The Aam Aadmi Party won a landslide victory in the Assembly elections of Delhi last week. A look at the finances of the city-state gives a hint of how the party managed things smartly.

The job of course was easier than that of other states as Delhi's fiscal position has been strong. The size of Delhi’s Budget is close to Rs 55,000 crore, or about 6 per cent of its gross state domestic product (GSDP). What set the state apart is that in the last decade, its fiscal deficit hardly crossed 1 per cent of GSDP, while many other states grappled to contain it within 3 per ...