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Budget 2002-03

    Honourable Speaker, Sir,

1.     I rise to present the Budget for 2002-03.

ECONOMIC SCENARIO

2.     Let me first take up economic development in Delhi.  The latest estimate of Gross State Domestic Product (GSDP) at current prices is Rs.57,547 crore for 2000-01 as compared to Rs.52,375 crore in 1999-2000, registering a growth of 9.9% as compared to 8% at the national level. GSDP in real terms in Delhi increased by 4.5% during 2000-01 as compared to 4% at the national level.

3.     The per capita income of Delhi at current prices increased from Rs.33,870 in 1998-99 to Rs.38,864 in 2000-01.  At the national level, the per capita income is Rs.16,487 for 2000-01.  The per capita income of Delhi is more than double the national level.

4.     The tertiary service sector is dominant in Delhi’s economic activity.  The share of the tertiary sector in Delhi’s economy has increased from 78.9% in 1998-99 to 79.6% in 2000-01.  The real growth in transport, storage and communication sub-sector of Delhi’s economy during 2000-01 was 9.1%.  The growth in the community, social and personal services was also 9.1%.  In these two sub-sectors, growth is almost double the growth in Delhi’s economy as a whole.

PRICES

5.     In 1998, when our Government took over charge, the rate of inflation based on consumer price index numbers for industrial workers was 17.6%. Steps taken by the Government yielded positive results and the rate of inflation came down substantially from 17.6% in 1998 to 7.4% in 1999, 7.1% in 2000 and further to 2.9% in 2001.   I would also like to inform this House that the rate of inflation is lowest in Delhi amongst all metropolitan cities except Chennai. The rate of inflation in 2001 was highest in Kolkata at 9.10%, followed by 4.6% in Mumbai, 2.9% in Delhi, 2.5% in Chennai and 3.9% at All India level. Our Government is keeping a close watch on price trends and will ensure that all essential commodities are available to the citizens of Delhi at reasonable prices.

FINANCIAL POSITION

6.      Mr. Speaker, Sir, it is highly encouraging that Delhi continues to have a surplus on revenue account.  This is no small achievement.  In contrast, virtually all other non-special category States have revenue deficit. Delhi’s revenue surplus was Rs.1747.32 crore in 2000-01, while all the non special category-States have posted consistent revenue deficits during 1997-98 to 2000-01. The revised estimate of  2001-02 includes a revenue surplus of Rs.1380.75 crore and the estimate for 2002-03 is Rs.2139.15 crore.  Clearly, Delhi occupies the pride of place in the country in this regard.  This is the result  of prudent financial management.

7.     Delhi’s own tax revenue has increased from Rs.3088.78 crore in 1998-99 to Rs.4400.62 crore in 2000-01 with an average annual  growth of 19.4%.  The tax buoyancy during this period was 1.81.  This is testimony of the improved tax effort and higher revenue collections during the last three years.  Our Government has also taken steps to cut wasteful expenditure.  Non-Plan revenue expenditure was reduced by about Rs.128.62 crore with various austerity measures in 2001-02.

FISCAL DEFICIT

8.     The Fiscal Deficit is a summary statistical measure that indicates the net borrowing requirement of the Government from all sources.  The Delhi Government continues to enjoy the distinctive position of a lower fiscal deficit than that of all the States and the Government of India.  The fiscal deficit of Delhi Government was 2.61% of GSDP in 2000-01 as compared to the all States figures of  4.56% of GDP and the Government of India’s figure of 5.7% of GDP during the year.  This deficit is likely to be Rs.2009.35 crore in the revised estimate for 2001-02 and is estimated at Rs.1823.37 crore for 2002-03.   The unsatisfactory performance of public utilities and public sector undertakings (PSUs) like DTC, DVB and DJB is the main reason for the increase in the fiscal deficit of the Delhi Government. 

