Delhi Govt presents populist budget with assembly polls in sight

Playing safe ahead of assembly elections in the capital next year, the Delhi government on Monday refrained from introducing any new taxes and exempted a number of articles from VAT in its annual budget.

The budget for 2007-08 presented by Finance Minister A K Walia, with a total plan outlay of Rs 18,561 crore and non-plan size of Rs 9,461 crore, also gives a major thrust to the water, power and transport sectors.

"We have a better financial position. So we have decided not to impose any new taxes," he said presenting the budget on the floor of the house.

Stoves run on kerosene and petromax are among the articles exempted from vat.

Utensils could also cost less now, with the VAT on all such kitchenware proposed to be reduced from 12.5 per cent to four per cent. Earlier, only pressure cookers attracted a lower VAT rate of four per cent.

The budget also proposed keeping disabled persons running trading establishments out of the ambit of VAT.

Aimed at giving an impetus to the infrastructure in the capital before the 2010 Commonwealth Games, the total outlay for the transport sector has been increased from Rs 1,414 crore in 2005-06 to Rs 2,270 crore this year.

The DTC fleet will be augmented with the purchase of 500 new modern and low floor buses during the current financial year, Walia said presenting the budget on the floor of the assembly.

A comprehensive transport demand for forecast study and development of an integrated road cum multi-modal transport network for Delhi has been commissioned, Walia said adding the construction on all six corridors for Metro Rail was progressing as per schedule.

Work on corridors for high capacity bus system would be completed by early next year, he said.

With the capital facing an acute water shortage, the allocation for the water supply and sanitation sector has been provided with an outlay of Rs 1,268 crore as compared to Rs 833 crore last year, an increase of 52 per cent.

"We have decided to construct 53 underground reservoirs in different parts of the city and equitable distribution of water supply by December, 2009," Walia said.

The power sector, which has been a constant worry of the government, has got the biggest hike in allocation this year with an increase from Rs 259 crore last year to Rs 1,250 this year.

Bio-fertilisers, micronutrients and plant growth promoters have been exempted from vat in a move aimed at giving a boost to the agriculture sector.

To help patients of Thalassemia, blood filters, which are essential in the treatment of the disease have also been exempted from VAT.

Cigarette and other tobacco products will become more expensive with the government levying vat at the rate of 12.5 per cent on them.