Delhi govt spent Rs 1073.16 Cr in advertisements in last 3 financial years, SC told

Maintaining the expenditure on publicity is a necessary component of good governance and effective administration, the Delhi government has informed the Supreme Court that it has spent Rs 1073.16 Cr in advertisements in last three financial years.

"The funds allocated for publicity purposes are aimed at maximising the reach and impact of government policies, ultimately benefiting the public at large," it said. 

On July 3, the Supreme Court had directed the Delhi government to furnish details of money spent by it on advertisements in the last three financial years, as the AAP government expressed its inability to provide funds for regional rapid transit system (RRTS) projects for Delhi-Alwar and Delhi-Panipat corridors.

Giving details the funds utilised for publicity, the AAP government told the top court that the amounts are primarily being spent on publicity by the Delhi Government for advertising and disseminating information about its various schemes and programs to the wider population. 

"By investing in publicity, the Delhi government aims to bridge the gap between the government and its citizens, ensuring that the benefits of its schemes and programs reach the intended beneficiaries to enable the public to make informed decisions and take advantage of the resources provided by the government," it said.

The Delhi government also contended that the expenditure towards publicity for the Capital State of Delhi is "the most reasonable, economical and efficient way of communicating the work of the government and is not excessive in any manner either in absolute or in terms of percentage as compared to the other parts of India".

The top court had earlier issued direction to the Delhi government to furnish the details of advertisements in view of the lack of availability of funds cited by it as the reason for its inability to contribute its share of Rs 3,261 Crores and Rs 2,443 Crores towards the construction of the Delhi-Gurugram-Rewari-Alwar and Delhi- Sonipat-Panipat corridors. Apart from the said liability. The Delhi Government is also required to contribute Rs 1,180  towards its share for the construction of the Delhi-Meerut Corridor.

The top court had earlier permitted the Delhi Government to utilize Rs 265 Crores and Rs 500 Crores out of the Environmental Compensation Charge ("ECC") funds to meet its liability in respect of the latter project.

"It is crucial to emphasise that the Delhi Government acknowledges the significance of infrastructure development and the construction of the corridors in question. However, without adequate financial resources, the Delhi Government has not been able to make budgetary allocations. One of the significant reasons for the scarcity of funds is the termination of the GST Compensation Programme in June 2022, which has severely impacted Delhi. The promise of GST leading to buoyant state revenue has not been realised due to multiple reasons, including the impact of the Covid-19 pandemic," it said.

It said the resultant gap in revenue collection has led to a reduction in expenditure in various developmental programs and the overall development of the National Capital Territory. The Government of Delhi has also appealed to the Central Government to continue providing compensation for the next five years until the GST collections achieve the 14% annual growth rate, it said in an affidavit.

The Delhi government further said during the year 2022-23, the amount of GST compensation received by Delhi from the Central Government  was Rs 10,000 crores. 

However, during the current financial year 2023-24, Delhi will receive only Rs 3,802 crores on account of arrears of GST compensation. As such, the sudden cessation of GST compensation has severely impacted the financial resources of the State Government. This has led to a substantial reduction in the availability of funds, it said.