AAP to allocate Rs 1,690 crore towards power, water subsidies

Seeks additional expenditure of Rs 91 cr for these for March 2014-15

The Aam Aadmi Party government in Delhi on Tuesday proposed Rs 1,690 crore towards power and water subsidy to domestic consumers for 2015-16 in a vote-on-account presented for the first three months of the next financial year, FY16. It also sought additional expenditure of Rs 91 crore under these two heads for March 2014-15.

As of now, the Delhi government will have a fiscal surplus of Rs 834.18 crore for 2015-16. This amount will change once the full Budget for 2015-16 is presented.

Lower own-tax revenues of Rs 27,670 crore in the Revised Estimates (RE) for 2014-15, compared with Rs 31,571 crore pegged in the Budget Estimates (BE) led to a fiscal deficit of 354.25 crore in the RE against a fiscal surplus of Rs 2,014.54 crore in BE.

However, the government will not have any revenue deficit either for 2014-15 or 2015-16, although the government's revenue surplus would come down to Rs 6,102 crore in RE of 2014-15 against Rs 8,863 crore pegged in BE. For 2015-16, the government will have a revenue surplus of Rs 6,998 crore. Even as Finance Minister Manish Sisodia sought additional money for March, the last month of the current financial year, non-Plan expenditure was lower at Rs 18,440 crore in RE than Rs 19,066 crore in BE. However, it would rise to Rs 21,500 in BE of 2015-16.

Sisodia, who is also the deputy chief minister, said the government would come out with a full Budget in a month after holding consultations with the people to identify priorities for various sectors.

Chief minister Arvind Kejriwal said the Centre was not giving states their due share of central taxes, despite recommendations of various finance commissions.

"Delhi's share in central taxes remains stagnant at Rs 325 crore since 2001-02," he said.

Kejriwal attributed this to the Union territory status of Delhi. "The 14th Finance Commission has recommended increasing the devolution of central taxes to states from 32 per cent to 42 per cent."

He claimed had the recommendation of the 14th Finance Commission been applied to Delhi, it would have received Rs 25,000 crore between 2015-16 and 2019-2020.

The statement assumes importance in the wake of the reported refusal by Kejriwal to give grants and loans to municipal corporations.

Sisodia also put a proposal to amend the Value Added Tax Act, which was passed in the House. The amendment will allow traders to carry forward their credit for the successive financial years.

In the vote-on-account, fresh taxes are not imposed. However, the AAP has already raised water tariff by 10 per cent for those families consuming more than 20,000 litres of water in a month.