“Delhi’s Budget 2024-25: Strengthening GST Administration”

Delhi Government to Modernize GST Administration in Budget 2024-25

During the presentation of the annual budget for 2024-25, Delhi’s Finance Minister Atishi announced plans to enhance the Goods and Services Tax (GST) administration, aiming to make it more efficient and faceless to bolster revenue collection.

Focus on GST and VAT Revenue

With an outlay of Rs 76,000 crore, the government aims to source Rs 41,000 crore through GST and Value-Added Tax (VAT), which accounts for 70 percent of the total tax revenue estimated for the fiscal year.

Steady Growth in GST and VAT Collections

In the previous fiscal year 2023-24, GST and VAT collections until January 2024 witnessed a year-on-year growth of 13.96 percent, amounting to Rs 31,445 crore, as stated by Atishi.

Modernization Efforts

The next phase of the government’s initiative involves modernizing the IT infrastructure of GST and making the entire tax administration process faceless.

Collaboration with IIT Hyderabad

Collaborating with IIT Hyderabad, the Delhi government is developing data analytics and automation software to streamline processes such as tracking, monitoring, and simplifying the refund process through artificial intelligence and data analytics.

Efforts to Ensure Fiscal Discipline

Despite a 3.7 percent decrease in the budget estimate for 2024-25 compared to the previous fiscal year, the outlay remains 1.47 percent higher than the revised estimates for 2023-24.

Fiscal Surplus Amidst Unique Challenges

Atishi highlighted that Delhi is the only state in the country that has not resorted to taking loans to manage its budget deficit post the cessation of GST compensation.

Unique Fiscal Discipline

Despite providing free-of-cost facilities such as electricity, water, and bus rides for women, the Delhi government has remained fiscally surplus by honestly raising its own resources.

Conclusion

Atishi emphasized the unique fiscal discipline of the Delhi government amidst the challenges posed by the absence of GST compensation in the past two years. The government’s efforts to modernize GST administration and ensure fiscal discipline underscore its commitment to efficient governance and revenue management.