New Delhi, Aug 10 (PTI) The Comptroller and Auditor General (CAG) has flagged that a very low share of the financial assistance given by the Delhi government to local bodies and other institutions over the last decade was earmarked for creating capital assets, with the bulk of the funds going towards meeting day-to-day expenses.
In its report on State Finances of the Government of National Capital Territory of Delhi (GNCTD) for 2024-25, tabled by Delhi Chief Minister Rekha Gupta on Monday, the CAG said the grants-in-aid (GIA) for creation of capital assets ranged between just 6 and 27 per cent of the total financial assistance extended to local bodies and other institutions during 2015-16 to 2024-25.
This meant that between 73 and 94 per cent
of the assistance during the period was consumed by routine, day-to-day expenditure rather than being used to build infrastructure or long-term assets, the report said.
According to the report, GNCTD’s total financial assistance to local bodies which includes MCD, DUSIB, DTC, DJB and other institutions stood at Rs 16,449 crore in 2024-25, a decline of Rs 598.63 crore, or 3.5 per cent, over the previous year’s Rs 17,047 crore.
The dip was mainly on account of a fall in capital grants to municipal corporations and municipalities, which dropped by Rs 150 crore, or 23.11 per cent, from Rs 649 crore in 2023-24 to Rs 499 crore in 2024-25, the report said.
Municipal corporations and municipalities remained the largest recipients of assistance among local bodies, receiving Rs 9,282 crore in 2024-25, up from Rs 8,596 crore a year earlier, the CAG data showed.
Among other institutions, the Delhi Transport Corporation (DTC) received Rs 2,620 crore, the Delhi Jal Board Rs 633 crore, and the Delhi Urban Shelter Improvement Board (DUSIB) Rs 162 crore during the year.
The overall GIA for creation of capital assets across all local bodies and institutions fell to Rs 1,110 crore in 2024-25 from Rs 2,192 crore in 2023-24, translating to just 6.75 per cent of the total assistance for the year — among the lowest such shares in the 10-year period reviewed, the report noted.
The CAG report said the overall quantum of financial assistance to local bodies and other institutions, as a percentage of GNCTD’s revenue expenditure, hovered between 27 and 34 per cent through the decade, standing at 32.91 per cent in 2024-25. PTI VBH MPL MPL
