Subsidies form major chunk of budgetary expenditure by Delhi govt: Report

New Delhi, Jan 1 (PTI) Subsidies on electricity and water supply, travel by women passengers in buses, and concessional passes comprise around 35 per cent of the budgetary expenditure of the Delhi government, according to a 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 Rs 56,797.79 crore in 2023-24 (A/c) to Rs 81,545.83 crore in 2025-26 (BE).

It is likely to increase by 43.57 per cent 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 per cent, the report said.

The total disbursement of the Delhi government was Rs 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 Rs 69,500.00 crore and Rs 1,00,000 crore, respectively.

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

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

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 Rs 23,563.22 crore, Rs 25,896.13 crore and Rs 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 discoms and sops to consumers through Delhi Jal Board and New Delhi Municipal Council, added the report. PTI VIT HVA