Delhi should get Rs 10,000 cr from Rs 2 trillion paid as income tax: Atishi

Ahead of Budget 2024, Delhi Minister Atishi demanded the release of additional funds for Delhi for improving infrastructure across roadways, transportation, and power sectors

Delhi's Finance Minister and Aam Aadmi Party (AAP) leader, Atishi, has called on the Centre to allocate Rs 10,000 crore for infrastructure enhancement in the capital. She highlighted that Delhi's government contributed Rs 2 trillion in income tax revenue over the past year.

During a press briefing held in Delhi, she said that the city had contributed Rs 25,000 crore in central GST. She urged the release of additional funds for Delhi, recommending their use in improving infrastructure across roadways, transportation, and power sectors, as well as for urban beautification projects.

The AAP leader further said that the residents of Delhi are the highest income taxpayers. “Delhi should get Rs 10,000 crore from the Rs 2.07 trillion that people of the city pay as income tax. This amount of Rs 10,000 crore is just 0.25 per cent of the Central government’s budget and only 5 per cent of the income tax of Delhiites,” she said.

The Monsoon Session of Parliament will commence on July 22, with Finance Minister Nirmala Sitharaman slated to present the 2024 Budget on July 23.

Criticising the unequal financial treatment of Delhi compared to other major cities, Atishi highlighted that Mumbai generates Rs 5 trillion in taxes but receives only Rs 54,000 crore in return for Maharashtra. Similarly, Bengaluru contributes Rs 2 trillion but gets Rs 33,000 crore from the central pool.

However, Delhi has been allocated just Rs 325 crore annually since 2001, with this funding being discontinued last year, leaving the city without central support. Despite Delhi residents contributing Rs 35,000 crore in taxes last year, the central government did not allocate any funds for crucial services such as free electricity, healthcare, or infrastructure, the AAP leader said.

Atishi labelled this situation as unjust, arguing that major global cities such as New York, Tokyo, and London do not experience such disregard from their central governments.

Responding to her statements, Delhi Bharatiya Janata Party (BJP) secretary Harish Khurana said that the central government had progressively increased its financial support to Delhi, from Rs 4,258 crore in 2015 to Rs 11,945 crore in 2022.

(With agency inputs)