GST collection in Q1 rose 15%, reflects honest governance: CM Kejriwal

The Delhi government's GST collection rose 15 per cent in the first quarter of the 2023-24 fiscal compared to the year-ago period, with Chief Minister Arvind Kejriwal saying honest governance leads to increased revenue.

According to figures shared by the chief minister on Twitter, the first quarter collections of goods and services tax (GST) in the past five years almost doubled from Rs 4,419.71 crore in 2018-19 to Rs 8,028.91 crore in 2023-24.

Kejriwal said the growth meant his government will have more money to spend on building schools, hospitals and infrastructure.

"Governments often say they don't have money for making good schools and hospitals. But our government in Delhi has shown that honest governance leads to increased revenue.

"Delhi's first quarter GST collection has increased at an impressive 15 per cent from last year. This is how we will have money to build more schools, more hospitals, more infrastructure for the people of Delhi," he tweeted.

Finance minister Atishi said in a press conference that the Kejriwal government has set an example of honesty for the entire country.

"With record growth in GST collection, we have proven that if the intentions are right, governments will never face any shortage of funds. The budget of the Kejriwal government has been increased consistently for the past eight years without imposing any new taxes on the public," she said.

For governments claiming shortage of funds, the Kejriwal dispensation is an example that an honest government not only increases revenue but also provides good schools, Mohalla clinics and quality hospitals to the people of Delhi, Atishi said.

In the first quarter of 2018-19 when GST was introduced, tax collections in Delhi were at Rs 4,419.71 crore. It increased to Rs 4,668.23 crore in 2019-20. Due to the lockdown in the first quarter of 2020-21, businesses were closed and the collection dropped to Rs 2,474.78 crore, she said.

However, as soon as the lockdown was lifted, GST collection increased. It reached Rs 4,014.98 crore in the first quarter of 2021-22. In the previous year (2022-23), the GST collection in the first quarter was Rs 6,985.05 crores, she said.

"I am pleased to inform you that in the current fiscal, the GST collection in the first quarter has increased by 15 per cent and reached Rs 8,028.91 crore," Atishi said.

Since the AAP government came to power in Delhi, its budget has consistently increased. In the year 2014-15, Delhi's total budget was Rs 30,000 crore. Within just five years, without imposing any new taxes, the government doubled this budget to Rs 60,000 crore in 2020, the minister said.

Furthermore, Delhi's budget increased to Rs 75,000 crore this year. It is evident if a government is honest, there will be no shortage of funds, she added.