Delhi’s per capita income third highest in the country: economic survey

Vaccination played a big role in minimising loss of lives and boosting the confidence in economy: survey

Updated - March 26, 2022 09:22 am IST

Published - March 25, 2022 11:51 pm IST

The per capita income and the Gross State Domestic Product (GSDP) of Delhi increased during the second year of the pandemic (2021-22), according to the Delhi Economic Survey 2021-22, which was tabled in the Delhi Assembly on Friday. Both these economic indicators had dropped during the first year of the pandemic (2020-21).

The government’s tax collection also fell by 19.53% in 2020-21 (provisional value) compared with the previous year due to the pandemic, the survey reported.

The GSDP and per capita values for the financial year 2021-22, are advanced estimates (AE) and not actual values, the survey report clarified, as the financial year is yet to be over and these values are subject to changes.

The survey stated that in terms of per capita income, Delhi ranked just behind Goa and Sikkim, which have the highest and second-highest per capita income in the country.

Analysing numbers

The dip and rise in both GSDP and per capita income in Delhi follow a pattern seen nationally, as per the report. Saket Surya, senior analyst, PRS Legislative Research, said that a similar trend was seen in many other States.

“A fall in GSDP means that Delhi produced fewer goods and services because of the lockdown restrictions as well as a weaker demand as income of people might have seen a fall due to the pandemic,” Mr. Surya said.

Meanwhile, the fiscal deficit, which is the shortfall in the government’s total income compared to its total spending, increased to ₹9,972.96 crore in 2020-21, compared to ₹3,227.79 crore in 2019-20, as per the survey.

One of the reasons for this is the drop in tax collection to ₹29,425.33 crore in 2020-21 (provisional value) from ₹36,565.87 crore collected in 2019-20.

Mr. Surya said that the increase in fiscal deficit could be due to the pandemic and subsequent lockdowns, as the government’s revenue decreased, whereas its pandemic-related expenditure increased.

The report stated that the economy continues to be plagued by uncertainty, with resurgent waves of mutant variants, supply-chain disruptions.

“Vaccination has played a major role in minimising loss of lives, boosting confidence in the economy towards reopening of activity and containing the sequential decline in output due to second wave,” it read.

Transport sector

According to the survey, the vehicular population of the Capital registered an increase of a little over 3%, reaching over 1.22 crore with the rise contributed mainly to four wheelers, two-wheelers and goods carriers.

While cars and jeeps accounted for around 28% of the total registered motorised vehicles, two-wheelers constituted about 67% of the total registered vehicles in the city.

However, this rate of growth in the number of registered vehicles was the lowest in a decade due to the economic effect of COVID-19, a senior Transport Department official said. 

The Delhi Transport Corporation (DTC), with the thinnest fleet since 2008-09 at 3,760, saw its ridership contract to 12.24 lakh – the lowest since 2005-06. The daily average passenger ridership in cluster buses was 8.5 lakh during the year 2020-21 down from 17.71 lakh pre-pandemic year of 2019-20.

The transport department official attributed the fall in ridership also to the after-effect of the pandemic, during which fewer passengers were allowed on buses being operated by the public transporter, due to the emphasis on social distancing aboard public transport.

Meanwhile, the report stated, Phase III of the Barapullah Flyover was likely to be completed by the end of this month and the extension of the Ashram flyover to the DND flyover would be completed by August.

Other indicators

The forest and tree cover area in the city, which has been increasing steadily since 1997, increased to 342 sq. km. in 2021, which is 23.06% of Delhi’s total geographical area, as per the survey.  

Total fertility rate (TFR) of Delhi is 1.5, which is less than the national average of 2.2 and among the lowest in the country, the survey said. Also, the “crude death rate” of Delhi is 3.3%, which is the lowest in the country.

(with inputs from Jatin Anand)

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