With the city’s economy reeling under the blow of the pandemic, the Delhi government has started looking for ways to expand its revenue base by reaching out to economic and public finance experts. On Wednesday, Deputy Chief Minister Manish Sisodia announced that the Dialogue and Development Commission of Delhi (DDC) has been tasked with carrying out a study within two months to expand the state government’s revenue base.
Quoting data from the Delhi Economic Survey 2019-20, Sisodia said the capital has among the higher per capita incomes in the country — Rs 3.89 lakh at current prices — but ranks 19th in terms of its tax revenue to GSDP (Gross State Domestic Product) ratio. Tax to GSDP ratio represents the size of the state’s earnings from taxes, relative to the total value of goods and services produced within its boundaries. In July 2019, the city got Rs 3,500 crore in tax collections. In 2018, the collection was Rs 4,078 crore in July. This year, around Rs 1,300 crore has been collected.
“The pandemic has put a huge strain on government revenues… all-out efforts must be made towards revenue augmentation so that the government is able to undertake necessary works and programmes for the welfare of people of Delhi… There is scope for improving tax to GSDP by improving revenue base. DDC may carry out detailed study on all contributing factors by analysing relevant tax-related data of GNCTD, and suggest short- and long-term measures to improve revenue base,” Sisodia said in a statement.
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