During the Budget session of the Assembly, Delhi Deputy Chief Minister Manish Sisodia unveiled a budget of Rs 75,800 crore for the financial year 2022-23. The budget is a 9.86 per cent increase over the budget allocation for the previous year.
The budget is a significant milestone for the Delhi government. In addition to the budgetary allocation, Sisodia unveiled an electronic city in Delhi that would attract IT firms to the city. He also proposed shopping festivals that would last for four-six weeks.
The budget is also expected to generate 20 lakh new jobs in Delhi within five years. In the current financial year, the MSME sector saw credit growth increase by Rs 52,800 crore.
The government has also announced one year expansion of tax incentives for startups. In the previous year, startups were allowed to get tax exclusion for three years. But Sisodia has expanded this period to four years, a move that is expected to encourage startups.
The government has also rolled out an extension of the transitional relief scheme. This scheme was introduced in the autumn budget of 2021. It will continue to operate from 1 April 2022 to 31 March 2023. In the year 2022/23, the increase in bills for small businesses will be restricted to 15%.
The financial 2022-23 also includes the presentation of financial statements. The most important thing to note is that the 2022/23 budget covers operational and capital expenditures for the next five to ten years. In addition to the budget, a revaluation of all properties is also planned. The revaluation is to take place on the 30th June 2022.
In the fiscal year 2022/23, the Council has also introduced a new levy in rates and charges. The new levy is called the Environmental Levy. It will contribute to the rehabilitation of the Council’s waste management facilities.
The government has also extended the Transitional Relief scheme for the financial year 2022-23. The new scheme will limit increases in bills for small businesses to 15%. This scheme is designed to encourage businesses to compete with businesses outside the shire boundary. It is also the first time that the government has implemented a local preference margin on purchases exceeding $50,000.
The budget is also expected to be presented in the National Assembly during the first week of June 2022. This is the last budget presented by the incumbent federal government. In the next year, the budget will be revised and amended to suit the changing spending profile of the Government.
The budget also entails an extended SSBR. This is a statutory relief prescribed by the government. This scheme will be in place for the financial year 2022-23. However, it is a relatively small number of ratepayers that will be impacted by this. This may be because the Council has a small population base. Nevertheless, the council will try to recover the full cost of its services. In addition, the government has also delayed the national revaluation of non-domestic rates until April 2022.