PUBLIC DEBT 

9.     Delhi Government’s public debt outstanding as on 31st March, 2001 was Rs.6759.60 crore (11.75% of GSDP).  This is likely to increase to Rs.7785.87 crore as on 31st March, 2002.  One of the main reasons for the increase in the outstanding debt of Delhi Government is to meet the non-plan deficits of various public utilities like DTC, DVB and DJB.  The current year’s additional Non-Plan liability on account of these organisations is Rs.1350.52 crore, of which Rs.804.18 crore is due to DVB, Rs.164.35 crore due to DTC and Rs.381.99 crore due to DJB. The Government has, therefore, had to raise  the current year’s revised target of Small Savings Loan from Rs.841.00 crore (BE) to Rs.1645.39 crore.   The target of Small Savings Loan for 2002-03 is Rs.1637.41 crore.

 RESOURCES OF 9TH PLAN (1997-2002) 

10.    The year 2001-02 is the terminal year of the 9th Plan.  I, therefore, feel it is my responsibility to inform the Honourable Members about the actual resources position in the 9th Plan.  The 9th Plan of Delhi was originally approved at Rs.15541.28 crore at 1996-97 prices.  The provisional estimate of resources during 9th Plan is Rs.11215.53 crore at 1996-97 prices which is 72.17% of the originally conceived Plan outlay.  In comparison to most other non-special category States, Delhi has fared better.

11.    One of the reasons for the shortfall in resources was non-availability of Provident Fund, market borrowing and negotiated loans for want of necessary amendments in the relevant statute by the Government of India till 2000-01.  Government of India has recently amended the Govt. of N.C.T. of Delhi Act, 1991 whereby Delhi Government will be entitled to utilise Provident Fund, Market Borrowing and Negotiated Loans for Plan funding.  The final notification for implementing these amendments is, however, yet to be made by the Government of India.  Other reasons for shortfall in 9th Plan resources were an increase in non-Plan support to the public utilities like DVB, DTC and DJB of about Rs.3470 crore. Also, additional Central Plan Assistance for Externally Aided Projects (EAP) targeted at Rs.1000 crore was not available. 

REVISED ESTIMATES FOR 2001-02

12.    Mr. Speaker, Sir, it is unprecedented in the history of Delhi that the size of the Plan at RE stage is higher than originally budgeted.  I have great pleasure in informing this august House that this is precisely what has happened in 2001-02.  The plan size at RE has been fixed at Rs.4200 crore, higher than the original Plan outlay of Rs.3800 crore.  The total combined outlay of Plan and Non-plan has been put at Rs.9370 crore in RE compared to the BE of Rs.7575 crore.

BUDGET ESTIMATES FOR 2002-03

13.    Mr. Speaker, Sir, the Annual Plan  2002-03, has been fixed at Rs.4700 crore, a step up of 24% over the originally budgeted Plan outlay for 2001-02.   The Annual Plan 2002-03 is the first year of the 10th Plan.  We have finalised the size of the 10th Plan at  about Rs.23000 crore at 2001-02 prices. 

14.    Mr. Speaker, Sir, I would now like to sum up the budgetary position for 2002-03.  Our revenue expenditure is estimated at Rs.4718.54 crore and capital expenditure at Rs.4131.46 crore.  The Budget provision is accordingly proposed  as  Rs.8850 crore  which  includes non-Plan expenditure of Rs.4095.63 crore and Plan expenditure (including Centrally Sponsored Scheme) of Rs.4754.37 crore.

15.    The proposed expenditure  of Rs.8850 crore will be met through  revenue receipts of Rs.6369.72 crore, share in Central taxes of Rs.325 crore, small savings loans of Rs.1637.41 crore, normal Central Plan Assistance of Rs. 362.00  crore and other receipts of Rs.155.87 crore.

16.    This budget is being presented today for the purpose of vote-on-account to enable the Government to carry on its business and meet essential expenditure during the first two months of the next financial year.  This august House is also requested to approve the supplementary grants of Rs.2210.92 crore for the current financial year 2001-02.  The Demands for Grants and the Annual Financial Statement, which are for the full financial year are placed on the table.  However, I will present the sectoral details and tax proposals for the year 2002-03 on 4th April, 2002.

17.    With these words, I commend the Budget to this august House.