A recent government analysis has revealed that the subsidies provided by the Delhi government on essential services constitute a massive chunk of its annual spending. According to a report from the Directorate of Economics and Statistics, approximately 35% of the state's budgetary expenditure is directed towards subsidies for electricity, water, and concessional travel, primarily for women in buses.
Subsidies Dominate Government Spending
The report, titled 'Analysis of budgetary transactions of state government', examined the finances across three fiscal years: 2023-24, 2024-25, and 2025-26. It aimed to understand capital formation and savings by reclassifying expenditures. The data shows that of the total expenditure of Rs 65,823.87 crore in 2023-24, a staggering 95% comprised current transfers, with subsidies alone accounting for 35.8%.
This trend is set to continue. The component of gross expenditure on current transfers, which includes subsidies, was Rs 23,563.22 crore in 2023-24 (Actual). It is estimated to rise to Rs 25,896.13 crore in 2024-25 (Revised Estimate) and further to Rs 34,519.86 crore in 2025-26 (Budget Estimate).
Where Does the Subsidy Money Go?
The report detailed the major beneficiaries of this substantial subsidy expenditure. The key areas include:
- Concessional passes issued by the Delhi Transport Corporation (DTC).
- Compensation for meeting the deficit of public transport buses and DTC's operational deficit.
- Subsidies for female commuters using buses.
- Incentives for electric vehicle purchases.
- Subsidies to consumers for sugar.
- Subsidies passed to consumers through power distribution companies (discoms).
- Benefits provided to consumers through the Delhi Jal Board and the New Delhi Municipal Council.
Revenue Growth and Other Major Expenditures
On the income side, the report projects a significant boost. The revenue receipts of the Delhi government are estimated to jump from Rs 56,797.79 crore in 2023-24 to Rs 81,545.83 crore in 2025-26. This marks a substantial increase of 43.57% over the two-year period.
While subsidies are the largest single component, other significant expenditures shape the budget. For the 2023-24 period, these included compensation for employees (23.99%), new construction (9.46%), purchase of goods and services (8.08%), repayment of loans to the central government (7.59%), and advances (5.53%). The report noted that these items continue to form the major share of total expenditure in the subsequent years as well.
Broader Fiscal Picture
The total government disbursement was Rs 65,823.87 crore in 2023-24. The planned outlays are Rs 69,500 crore for 2024-25 and a notable leap to Rs 1,00,000 crore for 2025-26. Current transfers, a category that includes subsidies, also encompass grants to aided schools, scholarships, welfare schemes for weaker sections, and funds for private institutions, local bodies, and autonomous bodies.
This fiscal analysis provides a clear snapshot of the Delhi government's spending priorities, highlighting the significant weight of public welfare subsidies in its budget against a backdrop of growing revenue.
