Deputy Chief Minister and Finance Minister Manish Sisodia introduced no new taxes or hike in existing tax rates in his ₹48,000-crore budget for the Capital on Wednesday.
Instead, tax rates were cut on essentials like sanitary napkins.
This time, the focus was again on the education and health sectors, which have been allocated 24% and 12% of the total budget.
Further, to boost connectivity in smaller towns and remote areas, particularly Northeast India, the Value Added Tax (VAT) rate has been reduced from 25% to 1% on Air Turbine Fuel (ATF) for flights operating under the Regional Connectivity Scheme (RCS).
‘Note ban to blame’
The Gross State Domestic Product (GSDP) and tax collection have dropped, for which the government has blamed demonetisation. “The drop is due to demonetisation. But, the economy of the State will grow. The note ban has led to a contraction in the city’s estimated GSDP for the ongoing financial year (at constant prices), although it will still be higher than the projected growth at the national level. We are hopeful that tax collection will go up once the Goods and Services Tax (GST) is rolled out,” said Mr. Sisodia.
With the municipal elections lined up for next month, the government has increased the financial assistance for local bodies by 14.9%.
Also, in an attempt to woo people from eastern Uttar Pradesh and Bihar — who are referred to as Purvanchalis — a provision of ₹20 crore has been made to develop Chhath ghats. Chhath is the festival native to the Purvanchal region. as part of which people take a dip in the Yamuna. As many as 40 lakh Purvanchali voters live in Delhi.
Mr. Sisodia, who put forth an “outcome budget”, said it would act like a “contract” between the government and the people.
Now, the government will put out the expected expenditure under specific heads on its website on March 31.
Swaraj Fund
Despite last year’s funds lying unused, the government has again allocated ₹350 crore to the Swaraj Fund. This, even as the proposal to constitute mohalla sabhas (public assemblies) is yet to be approved by the Lieutenant-Governor.
Also known as the Citizen Local Area Development (C-LAD) Fund, the Swaraj Fund was created in 2015.
As part of this, all development work was to be decided through mohalla sabhas , which would consist of local residents.
DCW budget hiked
Further, with air pollution coming up as a major cause for concern, ₹57 crore has been set aside for the Environment Department that will spearhead the anti-pollution initiative in the Capital.
Also, the budget for the Delhi Commission for Women (DCW) has been increased by three times with a total allocation of ₹20 crore. However, the scheme to constitute mohalla rakshak dals in each neighbourhood, a vigil team to focus on safety of citizens (particularly women), has been disbanded. “The scheme wasn’t feasible. It has been discontinued,” said Mr. Sisodia.
