From 7th Pay pension for DTC to incentives, and expenses from Sisodia's Rs 53000 crore Aam Aadmi Budget

Last Updated: Thu, Mar 22, 2018 16:19 hrs
Manish Sisodia

From 7th Pay pension for DTC to incentives, and expenses from Sisodia's Rs 53000 crore Aam Aadmi Budget The Aam Aadmi Party led Delhi government presented a Rs 53,000 crore budget for 2018-19 in the assembly. The budget laid emphasis on environment, health, education and water.

Deputy CM Sisodia presents Rs 53,000 crore annual budget for 2018-2019. Budget volume has increased 1.5 times in the last three years. 13% of the total budget is being allocated to three MCDs. "The budget estimates for 2018-19 are pegged at Rs 53000 crore which is 19.45 % more than the revised budget estimates of Rs 44,370 crore for the previous financial year," Sisodia said.

Deputy CM Manish Sisodia said the budget followed the philosophy of "trickle up" economics aimed to benefit poor and middle class people of Delhi. He said, "the budget estimates for 2018-19 are pegged at Rs 53000 crore which is 19.45 % more than the revised budget estimates of Rs 44,370 crore for the previous financial year."

"What is the use of becoming fastest growing economy if we spend lesser than BRICS and SAARC countries on health and education? What is the use of mega summits if kids are malnutritioned," questioned Manish Sisodia.

Sisodia's remark was hit at the centre which had been hosting various investor-summits. He explained, "Traditionally, our country has followed the 'Trickle Down' approach to economic policy. It emphasizes giving massive tax breaks, subsidies and interest-free loans to big corporate groups and foreign investors in the hope that they will invest and grow the overall economy, which will benefit everyone."

"It's a fair argument except that beyond a point, it doesn't work for the aam aadmi. Since the early 90s until today, successive Central and State governments in India, irrespective of which party is in power, have followed this model. This is clear when almost every day you see full-page advertisements of Central and State governments across the country hosting mega-investor summits with great fanfare, or when you see the names of large corporates favourites to Government and influential people at the top of the list of loan defaulters in India."

He further said that from a GDP perspective holding investor summits and events may have clicked, but since 2013-14 there has been a decline in employment.

The budget has been Touted as the first Green budget of the country, Sisodia laid down programmes aimed at curbing the rising pollution. He said, "We are going to thread 26 programmes and schemes of Transport, Power, Environment and PWD for devising a unified system of pollution control, bringing down levels of different pollutants."

Budget snapshot:

Estimates: 53000 crores for 2018-19. Rs 43092 crores coming for revenue expenditure and Rs 9908 crore for capital expenditure.

Revenue surplus: Rs 4465 crore.


  • Tax reveue of 42000 crores
  • Non Tax revenue of Rs 800 crores
  • Capital receipts of 550 crore
  • Savings of Rs 2924 crore
  • Central Govt sponsored schemes- 3307 crore
  • Central assistance- 450 crore
  • Others- 675 crore and other opening balance

Spending & Major Areas to be investeed on: 31000 crore set to meet liabilities, devolution to local bodies, grant to DTC to meet operating expenditure etc. Also includes Rs 22000 crore for implementation of various schemes and capital projects

Education- Total Outlay of Rs 13997 crore. 26% of the total budget Rs 13,997 crore for education. This is an increase from last year. Sisodia is keen to making Delhi the country's education capital.

Transportation & Power- Talks of 1000 electric buses, incentives for solar and 26 pointers to reduce emission levels. The government has also proposed to set aside Rs 1000 crore for repair and maintenance of smaller roads owned by the municipal corporations of the city. Rs 2190 crore allocated to the power department.

Health- Rs 6729 crore allotted for health sector. It is 12.7% of the total budget, an increase of 0.7% from previous fiscal.

Water- To save water from leakages and theft. Rs 2777 rcore set for water/sewer works.

Note-worthy highlights from the Budget

Acquiring Buses: "1000 indoor display panels to be installed in govt buildings to display pollution levels,' says Sisodia. 'In the transport department, 1000 electric buses will be launched as a part of the green budget. This would, however, require the Lieutenant Governor's nod." The timeline to buy 1,000 DTC and cluster buses each have been fixed. Average fleet utilisation of cluster buses increased to 97% against target of 89%.

