CAG report says Delhi's fiscal surplus turns into deficit in FY24, revenue surplus drops over 55% in FY24
GSDP growth steady, budget size expands
Despite the drop in surplus, Delhi's economy continued to grow. The report showed that the gross state domestic product (GSDP) at current prices increased by 9.2% in 2023-24 compared to the previous year. Over the past five years, Delhi recorded an average GSDP growth rate of 8.8%, rising from ₹7.9 lakh crore in 2019-20 to ₹11.1 lakh crore in 2023-24. During the same period, the budget outlay rose from ₹64,180.7 crore to ₹81,918.2 crore at an average annual rate of 7.1%.
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Capital expenditure remains under 1% of GSDP
The audit found that Delhi's capital expenditure consistently stayed below 1% of GSDP between 2019-20 and 2023-24. In 2023-24, capital spending dropped by 15% over the previous year. The report noted a significant decline in key sectors:
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Medical and public health (down 49.9%)
Education, sports, art and culture (down 42.2%)
Public works (down 39.7%)
Urban development (down 36.4%)
Drop in Central assistance and capital receipts
The state's grant-in-aid from the Centre showed a continuous fall over the five-year period. While revenue receipts increased from ₹47,136 crore in 2019-20 to ₹56,798 crore in 2023-24, capital receipts dropped sharply from ₹5,588 crore to ₹98 crore. The Centre's grant share in Delhi's revenue receipts declined from about 20% to just 3.7% during this time. In 2023-24, Delhi received ₹955.3 crore under centrally sponsored schemes.
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Subsidies rising, power sector dominates
Subsidies provided by the Delhi government have been increasing, with total subsidies rising from ₹3,593 crore in 2019-20 to ₹4,840 crore in 2023-24. Power subsidies remained the largest share, making up 67% of the subsidy bill in 2019-20 and rising to 70.4% by 2023-24.
The audit report highlighted that some government departments failed to use their full budgetary allocation. It also laid out several recommendations, including:
'Preparation of realistic budget estimates, backed with correct assessment for availability of resources and potential to expend'
'Strict compliance of provisions of budget manual'
'Formulating strategies for actual execution of major policy decisions'
'Adhering to quarterly targets fixed for incurring expenditure through periodic monitoring to avoid rush of spending towards end of the year'
This was the first audit report of 2025 tabled in the Assembly. It included a review of the government's fiscal position, the structure of accounts, budgetary procedures, and macro-fiscal indicators. The report is yet to be taken up for discussion and will be forwarded to the Public Accounts Committee by Speaker Vijender Gupta for detailed examination.
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