The Union ministry of home affairs (MHA) approved the 2023-24 Budget for the Capital after the Delhi government addressed on Tuesday a clarification sought on the basis of “administrative concerns” the lieutenant governor (LG)’s office raised, officials aware of the matter said.
The Budget presentation on Tuesday was postponement after it emerged late on Monday that the requisite nod from the President routed through the MHA had not arrived.
“They [the Delhi government] on Tuesday morning [responded to] the concerns after which approval was given to the Budget,” said an MHA official, who did not want to be named.
The official insisted there was no delay on their part and that the concerns LG’s office marked to the ministry caused it. “On March 17, [the] clarification was sought from [the] Delhi government on the basis of concerns of LG.”
The Budget was now expected to be presented on Wednesday.
The MHA issued a statement on Monday saying LG raised concerns of administrative nature on the Budget, keeping in view the fiscal interest of the National Capital Territory. “…MHA vide its letter dated March 17, requested GNCTD [Government of the National Capital Territory of Delhi ] to resubmit the Budget addressing these concerns for taking further action.”
It said the reply was awaited for four days. “For the benefit of the people of Delhi, the GNCTD should submit [a] reply immediately.”
The Capital has two power centres–Arvind Kejriwal’s government and the Union government represented by LG. They have been involved in bitter confrontations. The tensions between the two escalated with the arrest of former deputy chief minister Manish Sisodia last month in connection with alleged irregularities in the now-scrapped 2021-22 excise policy.
Delhi finance minister Kailash Gahlot earlier on Tuesday announced the Budget postponement and said an elected government has been stopped from presenting the Budget for the first time in the country’s history.
“I am informing the House with a heavy heart [about the postponement]…” he said as he spoke at the beginning of the third day of the Budget session of the Delhi assembly.
Gahlot, who arrived in the House without the Budget document, said its presentation was scheduled in advance. “On March 10, all documents as per law were sent to MHA. At 2pm, on Monday, I came to know about the queries [about the Budget]… I talked to chief secretary [Naresh Kumar] and principal secretary of finance [Ashish Chandra Verma] and directed them to put up the queries.”
He said at 6pm on Monday, the file accordingly came to him and he responded and sent it to the LG. “At 10:30pm, the file was returned. If the elected government is not allowed to present the Budget…no act can be more unconstitutional,” Gahlot said.
Gahlot blamed Kumar and Verma for the delay. He said the file was sent to Verma on Monday night. “In the morning, [Verma] informed me that the file has been sent to the MHA on Tuesday morning,” said Gahlot.
Gahlot said the development has left the elected government and the chief minister irrelevant. “If the Budget is not presented, the salaries of the employees will stop. The entire development should be investigated,” Gahlot said.
Delhi assembly speaker Ram Niwas Goel called the delay in the Budget unconstitutional and illegal. “I have come to know that the Budget cannot be tabled today [Tuesday],” Goel said when the assembly proceedings began.
The Delhi government and the LG have blamed each other over the delay in necessary approvals. Chief minister Arvind Kejriwal claimed at an event that the Union government blocked the Budget.
MHA officials aware of the matter denied Kejriwal’s allegations and said the approval was held up because of some queries the LG raised.
The clarifications were sought on four counts. The first was related to what the LG apparently flagged as inadequate spending on capital expenditure. The second was related to plans for subsidy as compensation to agencies with uneconomic recovery.
Third, the Delhi government had not implemented central schemes like Ayushman Bharat, which has put additional funds out of its reach. Fourth, the Budget estimate for spending by the information and publicity department was pegged at over ₹500 crore, against a spend of ₹272 crore in the current fiscal.