Red-flagging the Delhi government’s Mukhya Mantri Mahila Samman Rashi Yojna (MMMSY), the Finance Department has pointed out that high recurring spending in such schemes will be “improper and risky”, particularly when the state has to resort to high-cost borrowings, The Indian Express has learnt.
The government’s announcement that women will get a payout of Rs 1,000 a month — which AAP chief and former chief minister Arvind Kejriwal called his government’s seventh ‘revdi’ — was first announced in the 2024-25 budget in March. At the time, Finance Minister Atishi had said the first installment under the scheme was likely to be disbursed by September-October.
Kejriwal’s arrest in the excise policy case, however, delayed its implementation.
In a note regarding the impact of the proposed scheme, from Finance Secretary A C Verma to Atishi, who is CM now, its financial liability in 2025-26 was projected to be Rs 4,560 crore.
“… unlike states which may borrow from the market within their Fiscal Responsibility and Budget Management Act norms, Delhi government has no powers to raise loans except National Small Savings Fund (NSSF) and its fiscal expansion must be driven solely by the growth of its own tax and non-tax revenues… The quantum of loan availability from NSSF is capped and its issuance in any particular year depends on the Centre. Use of expensive Capital receipts such as NSSF for incurring long-standing revenue expenditure commitments would be improper and risky and will incur huge interest liability… The Delhi government is required to maintain strict fiscal discipline and align its revenue expenditure with its revenue receipts,” the note states.
Sources said before examining the proposal from the Women and Child Development Department, the Finance Department conducted a preliminary analysis of the government’s current financial state and the impact of implementing the scheme on the 2025-26 budget. This report was submitted to Atishi on December 4. Pushing for implementation, however, Atishi told the Finance Department Thursday to not take any decision “too early”, directing the Finance and Planning departments to consider the proposal and immediately put up comments for her approval.
“In any given financial year, the government may choose to continue or discontinue existing schemes, may modify existing or start new schemes. Therefore, it would not be appropriate to take a decision on BE 2025-26 at this juncture… That would be the government’s prerogative at that point… As far as FY 2024-25 is concerned, a provision of Rs 2,000 crore has been made in this year’s budget and revised estimates for MMMSY… Revenue projections are on track; therefore, existing provisions are likely to be met,” she said, it is learnt.
She also said as far as the scheme’s implementation is concerned, the department has three months, however, schemes may be implemented much faster or much slower than anticipated at the time of their conception. “There are still four months remaining in the current (financial) year, so even at the projected speed, the scheme can be implemented in the current year. Therefore, it is too early a juncture for the Finance Department to decide if MMMSY shall be implemented this year or not,” she said.
Meanwhile, the Finance Department also highlighted that two schemes with “huge financial liabilities” have been taken up by departments this year. The scheme to meet Delhi Jal Board’s revenue deficit, the note says, has been approved and will cost Rs 2,500 crore.
“Additional liability of approximately Rs 4,500 crore on MMMSY will create new revenue expenditure liability of approximately Rs 7,000 crore in the financial year 2025-26 — an incremental liability on revenue account of approximately 12%,” it said.
In another note on the projection of receipts and expenditure for the next financial year, written on December 3, Verma said the government will run into a budgetary deficit of over Rs 8,159 crore, including a deficit on both revenue and capital accounts, on the inclusion of the proposed scheme.
Officials also submitted to Atishi that Delhi’s subsidy bill was already Rs 10,995 crore, “a very significant component” of its budget. “Reducing the impact of subsidy on Delhi’s budget will require sharper targeting and reconsideration of user charges,” Verma wrote.
Citing fiscal stress, the Finance Department recommended that the scheme not be implemented this year. “… Implementation of the scheme is likely to begin after 3 months, i.e, next year… Accordingly, it will be prudent to await the actual flow of resources and consider the proposal at the stage of RE 2024-25,” Verma wrote.
The department added it would examine the scheme’s impact on the budget next financial year and submit its opinion on whether it should be taken up.
Sources in the Delhi government said, “There is already a provision of Rs 2,000 crore for the scheme in this year’s budget. Since only four months are left in the current financial year, only Rs 1,500 crore is likely to be utilised. Also, revenue collection is slightly higher than projected in the current financial year. This is why the Revised Estimate passed in the Assembly Wednesday is Rs 1,700 crore higher than the Budget Estimate passed in March 2024. There is no question of a revenue deficit.”
The scheme was first announced by Finance Minister Atishi during the 2024-25 Budget presentation in March. File 
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