A new Comptroller and Auditor General report highlights Delhi’s lagging share in India’s national GDP and rising financial strains, raising concerns about long-term economic and infrastructural growth.
A Comptroller and Auditor General report tabled in the Delhi Assembly by Chief Minister Rekha Gupta on Monday has pointed to a slower pace of economic expansion in the capital than in the rest of India, even as the city’s gross state domestic product continued to grow in 2024-25. The report said Delhi’s GSDP reached ₹12.15 lakh crore last financial year, up 9.17% from the previous year, but its share of national GDP fell to 3.67%, down from 4% in 2015-16.
The CAG said the longer-term picture showed Delhi losing ground relative to the broader Indian economy. Per capita GSDP rose at a compound annual growth rate of 6.39% between 2015 and 2025, below the 8.14% growth recorded for per capita GDP nationally over the same period. The report said this meant Delhi’s per-person economic output remained higher than the national average, but by a narrower margin than a decade earlier.
The audit also flagged pressure on the city’s finances. Revenue receipts increased 9.57%, helped by stronger tax collections, especially goods and services tax, but non-tax revenue fell 11.04% and grants from the Centre declined. At the same time, revenue spending rose sharply, with subsidies and other committed costs absorbing more of the budget and leaving less room for infrastructure investment.
According to the CAG, subsidies increased by ₹3,222 crore between 2015 and 2025, a rise of 172.48%, driven largely by a ₹2,033 crore jump in power subsidies. Capital expenditure, meanwhile, has trended lower as a share of total spending and fell to ₹3,695 crore in 2024-25 from ₹6,855 crore a year earlier. The report said the drop reflected reduced spending on roads, bridges and road transport, underscoring the strain on Delhi’s ability to expand long-term public assets even as overall expenditure has continued to rise.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
