Delhi's plan outlay slashed by over Rs 1,200 cr

In a steep drop in central assistance to Delhi, a plan outlay of Rs 1,228 crore was today allocated to the city Government in the Union Budget as against last year's Rs 2,435 crore.

The Delhi government was also given a meagre allocation of Rs 50 crore for projects related to the Commonwealth Games.

However, allocation under Jawaharlal Nehru National Urban Renewal Mission has been enhanced to the city as a total fund of Rs 903.63 crore was granted for the year 2010-11, against an amount of just Rs 130.47 crore last year.

Delhi's share in central taxes remains the same for the current fiscal at Rs 325 crore.

Delhi Finance Minister A K Walia said projects worth Rs 9,821 crore have been sanctioned under JNNURM and the capital city will start getting 35 per cent of this amount on start of work related to different approved schemes.

Reeling under financial difficulties due to increased spending on projects related to the Commonwealth Games, Delhi Government had sought a special assistance of Rs 2,000 crore from the Centre for the sporting event in the Union Budget.

Finance Minister Pranab Mukherjee increased the normal assistance to Delhi from Rs 208.85 crore in 2009-10, to Rs 229.72 crore in 2010-11.

In the budget, Mukherjee also proposed an allocation of Rs 53.50 crore for various urban development projects in the National Capital Region.

A separate allocation of Rs 176.90 crore was made to NCR for projects related to the Commonwealth games.

The economic slowdown had a severe impact on finances of the city government with a fall of over Rs 1,300 crore in tax collection being reported in last fiscal.

However, revenue collection improved marginally this fiscal after government hiked bus fare, water tariff and withdrew power subsidy to certain categories of consumers, besides hiking Value Added Tax on over 100 items.