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This is an archive article published on February 2, 2018

Union Budget 2018: Arvind Kejriwal slams ‘step-motherly’ treatment to Delhi, says expected more from Centre

After the Budget, Chief Minister Arvind Kejriwal said, “I had expected some financial assistance to important infrastructure projects. I’m disappointed that the Centre continues its step-motherly treatment to Delhi.”

Delhi Chief Minister Arvind Kejriwal on Union Budget 2018 by Arun Jaitley Union Budget 2018: Delhi Chief Minister Arvind Kejriwal expressed disappointment at the Centre’s “step-motherly treatment to Delhi.”  (Express Photo/Prem Nath Pandey)

The Delhi government reacted sharply to the Union Budget on Thursday, calling it “disappointing” and accusing the Centre of treating Delhi residents like “second-class citizens”. In particular, the Delhi government criticised the Centre for “not increasing Delhi’s share in central taxes, which has been stagnant since 2001-02”.

After the Budget, Chief Minister Arvind Kejriwal said, “I had expected some financial assistance to important infrastructure projects. I’m disappointed that the Centre continues its step-motherly treatment to Delhi.” He also tweeted, “There is nothing for the middle class and traders in this budget. Completely ignored.” His deputy Manish Sisodia raked up the issue of Delhi’s share in central taxes remaining dormant at Rs 325 crore since the 2001-02 Budget.

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“Not a single rupee has been increased in Delhi’s share in central taxes since 2001-02; even this year it stays at Rs 325 crore. No other part of India gets such treatment. The BJP government at the Centre continues to treat Delhi residents as second-grade citizens.” Increasing Delhi’s share in central taxes has been a demand of the Kejriwal government since it first came to power in 2013. The issue was also raised repeatedly by the previous Sheila Dikshit government. A statement from the CM’s office said, “The Delhi government deserves its legitimate share in central taxes to finance various developmental projects.

Delhi Chief Minister Arvind Kejriwal on Union Budget 2018 by Arun Jaitley Finance Minister Arun jaitley arrives in Parliament to present the Union Budget 2018 (Express Photo/Renuka Puri)

We had requested the Centre a number of times to enhance the allocation to at least Rs 5,000 crore as share in central taxes, as against Rs 325 crore being released to Delhi.” In 2001-02, the Delhi government’s Budget was Rs 8,739 crore. In the last financial year, this had increased to Rs 48,000 crore.

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“This is an indication of how much Delhi contributes to the country’s economy. A five-fold increase in the Budget has not been mirrored by the Centre’s contribution,” said an official. The government also raised the issue of providing basic and performance grants to local bodies in states, as per recommendations made by the 14th Central Finance Commission for its award period of 2015-20.

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“Local bodies in Delhi don’t get any support from the government of India. We are providing 10.5% of our annual tax collection to local bodies. But in the 2018-19 Budget, the Centre has not earmarked any funds to the local bodies. We had requested an allocation of Rs 1,000 crore for the local bodies grant.”

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