief Minister Arvind Kejriwal wrote a letter to Prime Minister Modi stating that it was the first time in 75 years that the budget of a state had been stopped. The BJP accused Finance Minister Kailash Gahlot of leaking budget allocations to the media and demanded his resignation over the “breach of privilege”.
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