20% of Budget is towards capex, says Delhi Finance Minister Atishi

She tells that the Centre by treating the Union Territory unfairly in devolution of central taxes was killing the goose that lays golden eggs

Delhi Finance Minister Atishi presented a Rs 76,000 crore revenue-surplus Budget on Monday, which was the Aam Aadmi Party (AAP) government’s 10th consecutive budget for Delhi and her first. She tells Archis Mohan in New Delhi that the Centre by treating the Union Territory unfairly in devolution of central taxes was killing the goose that lays golden eggs. Edited excerpts:

What will be the budgetary allocation for the Rs 1,000 monthly honorarium for women in a full financial year?
 

The (Election Commission’s) model code of conduct (for the Lok Sabha polls) will likely be enforced soon. So, we expect to deposit the first instalment of the ‘Mukhyamantri Mahila Samman Yojana’ by September-October in the accounts of women. The allocation for 2024-25 is Rs 2,000 crore (for an estimated 5 million beneficiaries), and it will be Rs 6,000 crore in a full financial year.

Despite the challenges, including not receiving funds from the Centre in the devolution of taxes, we have presented a revenue-surplus Budget and have run a fiscally responsible government. We have brought this scheme after investing in Delhi’s power, health care, and school infrastructure. We are now in a position to spend on this in a fiscally prudent manner.

The scheme will put money in the bank accounts of women, who now have to turn to the males in their family for even the most basic expenses. Money in their bank accounts will change their standing in their households. Secondly, research has shown that women are more prudent in their spending, which is mostly for the betterment of their families, such as buying nutritious food for children, purchasing textbooks for them or even buying appliances. This money will contribute to increasing the demand and expanding the economy.

How has the free bus transport scheme for women helped?
 

The participation of women in Delhi’s workforce is low compared to several other parts of the country. But free bus transport allowed women to travel greater distances to work. According to our data, the number of ‘pink tickets’ increased from 177 million in 2020-21 to 402 million in 2022-23. As many as 1.1 million women travel for free on our buses every day. Since 2019, women have travelled for free 1.53 billion times on our buses.

In your Budget speech, you said that of the Rs 76,000 crore, not a single penny has come from the Centre as a share in central taxes.
 

The Finance Commission provides for two kinds of devolution of taxes — from the Centre to states and states to local bodies. The irony of Delhi is that while we no longer receive any share in central taxes, we have to give money to the local bodies to the tune of Rs 8,000 crore. Delhi contributes Rs 2 trillion in taxes to the Centre. I understand that Delhi is not entitled to the 41 per cent devolution that goes to states. But by not giving any money to Delhi, you (the Centre) are killing the goose that lays golden eggs. In the past nine years, we have invested in infrastructure, constructed roads and 30 flyovers. This year, we have allocated 20 per cent of the Budget to capital expenditure. However, the same development could have been done faster if the Centre had treated us fairly. We used to get Rs 325 crore, but the Centre has closed that head. We are due Rs 951 crore as part of central assistance to Union Territories for 2023-24.

How much did the Delhi government’s liquor policy controversy affect excise collection?
 

It indeed did. In Punjab, excise collection has increased by more than one and a half times. So, the policy was fundamentally sound. But our goods and services tax collections have seen a good increase. It will improve and become faceless with the government collaborating with IIT Hyderabad to develop data analytics and automation software.