New Delhi's economy estimated to grow at 12.76% in 2016-17

The Delhi government on Wednesday pegged the growth of the city's service-driven economy at 12.76% for the current fiscal as against the country's projected 7.1%. A day ahead of presentation of the budget, the AAP government tabled the Economic Survey in the assembly, estimating the size of the GSDP (Gross State Domestic Product) at 6.2 lakh crore for 2016-17, at current prices.

It said the economy of the capital city is estimated to grow at 12.76% as against 12.09% logged during 2015-16. The report has not mentioned about any impact of demonetization on the city's economy. According to the report, the per capita income of Delhi, which is already three times the national average, is likely to cross Rs 3 lakh during 2016-17. "The per capita income of the city was nearly three times the national average at Rs 2,73,618 in 2015-16 as compared to Rs 2,49,004 in 2014-15," it said.

The report, tabled by Deputy Chief Minister Manish Sisodia, said Delhi's economy has a predominant service sector whose contribution stands at at 82.26% to the GSDP during 2016-17 followed by contribution of secondary and primary sectors. The report pegged Delhi's tax collection at 20.84% in the current year, but there has been a reduction in its revenue surplus. The city collected Rs 30,225.16 crore in taxes during 2015-16 with a growth rate of 13.61% as compared to the growth of 2.64% in 2014-15, it said.

Revenue surplus (actual amount of net income over and above the projected amount) of Delhi has been pegged at 0.89% (estimate) of the GSDP in 2016-17. It was 1.57% of the GSDP in 2015-16 at Rs 8,656 crore and Rs 6,075 crore in 2014-15, the report said. However, the survey said Delhi had a fiscal surplus, which means its income exceeded its spending, in 2015-16 at Rs 1,321.92 crore, which is 0.24% of the GSDP, thus the "overall financial position of Delhi is sound".

"Excise recorded the highest growth of 23.82%. Tax collections under stamps and registration, VAT and Motor Vehicle Tax recorded a growth of 20.85, 10.70 and 3.09% respectively," it said. According to the report tabled in the Delhi Assembly, the per capita income of Delhi, which is already three times the national average, is likely to cross Rs 3 lakh during 2016-17. "The per capita income of the city was nearly three times the national average at Rs 2,73,618 in 2015-16 as compared to Rs 2,49,004 in 2014-15. "The advance estimate of per capita income of Delhi at current prices during 2016-17 is estimated at Rs 3,03,073," it said.