CAG report flags fall in Delhi’s contribution to national GDP
A CAG report shows Delhi's GSDP growth was slower than the national economy. Revenue receipts grew, driven by tax collections, while non-tax revenue declined. Government expenditure saw higher revenue spending, limiting capital investment opportunities. Subsidies, especially for power, increased significantly over the decade. Capital expenditure declined, impacting infrastructure and transport…
Delhi's economic contribution to India's GDP has decreased from 4% in 2015-16 to 3.67% in 2024-25, according to a Comptroller and Auditor General (CAG) report presented in the Delhi Assembly on Monday. This decline in share indicates that the city's growth has not kept pace with the country's overall economic expansion. The national capital's Gross State Domestic Product (GSDP) stood at Rs 12.15 lakh crore in 2024-25, registering a 9.17% increase over the previous year.
However, Delhi's per capita GSDP was 177.07% higher than the national figure in 2015-16 and narrowed to 135.34% above the national figure by the end of 2024-25. The report noted that Delhi's per capita GSDP growth was 6.39% during 2015-25, below the 8.14% growth in India's per capita GDP during the same period. The report also highlighted that Delhi's revenue receipts increased by 9.57%, primarily driven by higher tax collections, especially GST.
Nevertheless, non-tax revenue declined by 11.04%, and grants received from the Centre also fell. Capital expenditure, responsible for 88.38% of the growth in Delhi's total expenditure, faced constraints, leaving limited room for infrastructure investment.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
