Delhi collects more revenue in May than April

The increase is mainly due to liquor sales

The Delhi government has collected ₹600 crore in revenue from May 1 to 22, which is considerably higher than ₹400 crore collected during the whole of April. The increase is mainly due to revenue from liquor sales and opening up of a part of the economy, according to officials.

“Tax from vehicle and property registration is very less even in May,” an official said.

In April, all liquor shops in the city were shut, and in May the government initially opened 160 vends. More vends are set to open. In May, the government had also levied a 70% special fee on the MRPs of all brands of alcohol. According to Excise Department records, over ₹110 crore was generated from the ‘special corona fee’ on such products between May 12 and 21.

The government also increased the Value Added Tax on petrol and diesel to 30% from 27% and 16.75% respectively. This has also helped to increase the revenue. But the revenue collection is still less, compared with the same time in 2019. For instance, the revenue collection in April was a little above 10% of the revenue collection in April 2019.

Revenue losses are mounting for the Delhi government and the Delhi Metro Rail Corporation (DMRC) owing to the lockdown, official data reveal.


With Delhi Metro operations suspended, the DMRC is facing a loss of approximately ₹10 crore a day. Continuing restrictions are also shaving a substantial chunk off the revenue being generated by the Delhi government, but things are looking up this month, compared with last month.

According to officials, Delhi Metro’s revenue as of March 31 last year was approximately ₹3,715 crore, including passenger and non-passenger revenue. A Delhi Metro official said, “Delhi Metro’s revenue as on year closing on March 31 last year was ₹3,121 crore from passenger revenue and ₹594 crore from non-passenger revenue, which comes to ₹10 crore per day.”

Operations on the nearly 400-km network across Delhi-NCR has remained suspended since March 22.

“The lockdown is still on, and there has been no revenue during this period. However, the fixed expenditure on staff salary, bare minimum maintenance and so on are being incurred. Details are not available as on date,” the official said. Officials said guidelines would be put in place, even as the DMRC devised strategies to boost revenue.

“The DMRC has to follow government guidelines on maintaining social distancing among passengers as far as farebox revenue is concerned. Non-farebox revenue depends on market conditions, and is governed by demand and supply principle,” the official added.

A letter from the Editor

Dear reader,

We have been keeping you up-to-date with information on the developments in India and the world that have a bearing on our health and wellbeing, our lives and livelihoods, during these difficult times. To enable wide dissemination of news that is in public interest, we have increased the number of articles that can be read free, and extended free trial periods. However, we have a request for those who can afford to subscribe: please do. As we fight disinformation and misinformation, and keep apace with the happenings, we need to commit greater resources to news gathering operations. We promise to deliver quality journalism that stays away from vested interest and political propaganda.

Support Quality Journalism
Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Jun 4, 2020 12:28:51 AM |

Next Story