Subsidies on Essential Services Make Up 35% of Delhi Government's Budget Expenditure, Report Reveals

According to a recent report by the Directorate of Economics and Statistics, subsidies on electricity, water, and women's bus travel account for about 35% of Delhi's budgetary spending. This analysis covers the budgets for the financial years 2023-24, 2024-25, and 2025-26. It aims to evaluate the government's capital formation and savings by reclassifying expenditures for these years.

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The report highlights that Delhi's revenue receipts are projected to rise from Rs 56,797.79 crore in 2023-24 to Rs 81,545.83 crore in 2025-26. This represents a growth of 43.57% over the period. However, the increase from 2024-25 to 2025-26 is expected to be 29.40%, indicating a significant boost in revenue collection.

Budgetary Allocations and Expenditure

Delhi's total disbursement was Rs 65,823.87 crore in 2023-24, with planned outlays of Rs 69,500 crore for 2024-25 and Rs 1,00,000 crore for 2025-26. Of the Rs 65,823.87 crore spent in 2023-24, around 95% was allocated to current transfers, including a subsidy portion of 35.80%. These figures illustrate the government's focus on subsidies and transfers.

Key expenditure areas include employee compensation at 23.99%, new construction at 9.46%, goods and services purchases at 8.08%, loan repayments to the central government at 7.59%, and advances at 5.53%. These categories form a significant part of the total expenditure in subsequent years as well.

Subsidy Distribution

The gross expenditure on current transfers, including subsidies, amounted to Rs 23,563.22 crore in 2023-24, rising to Rs 25,896.13 crore in 2024-25 and Rs 34,519.86 crore in 2025-26. Current transfers cover funds for aided schools, scholarships, welfare programs for weaker sections, private institutions, local bodies, and autonomous entities.

A large portion of subsidy spending goes towards concessional passes by the Delhi Transport Corporation (DTC), covering public transport deficits and operational costs for buses. Other subsidies include those for female commuters, electric vehicles, sugar consumers through discoms, and benefits via Delhi Jal Board and New Delhi Municipal Council.

This comprehensive allocation reflects the government's commitment to supporting various sectors through substantial financial assistance over these fiscal years.

With inputs from PTI