NEW DELHI: The Delhi government’s economic survey on Monday stated that the Gross State Domestic Product (GSDP) of the national capital contracted by around 5.68% during 2020-21 as a fallout of Covid-induced curbs. However, vaccination has rekindled hope for future growth, it said.The global pandemic brought an “economic shock”, it said, adding the AAP government continued with its flagship and popular social welfare schemes throughout the financial year.
Shedding light on the financial health of the national capital, the survey said the pandemic had wide-ranging effects on every section of the economy and created disruptions to the demand-and-supply chain. However, the education sector remained a priority for the government with the maximum share allocation of 23.83% of the total budget, followed by transport and health.
The GSDP of Delhi at constant prices increased to `6,13,843 crore during 2019-20, indicating a growth of 7.10%. The advance estimate of GSDP of Delhi at constant prices during 2020-21 was recorded at Rs 5,78,971 crore and showed a contraction of 5.68% over 2019-20, said the survey.It explained how during the pandemic, “curtailment of spending options due to closure of all contact-sensitive activities, the triggering of precautionary savings, risk aversion among businesses and resultant fall in consumption and investment” led to a demand shock for the economy.
The Delhi government was among the first states in the country that started its path to recovery last year, it said, adding the vaccination drive has rekindled hopes for a sharp recovery of the real GSDP in the next financial year. “With the economy’s return to normalcy, brought closer by initiation of a mega vaccination drive, hopes of a robust recovery in services sector, consumption, and investment have been rekindled,” said Deputy CM Manish Sisodia while presenting the economic survey.
In various key departments like water, the government has stated that it has ensured a free lifeline of up to 20 km to every house having a metered connection. Water has been one of the main poll planks of the Kejriwal government that returned to power for the third consecutive term. On public transport, the scheme for free bus trips for women brought a huge relief. In the 2019-20, around 19 crore free tips were made under the scheme that included both DTC and cluster busses.
