Delhi

Delhi’s per capita income dips 5.9%, GSDP shrinks by 3.92%

(From left) L-G Anil Baijal, CM Arvind Kejriwal and Speaker Ram Niwas Goel before the budget session.   | Photo Credit: SUSHIL KUMAR VERMA

The per capita income of the people of Delhi has fallen by 5.91% (at current prices) to ₹3,54,004 during 2020-21, compared to ₹3,76,221 in 2019-20. Also, the Gross State Domestic Product (GSDP) (at current prices) fell by 3.92% in 2020-21 to ₹7,98,310 crore from ₹8,30,872 crore in 2019-20, as per the Economic Survey of Delhi 2020-21 tabled in the Delhi Assembly on Monday.

This was due to the effect of COVID-19 and the series of lockdowns, which disrupted the economy across the world, according to the survey report.

Less business, revenue

“Because of COVID-19 pandemic, business was less in the market and because of this revenue was less for the government. So, the financial condition was weak, and we couldn’t spend on some schemes as we had expected to,” Finance Minister Manish Sisodia said.

Experts said that the fall in income and GSDP shows that there was less money in the hands of people, which reduced their purchasing power, and it also shows that investments had reduced.

“The actual per capita income will be even lesser, as this data does not take into account the unorganised sector, such as daily wage labourers, who were heavily hit during the pandemic. Also, the unorganised sector has not recovered compared to organised sector,” said Arun Kumar, former Professor at Economics Department of JNU.

At this stage, he said, the Delhi government should work to “generate employment” and spend more money on health, education, or small infrastructure projects, which generates employment. “This will put money in the hands of the people and increase their purchasing power,” Mr. Kumar said.

He also said that the government should also try to look for an “urban employment scheme” on lines of Mahatma Gandhi National Rural Employment Guarantee Act to (MGNREGA).

“The year 2020 witnessed unrivalled turmoil with the novel COVID-19 virus and the resultant pandemic emerging as the biggest threat to economic growth in a century. The pandemic has been unique in its wide-ranging effects on almost every section of the economy and the society. The pandemic impacts both supply and demand in the economy,” the report said.

But the government expects the economic condition to pick and register growth. “With the economy’s returning to normalcy brought closer by the initiation of a mega vaccination drive, hopes of a robust recovery in services sector, consumption, and investment have been rekindled. In 2021-22, a sharp recovery of real GSDP of Delhi with a double-digit growth is expected based on a low base effect and inherent strengths of the economy,” the report said.

The report also said that Delhi has maintained its consistent revenue surplus which was ₹7,499 crore during 2019-20 (Prov.) as compared to ₹6,261 crore during 2018-19. The report also said that about 93% households of Delhi now have access to piped water supply.

Also, about 30.74 lakh Foreign Tourist Arrivals (FTAs) was recorded in Delhi during 2019.

As per the report, the water supply capacity of the Delhi Jal Board (DJB) has been augmented by 12% during last 10 years. “The capacity, which was 810 Million Gallons per Day (MGD) in 2009, has been increased to 911 in 2019. This has further increased to 916 MGD in the year 2020,” it said.

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Printable version | Apr 14, 2021 7:55:32 PM | https://www.thehindu.com/news/cities/Delhi/delhis-per-capita-income-dips-59-gsdp-shrinks-by-392/article34023402.ece

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