Capital Conundrum: Welfare Promises Versus Infra Push

Amid increasing poll promises ahead of Delhi elections, SHIKHA CHATURVEDI analyses the spending choices of Congress and AAP regimes, and the fiscal challenges ahead for the next government

- SHIKHA CHATURVEDI

The political scenario in Delhi is often criticised for promoting "revdi culture", which has become central to election promises across parties. This criticism stems from a perceived prioritisation of social welfare schemes over infrastructural development. In recent years, inadequacies in Delhi's infrastructure have become increasingly evident, adding weight to these arguments.

A comparison between Sheila Dikshit government and the Aam Aadmi Party regime shows the differences not just in spending figures but in the underlying governance philosophy driving these choices.

During Dikshit's tenure (2004-2013), Delhi saw a steady rise in revenue expenditure, which grew from just over ₹5,000 crore in 2004 to more than ₹22,000 crore by 2013. Revenue expenditure accounted for about 45 per cent of total expenditure in 2004, but increased to about 65 per cent by 2013. While revenue expenditure gained momentum during this period, there was also a conscious effort to allocate substantial funds for infrastructure projects.

Capital outlay during this period peaked in 2007-08, crossing 20 per cent of the total expenditure, and remained in double digits throughout her time in office. Her government focused on building flyovers, expanding the Delhi Metro network, and enhancing basic infrastructure, which became defining features of her governance.