New Delhi: No new tax was levied and chilly spray, desi ghee and LED lights will be cheaper with Delhi government on Wednesday proposing to reduce or eliminate VAT on them in its Rs 37,450 crore budget, which focused on social sector in an election year as Congress seeks a record fourth term in power. Presenting the budget in the state assembly, Chief Minister Sheila Dikshit amid occasional protests by opposition BJP MLAs, said "I am proposing a tax free-budget".
In her around 90-minute budget speech, Dikshit expressed confidence that the national capital's growth will touch nine per cent against the national average of five per cent as she outlined the development activities taken up by her government in several sectors, including health, water, infrastructure and transport. With assembly poll expected in November 2013 and after a drubbing Congress got in 2012's municipal election, Dikshit sought to woo the electorate with enhanced social spending, earmarking Rs 10,351 crore or 65 per cent of total plan outlay of Rs 16,000 crore.
The non-plan outlay is Rs 21,000 crore. Among the sectors, transport has got the highest allocation of Rs 3,876 crore followed by Health Rs 2,490 crore, Education Rs 1981 crore, Urban Development Rs 1840 crore and Water Rs 1,665 crore.
"Delhi is on track to grow at nine per cent compared to five per cent for the country...The per capita income of Delhi now stands at Rs 2,01,083. It has gone up by five times since this government came into power. In 1998, when we came to power it was Rs 40,060," she said.
The budget has completely withdrawn the 12.5 per cent VAT on chilly spray, a self-defence device which could be used against attackers in the city which earned notoriety for crime.
against women. "It is our duty to empower women by way of self-defence," she said.
Last year, Dikshit had presented a Rs 33,436 crore budget with a plan outlay of Rs 15,000 crore. In 2011-12 when she had presented the budget for the first time, the budget size was Rs 27,067 crore with a plan outlay of Rs 13,600 crore. This was the third consecutive year Dikshit presented the budget since taking over the Finance portfolio.
Noting that LED lights will save power and also improve environment, Dikshit proposed a reduction of VAT from 12.5 per cent to five per cent. The Chief Minister, however, completely withdrew VAT on Refuse Derived Fuel in a bid to promote proper solid waste management.
She also exempted VAT on tiles and kerbstones made from 'malwa' and construction debris as its disposal has become a matter of concern. For students and children, Dikshit exempted VAT on pencil and geometry boxes and also on 'charki and manja' used for flying kites.
All these are now taxed at 12.5 per cent. In a Holi gift for Delhiites and to promote organic stuff, the budget also proposed exempting VAT for organic colours. Footwear less than Rs 500 has also been exempted from VAT.
The VAT on desi ghee, which is consumed in large quantity in the city, has been brought down to five per cent from 12.5 per cent. Providing relief for citizens, Dikshit extended the date of enrolment under Dilli Annashree Yojana to July 31 2013 while announcing the launch of a contributory pension scheme for employees in unorganised sector.
While an employee has to deposit Rs 12,000 per year for the 'Dilli Swabhiman Yojana', the government will also chip in with the same amount. Transgenders, who are living in the national capital for the past three years, will also get government support with Dikshit announcing a Rs 1,000 financial assistance per month.
They will also be eligible to get benefit under Dilli Annashree Yojana from next month. Wooing RWAs in an election year, Dikshit also proposed to give a Rs one lakh grant to such organisations which can provide space for gyms run on no-profit, no loss basis. Ownership rights to original allottees of 45 JJ resettlement colonies will also be granted, she said.
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