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Sisodia demands increased share in central tax for Delhi

IANS | December 31, 2021 11:59 AM

NEW DELHI:Citing Covid-induced inflation as the reason, Delhi Deputy Chief Minister Manish Sisodia has urged the Centre to increase the national capital's share in the central tax, as it has been getting only Rs 325 crore for the last 21 years and said it is unfair to the Union Territory.

"Also, for the last 21 years, Delhi has been getting only Rs 325 crore out of central tax, now it is necessary that the Central government must increase it," Sisodia said during the annual meeting of Chief Ministers with the Union Finance Minister Niramala Sitharaman for the Union Budget 2022-2023 held on Thursday.

Central assistance to National Capital Territory of Delhi (NCT) which was Rs 370 crore in 2000-01 has been raised to only Rs 626 crore in 2020-21. However, the expenditure of Delhi has increased more than nine times from 7,200 crore in 2000-01 to 69,000 crore in 2021-22, he added.

"Delhi government has incurred expenditure on various Covid-related urgent and emergent activities which is still continuing in view of the prevailing Covid-19 pandemic. Thus an increase in central assistance is required now, the Delhi Deputy Chief Minister said, adding, "It has been requested to the Ministry of Home Affairs to allocate 1,925 crore in revised estimates (RE) 2021-22 and Rs 2,020 crore in 2022-23.

The AAP leader said, "Delhi's contribution to the country's GDP is 4.4 per cent, despite the fact that Delhiites constitute only 1.49 per cent of the total population of the country."

"Per capita income of Delhi is three times the national average. Per capita income of Delhi is 3,54,004 at current prices which is about three times higher than the national average of 1,28,829 for 2020-21."

Seeking Goods and Services Tax (GST) for the national capital, Sisodia said that in the pre-GST scheme, every state used to take big or small decisions regarding tax, budget or revenue according to their challenges. Now, these decisions are taken collectively.

"Many times the state is facing a lot of difficulties. Due to Covid-19, business came to a standstill. In Delhi, due to pollution also we have to face the lockdown. So in view of all this, if GST compensation is not carried forward, then it will definitely be difficult for all the states to run the governments," he added.

The Deputy Chief Minister underlined the importance for an increase in allocation of funds to the three Municipal Corporations of Delhi (MCDs), saying, "The national capital is the face of the country but today the MCD is facing acute shortage of funds and are not able to maintain the cleanliness and development in the capital. Therefore, funds should be provided to the MCDs like other states."

He also demanded the Centre to establish a Sainik school in the capital city so that children can get quality education.


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