Delhi government's debt grew by 7% over the course of four years

6 Jul 2022 , 09:33 AM

Despite maintaining a revenue surplus throughout the four years leading up to 2019—20, the Delhi government’s debt climbed by around 7%, according to a CAG audit report presented to the Assembly.

According to the report, the debt climbed by Rs 2,268.93 crore (6.98%) from Rs 32,497.91 crore at the start of 2015—16 to Rs 34,766.84 crore at the end of 2019—20.

Manish Sisodia, the deputy chief minister, delivered the Comptroller and Auditor General (CAG) report of the year 2021 on public finances for the year ending March 2020 in front of the Assembly.

The audit report on state finances offers a critical analysis of the Government of the NCT of Delhi’s annual accounts and the operation of Public Sector Undertakings for the fiscal year ending 31 March 2020.

According to the report, the Delhi government’s revenue surplus for 2019—20 was Rs 7,499 crore, showing that the government’s income receipts were enough to cover its revenue expenditure.

Because the federal government is covering the employees’ pension responsibilities, the Delhi government has been able to maintain a revenue surplus, it was noted.

The Ministry of Home Affairs, Government of India, also pays for Delhi Police expenses, it was said. The amount of revenue received increased by Rs 4,023 crore (9.33%) over the previous year.

About 79.90% of the government’s income collections in the 2019—20 fiscal year came from internal resources, while the remaining 20.10% came from grants of aid. The amount of revenue received increased by Rs 4,023 crore (9.33%) over the previous year.

In 2019—20, 77.58% of NCTD’s total revenue collections were derived from its own taxes, down from 86.36% in 2015—16. From Rs. 1,867.61 crores in 2015—16 to Rs. 3,592.94 crores in 2019—20, the government’s spending on subsidies grew (92.38 percent). According to the data, spending on subsidies climbed by 41.85% in 2019—20 over the previous year.

Financial support for local organizations and others grew from Rs 15,087.22 crore in 2018—19 to Rs 16,232.97 crore in 2019—20 or 7.59%. Due to investments made in Delhi Metro Rail Corporation Ltd., there was an increase in investment in 2019—20 over the prior year of Rs 150 crore.

The CAG report stated that while the government paid interest at an average rate of 8.14 percent on its borrowings during 2019—20, the return on investment was just 0.08 percent. Due to investments made in Delhi Metro Rail Corporation Ltd., there was an increase in investment in 2019—20 over the prior year of Rs 150 crore.

The government of Delhi lacks the authority to obtain loans on the open market. According to the report, the Government of India’s loans and advances make up its debt receipts.