1. Delhi tax collection growth rate nears 21 per cent

Delhi tax collection growth rate nears 21 per cent

The tax collection in Delhi has been pegged at 20.84 per cent in the current year, but there has been a reduction in its revenue surplus, according to the latest Economic Survey of the national capital.

By: | New Delhi | Published: March 8, 2017 12:49 AM
It was 1.57 per cent of the GSDP in 2015-16 at Rs 8,656 crores and Rs 6,075 crores in 2014-15, the report said. (Reuters)

The tax collection in Delhi has been pegged at 20.84 per cent in the current year, but there has been a reduction in its revenue surplus, according to the latest Economic Survey of the national capital. The city collected Rs 30,225.16 crores in taxes during 2015-16 with a growth rate of 13.61 per cent as compared to the growth of 2.64 per cent in 2014-15, it said today. Revenue surplus (actual amount of net income over and above the projected amount) of Delhi has been pegged at 0.89 per cent (estimate) of the Gross State Domestic Product (GSDP) in 2016-17. It was 1.57 per cent of the GSDP in 2015-16 at Rs 8,656 crores and Rs 6,075 crores in 2014-15, the report said. The survey, however, said Delhi had its fiscal surplus (income exceeding spending) in 2015-16 at Rs 1,321.92 crores, which is 0.24 per cent of the GSDP, thus the “overall financial position of Delhi is sound.”

“Excise recorded the highest growth of 23.82 per cent. Tax collections under stamps and registration, VAT and Motor Vehicle Tax recorded a growth of 20.85, 10.70 and 3.09 per cent respectively,” it said. According to the report tabled in the Delhi Assembly, the per capita income of Delhi, which is already three times the national average, is likely to cross Rs 3 lakh during 2016-17.

“The per capita income of the city was nearly three times the national average at Rs 2,73,618 in 2015-16 as compared to Rs 2,49,004 in 2014-15. “The advance estimate of per capita income of Delhi at current prices during 2016-17 is estimated at Rs 3,03,073,” it said. The report highlighted an oft-repeated complaint of the Arvind Kejriwal government that the Centre was depriving it of its due share in Central taxes, which has been “stagnant at Rs 325 crores since 2001-02 as the state has not been covered under the recommendations of the 14th Central Finance Commission (CFC).”

Despite this, the state was releasing funds to the civic bodies according to the recommendations of the third Delhi Financial Commission, it said. The recommendations of the fourth DFC has not yet been implemented. The advance estimate of GSDP of Delhi at current prices during 2016-17 is likely to be Rs 62,2385 crores, which is estimated to grow at 12.76 per cent over 2015-16. The GSDP is defined as a measure of the volume of all goods and services produced within the boundaries of the state during a given period of time.

Also Watch:

The report said the flow of Central assistance in terms of plan grants has decreased substantially from Rs 2,020.19 crore in 2014-15 to Rs 1,353.27 crore in 2015-16 mainly due to reduction on account of release of special grant for Jawaharlal Nehru National Urban Renewal Mission (JNNURM), Central road fund, water projects and power sector.

“Similarly, the non-plan grants from the Centre has increased considerably from Rs 327.95 crore in 2014-15 to Rs 2905.02 crore in 2015-16 mainly due to compensation on account of phasing out of Central Sales Tax and implementation of VAT,” it said. From 2014-15 onwards, funds for Centrally sponsored schemes had formed part of the Central Plan Assistance.

  1. No Comments.

Go to Top