Deputy Chief Minister Manish Sisodia, who also holds the Finance portfolio, on Monday presented a Rs 46,600 crore annual Budget for 2016-17, pegging the Plan outlay at Rs 20,600 crore and Rs 26,000 crore for non-Plan. Expectedly, education, health and transport sectors got the lion’s share of the total allocation for a second straight year. Rs 10,690 crore was earmarked for education, a rise of 8.68 per cent over last year; Rs 5,259 crore for healthcare, a hike of Rs 472 crore and Rs 3,943 crore for transport.
In a major relief to Delhiites, the Government rationalised the VAT structure which may reduce the cost of products such as sweets, snacks, readymade garments, e-rickshaws, battery-operated vehicles, hybrid vehicles and marble from 12.5 to five per cent. The Government proposed 12.5 per cent VAT on watches, five per cent on textiles, five per cent on plastic waste, schoolbags and footwear. The subsidy on power would be continued as the Government proposes Rs 1,600 crore for the next fiscal year for subsidy. In a move that will benefit the hotel industry, luxury tax will be applicable on hotels charging Rs 1,500 or above for a room. Also, Rs 676 crore was set aside to provide drinking water to all authorised and unauthorised colonies by December 2017 through pipelines.
It also proposed to set up Aam Aadmi canteens to provide nutritious and hygienic food at low prices, two elevated BRT corridors — from Anand Vihar Terminal to Peeragarhi (East-West corridor-29 kms) and Wazirabad to Indira Gandhi International Airport.
Rs 10 crore has been alloted for the construction of Aam Aadmi Canteens.
Presenting the Budget, Sisodia, said, “The highest allocation of Rs 10,690 crore (23 per cent) has been earmarked for education. Of this, Rs 4,645 crore is for plan expenditure.”
Taking a dig at the BJP and the Congress, Sisodia said, “We are increasing the education Budget every year whereas the Central Government, irrespective of the political party in power, has been decreasing the percentage of Budget allocation for education every year.”
Chief Minister Arvind Kejriwal praised the Budget. “This is a Budget for the people, for aam aadmi.”
“The health department is being allocated Rs 5,259 crore... Delhi will get 1,000 mohalla (community) clinics and 150 polyclinics,” said Sisodia. The allocation for health last year was Rs 4,787 crore. The transport department has allocated Rs 3,943 crore (19 per cent of the total Budget).
Presenting the budget estimates for 2016-17, Sisodia said that the proposed budget of Rs 46,600 crore will be financed from our tax revenue of Rs 36,525 crore, non-tax revenue of Rs 996 crore, capital receipts of Rs 381 crore, small savings loan of Rs 3,174 crore, compensation of CST/VAT of Rs 1,400 crore, Centrally-sponsored Schemes of Rs 1,300 crore, Normal Central Assistance of Rs 413 crore, share in Central taxes of Rs 325 crore, other receipts from Government of India of Rs 432 crore and the remaining amount from the opening balance.
The proposed total expenditure of Rs 46,600 crore includes Rs 6,919 crore to the local bodies in 2016-17 as against Rs 5,908 crore in Budget estimate and Rs 5,999 crore in revised Budget estimate 2015-16.