Kejriwal writes to Shah, Sitharaman demanding hike in Delhi's share in central taxes

Delhi Chief Minister Arvind Kejriwal Thursday wrote to Home Minister Amit Shah and Finance Minister Nirmala Sitharaman, demanding that Delhi's shares in central taxes be raised in view of its burgeoning population.

"Delhi has the character of a 'state' and there is a strong case for treating it at par with other states for the purpose of share of central taxes" and grants to its local bodies through recommendations of the Fifteenth Finance Commission, he said.

"The transfer of grants in lieu of share in central taxes has remained stagnant at Rs 325 crore per annum since 2000," Kejriwal's letter read.

He said that due to the "inadvertent omission" of Article 270(3) of the Constitution, which deals with share of taxes between the Centre and the Union territories, Delhi is missing out on "its legitimate share in central taxes of at least Rs 6,500.00 crore per annum".

The chief minister said that the "unfortunate" omission of the constitutional provision in the year 2000 "resulted in an anomaly which has adversely affected the finances of the NCT of Delhi".

He said that as the capital of the country and one of the fastest growing metropolises, Delhi's claims on its resources are immense and varied.

"While the Delhi government has to maintain infrastructure that meets world standards, it also has to improve supply of civic amenities to the burgeoning population who legitimately expect employment and a fulsome life in the capital.

"Consequently, large investments in education, health, social, food securities, transport, roads and hospitals etc. have to be made," he said.

The Delhi chief minister requested Shah and Sitharaman to look into the matter personally and "provide Additional Terms of Reference to the Fifteenth Finance Commission to enable" it to recommend the legitimate shares of Delhi in central taxes.