Education: Around 1.2 lakh cctvs to be installed in schools and Rs 175 crore has been alloted for the purpose. Parents can monitor their activities in real time over the web, says Sisodia.

Rs 15 crore allocated to Delhi Commission for Protection of Child Rights to evaluate and rank government schools

Healthcare: 'Our govt has focused on providing better healthcare facilities for people. 164 mohalla clinics have been established. 24 polyclinics are functioning and this will reduce the burden on government hospitals. Rs 403 crore is being allotted to the development of mohalla clinics and polyclinics,' the Deputy CM said. Sisodia also announced an increase in the number of beds in various hospitals. Around 80 lakh have availed the facilities at Mohalla clinics till date. Rs 20 crore allocated for free diagnostic test at Delhi government hospitals, Sisodia told the House.

Water: No data to show which colony in Delhi gets how much water and we know 47% of water is lost to leakages and theft. So we are installing bulk meters. Daily water audit can be carried out thorough bulk water metres which will show how much water goes where and where it is lost, says Sisodia.

Internal sewer lines installation in 162 colonies to be completed by 2020. To benefit 13 lakh people. Rs 2777 crore has been allocated for water/sewer work. The government will focus on this sector in the coming fiscal. It is up 19 % from last year.

Incentives & Subsidies:

Incentive of up to Rs 1 lakh to industries to switch over to piped natural gas.

Agriculture cum solar farm scheme to incentivize solar panels in farms.

Incentive to industries in approved industrial areas of up to Rs 1 lakh to switchover to Piped Natural Gas from existing polluting fuels.

To promote solar installations in Delhi, government is offering a limited-time Generation Based Incentive (GBI) for existing and future net metered connections in the domestic/residential segment. A GBI of Rs2 per unit (kWh) of gross solar energy generated is being proposed for 3 years on first come first serve basis.

7th Pay Commission for DTC Pensioners and Employees: Sisodia says, "It is the responsibility of Government to provide timely salary and other allowances to DTC employees and pensioners."

Proposed additional budget to clear past arrears of DTC employees due to implementation of 7th Pay Commission as well as for making payment of arrears on account of de-freezing of DA etc. to DTC pensioners.

Around 41,000 employees and pensioners from DTC will benefit from this decision. Proposes an enhanced budget of Rs.2107 crore in Revised Estimates against Rs.1642 crore in Budget Estimates 2017-18 to meet additional requirement of funds for implementation of above decision and to meet the operational expenditure of DTC.

Higher Education: Students not covered under food security scheme and from families with less than 2.50 lakh annual family income can avail benefit under the scheme to the extent of 50% of tuition fee. Benefit equal to 25% of tuition fee is extended to the students in the higher income bracket having annual family income between 2.50 lakh to 6 lakh.

Ration for Poor: Scheme to provide ration directly at the doorsteps of the poor. Titled as 'Doorstep Delivery of Ration' scheme, this will majorly benefit the poor by stopping the theft of their ration. Sisodia says approval of this scheme is currently pending with the Hon'ble Lt. Governor. "As soon as this approval is received from Hon'ble Lt. Governor, a consultant will be appointed within 21 days. In another 30 days, the RFP will be prepared and a month from then, the tenders will be issued. Further, timelines for rollout will be as decided in the RFP," he said.

To offer a subsidy of up to Rs5000 per tandoor to restaurants to replace Coal tandoors with Electricity or Gas-based Tandoors

Subsidy to various firms and establishments of up to Rs30,000 to switch over from Diesel Generator Sets of 10KVA or more capacity to Clean Fuel based Electricity Generator Sets.

Rs 2190 crore allocated to the power department. Power subsidy scheme, which is benefiting 38.61 lakh households, to continue.

Sisodia also announced mobile van clinics which will cover eye and ear problems and Rs 15 crore have been allotted for for mobile van clinics. Rs 100 crore allocated for city health insurance scheme.

The full budget speech is available here.

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