Delhi Government Overspent Under AAP, Reports CAG; Fiscal Surplus Turns Into Deficit

The Delhi government overspent during the Aam Aadmi Party’s (AAP) tenure, as per the Comptroller and Auditor General (CAG) report titled State Finances for the Year 2023-24, reported The Indian Express.

Chief Minister Rekha Gupta tabled the report on Monday (4 August) during the Monsoon Session of the Assembly.

From having a fiscal surplus of Rs 4,566 crore in 2022-23, Delhi went to a fiscal deficit of Rs 3,934 crore in 2023-24.

“The continuous mismatch between receipts and expenditure indicated a rising fiscal stress,” the report noted.

The report highlighted a steady rise in subsidies — from Rs 3,593 crore in 2019-20 to Rs 4,840 crore in 2023-24. Power subsidies dominated, costing Rs 3,249 crore (70.39 per cent of total subsidies). Under the AAP government, consumers using under 200 units of electricity paid nothing, while those using up to 400 units received a 50 per cent subsidy (up to Rs 800).

Free bus travel for women saw costs jump from Rs 115 crore in 2019-20 to Rs 482 crore in 2023-24. Water subsidies cost Rs 463 crore in 2023-24. Despite earlier criticism by BJP leaders who labeled them ‘revdis’, these subsidies continued after BJP took power.

Capital expenditure fell short of budgeted amounts and declined 15 per cent in 2023-24, especially in Medical and Public Health (−49.87 per cent), Education (−42.19 per cent), Public Works (−39.70 per cent), and Urban Development (−36.36 per cent).

Revenue expenditure consumed 83 per cent of total spending, while the revenue surplus dropped from Rs 14,457 crore in 2022-23 to Rs 6,462 crore in 2023-24.

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