Subsidies Form Major Chunk of Budgetary Expenditure By Delhi Govt: Report

The report released recently by the Delhi government's Directorate of Economics and Statistics covered the budgets of three financial years 2023-24, 2024-25 and 2025-26.

It seeks to ascertain the capital formation and savings of the government, by reclassifying the actual (A/C) expenditure for the year 2023-24, revised expenditure (RE) of 2024-25 and budgetary expenditure (BE) of 2025-26.

Further, the report mentioned that the revenue receipts of the Delhi government are estimated to increase from ₹56,797.79 crore in 2023-24 (A/c) to ₹81,545.83 crore in 2025-26 (BE).

It is likely to increase by 43.57 %between the year 2023-24 and 2025-26. However, the increase in revenue receipts from 2024-25 (RE) to 2025-26 (BE) is 29.40% the report said.

The total disbursement of the Delhi government was ₹65,823.87 crore in 2023-24 (A/c), whereas the total outlays for 2024-25 (RE) and 2025-26 (BE) were to the tune of ₹69,500.00 crore and ₹1,00,000 crore, respectively.

Out of the total expenditure of ₹65,823.87 crore, about 95% constitutes towards current transfers, including subsidy (35.80% ), said the report.

Other key expenditures include compensation of employees, 23.99% new construction, 9.46%, purchase of goods and services, 8.08%, repayment of loan to the central government, 7.59 %, and advances, 5.53%.

These items constitute the major share of total expenditure during the subsequent years, pointed the report.

The component of gross expenditure on current transfers, including the subsidy, has been₹23,563.22 crore,₹25,896.13 crore and ₹34,519.86 crore in the years 2023-24 (A/c), 2024-25 (RE) and 2025-26 (BE), respectively.

Current transfers or grants include funds to aided schools, scholarships and stipends, welfare of the weaker sections of the society, private institutions, local bodies and autonomous bodies.

The major chunk of the subsidy expenditure is spent on concessional passes issued by the Delhi Transport Corporation (DTC), compensation for meeting deficit of public transport buses and for working deficit of DTC for operation of buses, subsidies for female commuters, subsidies for electric vehicles, subsidies to consumers for sugar, subsidies paid to the consumers through dis-coms and sops to consumers through Delhi Jal Board and New Delhi Municipal Council, added the report.