The Delhi government has pegged at 19.33 per cent the tax collection growth in the 2017-18 fiscal. In 2016-17, as the economy reeled under the impact of the global slowdown and demonetisation, tax collection growth had slumped to 3.03 per cent. As per the Economic Survey report of 2017-18, tabled in the Delhi Assembly on Monday, tax collection in the capital had fallen sharply in 2016-17. However, this year, the city’s revenue surplus has come down to 0.80 per cent (Budget Estimate or BE) of the Gross State Domestic Product (GSDP) as compared to the 1.58 per cent in 2016-17.
In 2017-18, total tax collection has been projected at Rs 38,700 crore as against Rs 31,139 crore in 2016-17. Delhi’s per capita income, at Rs 3,29,093, is the second highest in the country, the report maintains. In 2016-17, the per capita income was Rs 3,00,793. The survey has revealed that all component in the tax revenue had grown this year as compared to last year. However, the first dip after the implementation of the GST was in October . Attributing the dip in tax collection in 2016-17 to the “refunds” made under various heads, Principal Secretary (Finance) SN Sahai said, “The refunds dated back to 10 years in some cases.”
Maintaining that the projected growth rate of 19.33 per cent was one of the best among states with economy as vast as that of Delhi, he said that the revenue surplus has slumped due to the rise in expenditure under many heads, including payment of salaries following the recommendations of the 7th Pay Commission. The survey states, “All components in the tax revenue showed a higher growth rate during 2017-18 (BE) except for other taxes on goods & services, which have show a lesser growth of 9.66 per cent as compared to 12.70 per cent in 2016-17.” It also states that there was fiscal deficit of Rs 1050.51 crore in the year 2016-17 (prov) as compared to fiscal surplus of Rs 1321.92 crore in 2015-16.
“Stamps & Registration Fees registered negative annual growth of 8.39 per cent during 2016-17 (Prov) as compared to the growth of 20.8% during 2015-16 due to the global economic slowdown, which adversely affected the collection under the head,” it reads. The survey showed that the projected GSDP growth in 2017-18 is 11.22 per cent and the state’s economy is likely to attain the size of Rs 6,86,017 crore. The advance estimate of GSDP of Delhi at constant prices during 2017-18 was recorded at Rs 5,56,800 crore at a growth of 8.14 per cent as compared to 2016-17.
What survey highlights
* The advance estimate of GSDP of Delhi at current prices during 2017-18 is likely to attain level of `6,86,017 cr, at a growth of 11.22% over 2016-17
* As per advance estimate, per capital income of Delhi at current prices during 2017-18 estimated at `3,29,093 as compared to `3,00,793 in 2016-17
* Tax collection registered a growth of 3.03% in 2016-17(Prov.) as compared to growth of 13.61% in 2015-16. Tax collection for 2017-18 is budgeted with a growth of 19.33% over the previous year