Delhi CM Kejriwal chops growth budget, keeps vote bank
NEW DELHI: Brace for some bad news on infrastructure, transport and employment fronts in Delhi. The Arvind Kejriwal government will reduce its gross budget outlay for 2016-17 to nearly `40,000 crore, from the initial plan of over `46,000 crore.
The government will present its third budget in the first week of March. The proposed budget cut is due to a sharp decline in revenues. Sources said projects related to transport, public works, urban development, social security and welfare, water and sanitation will get impacted. The Aam Aadmi Party government, however, will not cut down on subsidies, upsetting its core vote bank.
The Aam Aadmi Party government will cut its budget allocation for infrastructure and transport projects affecting employment generation in the city. However, it will not cut down on subsidies for fear of losing its core vote bank—the lower middle class segment of the population.
“Due to demonetisation, the last quarter witnessed a 30 per cent dip in revenue collection, as a result several projects—especially pertaining to transport and infrastructure—will be majorly hit. The projects include some upcoming flyovers and buildings which were to begin in the mid of this year,” said highly placed sources in the government.
Infrastructure development generates major employment in Delhi. “With the cut in the budget allocation for the sector, there would be delay in starting these projects which will directly impact jobs,” the officer added.
Education and public health will, however, remain untouched. “They are on the top of the government’s priority,” an official said. Last year, the state government had allocated 23 per cent for education, 19 per cent for transport, 15 per cent for medical and public health.
According to the sources, the Delhi government had conducted a survey to check the impact of demonetisation on various industries. “Electronics are down by 20 per cent, taxes from travel items and food is down by 35 per cent, footwear industry that thrives on cash is down by 30 per cent, dry fruits is minus 23 per cent,” the official explained.