Updated: June 18, 2021 7:45:09 am
With the cost of managing the pandemic increasing over April and May, the Delhi government has decided to curtail expenditure beyond that for essential and day-to-day functioning and welfare schemes.
Deputy Chief Minister Manish Sisodia said the Delhi government’s expenditure had increased by around 80% in April and May as compared to the corresponding period of the previous financial year.
He said the decision had been made to rationalise the government’s expenditure and keep it within the resources, as tax collections have dipped.
“Revenue receipts of Delhi have been Rs 5,273.26 crore during the first two months of the current financial year, while its expenditure has reached Rs 8,511.09 crore. Delhi has incurred Rs 3,237.83 crore more than its receipts, which were met from last year’s savings. In April and May, the expenditure was Rs 4,705.14 crore in 2019-20 and Rs 4,965.58 crore in 2020-21. Due to the unprecedented Covid surge, expenditure during the first two months has jumped to Rs 8,511.09 crore in the current financial year,” Sisodia, who is also the Delhi finance minister, said.
Tax collection had been hit periodically since the pandemic broke out in 2020, with improvement seen early this year, officials said. The lockdown, which ended three weeks ago, however, had strained resources again.
“Tax collection has declined due to the second wave of the Covid pandemic and lockdown, while expenditure has increased in comparison with the previous years for implementation of various relief and other measures to check the spread of the disease,” Sisodia said.
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