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ADEQUATE BUDGET IN THE UNION BUDGET 2020-21

ADEQUATE BUDGET IN THE UNION BUDGET 2020-21

The Deputy Chief Minister & Finance Minister of Delhi, Manish Sisodia has requested the Union Finance Minister to consider the view of the Govt. of Delhi while allocating the Budget for Delhi in the Union Budget 2020-21. In letter written to the Union Finance Minister, Nirmala Sitharaman. Sisodia has brought to her notice about certain disparities and variances in allocating the funds. He said that Government of NCT of Delhi is only getting grants in lieu of share in central taxes and that too has been kept stagnant at Rs.325 crores since 2001-02 while all other States get an enhanced share in central taxes every year.

We have already requested the MHA, Government of India vide letter No. F.22(4)/ 2019-20/ Plg./ Res/ dated 19-09-19 for provision of Rs.7150 crore in the current year revised estimates & Rs.8150 crore in regular budget 2020-21.

Sisodia requested the Union Finance Minister to increase in the normal central assistance while revising estimates for 2020-21 (BE). The Normal Central Assistance given by Government of India to NCT of Delhi was Rs.370 crore in the year 2000-01 and after 18 years it is still Rs.472 crore as allocated in the Union Budget 2019-20 of MHA, GOI. However, our expenditure on various schemes/ programmes has increased by more than 8 times i.e. from Rs.3129 crore in 2000-01 to Rs.27000 crore in 2019-20 (BE). The Normal Central Assistance which was 11.8% of the Plan expenditure in 2000-01 has declined to just 2% in 2019-20 (BE). It is therefore requested to increase the Normal Central Assistance to at least Rs. 1500 crore in the current year revised estimates and Rs. 1800 crore in 2020-21 (BE).

Sisodia also demanded financial support to Local bodies and said that the local bodies of Delhi should be given their proper dues and financial support. The Fourteenth Finance Commission allocated Grant-in-aid of Rs.2,87,436 crore for the Local Bodies for the award period 2015-2020. However, Local Bodies of NCT of Delhi were omitted from this GIA on the principle that only states are covered under the award scheme. Delhi has five municipalities, of which three are major municipal corporations having population between 39 lakh to 62 lakh. The powers and functions of the municipalities in Delhi are similar to that in other States. The omission of the Local Bodies of Delhi by the Union Finance Commission on technical grounds does not help the constitutional mandate of strengthening the Local Bodies. The three municipal corporations of Delhi are under financial crunch and merit the same consideration from the Central Government. Delhi also devolves funds to the Local Bodies, out of its net tax proceeds on the basis of recommendations of the Delhi Finance Commission appointed under Article 234-I read with Article 243-Y of the Constitution of India.

The Government of NCT of Delhi has recently accepted recommendations of 5 th Delhi Finance Commission. Accordingly funds of Rs.4179 crore devolved in the year 2018-19 & funds of Rs.4575 crore kept towards local bodies in the BE 2019-20.

Hence, the local bodies of Delhi should be given adequate grants as in case of Other States. Above proposed allocation of Rs.7150 crore & Rs.8150 crore towards Share in Central Taxes in current year revised estimates and regular Union budget 2020-21 includes Rs.1150 crore & Rs. 1250 crore respectively towards local bodies.

He has also brought to the notice of the Union Finance Minister about the variance in releasing the 100% funds under CSS in all UTs (without legislature and for UTs with legislature).

The Deputy Chief Minister has requested the Union Finance Minister to issue necessary corrigendum in respect of above OM of NITI Aayog that all Centrally Sponsored Schemes (CSS) would be funded 100% by Centre in all UTs (with and without Legislature).

NITI Aayog, in its Office Memorandum dated 11.8.2016 has mentioned that all CSS would be funded 100% by Centre in all UTs (without Legislature) and for UTs (with Legislature), existing funding pattern would be followed.

The proposed funding pattern for UTs with Legislature under CSS is at variance with the recommendation of 100% central funding for Union Territories by the Sub-Group of Chief Ministers and the Office Memorandum issued by the NITI Aayog.

The issue of legitimate demand of GNCTD for its share of about Rs.3202 crore in the unsettled amount of Rs.1.68 lakh crore of IGST which was devolved to the Centre and States as per 14a Finance Commission recommendation without the GNCTD getting any share, was raised by me in the pre-budget meeting for the regular budget 2019-20 held on June 21, 2019 and subsequently in the 37a GST Council Meeting held on September 29, 2019 at Goa. A Group of Ministers (GOM) has now been constituted to examine the issue of IGST settlement.

Therefore, I would like to request you to look into the matter and allocate GNCTD’s the legitimate share of about Rs.3202 crore in the adhoc settlement of unsettled IGST balance (of Rs.1.68 lakh crore as on 31.03.2018) in the current year itself.

The Deputy Chief Minister said that The Government of India has launched a Central Sector scheme “Promotion of Agricultural Mechanisation for In-Situ Management of Crop Residue in the State of Punjab, Haryana, Uttar Pradesh & NCT of Delhi” to tackle air pollution and to subsidize machinery required for in-situ management of crop residue in these States. Under this scheme, Government of India has also released Rs.4.52 crore to NCT of Delhi and funds amounting to Rs.273.80 crore, Rs.192.06 crore and Rs. l 05.29 crore to the States of Punjab, Haryana & Uttar Pradesh in CFY 2019-20 till 31. 11.2019. However, more stubble burning cases were recorded this time as compared to last year despite a strict enforcement.

To tackle the issue of Air Pollution in Delhi, Central Government needs to augment the financial assistance to our neighboring States.

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