Petrol to cost less,but CNG more as Delhi govt juggles VAT

However,more than fuel,spotlight was on Sheila Dikshit's clearance for spending on social sector.

Written by Agencies | New Delhi | Published: May 28, 2012 6:51:18 pm

Delhi budget today slashed VAT on the hiked price of petrol but slapped it on transport fuel CNG while beedis,unmanufactured tobacco,sarees,plastic cups and glasses would become costlier with fresh levies on them.

Petrol will be cheaper by Rs 1.26 and will now cost Rs 71.92 a litre after the cut which had risen to Rs 73.18 after last week’s hike. The CNG price will see an increase of Rs 1.77 from Rs 35.45 per kg which may trigger demand for hike in bus,taxi and auto fares besides having an impact on transportation cost of goods.

Hairpins,hairclips,safety pins,saree falls,kirpans,sacred threads,tricycles geometry boxes,crayons and pencil sharpners will also be cheaper with the budget removing or reducing VAT on them. The prices of UPS used for computers will go up as VAT on them has been hiked from five per cent to 12.5 per cent.

The Rs 33,436 crore budget,presented in the Delhi assembly by Chief Minister Sheila Dikshit,has its dose of populist measures with announcement of a number of social welfare schemes which are aimed at winning back support of voters ahead of next year’s assembly polls.

Other articles which get VAT exemption or slashing of rates include blood filters.

Reaching out to two lakh vulnerable households,Dikshit also announced a cash food subsidy of Rs 600 per month to the senior most female member of the family under a new programme titled Dilli Annashree scheme.

Putting maximum focus on social sector schemes,government allocated a massive Rs 9,796 crore to such programmes out of the total plan outlay of Rs 15,000 crore.

Officials said the cut in VAT on hiked component of petrol and levying of VAT on CNG will come into effect after the assembly approves the budget on June 4.

Defending the introduction of VAT for CNG,Dikshit said,”we have continously forgone VAT on CNG…it is relevant to mention that UP and Haryana are already levying 12.5 per cent and five per cent VAT respectively.”

Asked whether the VAT on CNG will trigger demand for hike in auto and taxi fares,Dikshit did not rule out the possibility but maintained that the increase is very minimum.

In a bid to make Delhi the “first kerosene-free state” in the country,she said her government plans to provide a one-time cash subsidy of Rs 2,000 to about 1.75 lakh households for obtaining an LPG connection and purchase of a gas stove. An outlay of Rs 40 crore has been proposed for the scheme.

A cash subsidy of Rs 300 per annum has been announced for purchase of writing material and stationary to students of class I to V while cash subsidy of Rs 400 will be given to students of class VI to VIII studying in government and government aided schools.

The government has also decided to give financial assistance of Rs 1,000 per month to poor persons suffering from HIV/AIDS for anti-retroviral treatment. Orphaned children infected with HIV/AIDS will be given Rs 2,050 per month.

Prioritising development of road infrastructure,Dikshit announced a number of projects including development of Outer Ring Road as ‘Signal Free Road’ involving a cost of about Rs 2,400 crore.

Transport sector got an allocation of Rs 3,372 crore for various projects,including purchase of 600 new low floor DTC buses. The allocation is 22 per cent of the total plan outlay.

The education sector has been allocated Rs 1,901 crore and water and sanitation sector Rs 1,800 crore. Another Rs 631 crore has been earmarked for development activities in unauthorised colonies.

The Chief Minister pegged the tax collection at Rs 26,150 crore. Non-plan allocation were pegged at Rs 18,268 crore.

To improve medical infrastructure,the government plans to construct six new 200-bedded hospitals,one new 100-bedded health centre and a 750-bedded hospital cum medical college.

The new hospital buildings are expected to come up at Burari,Ambedkar Nagar,Hastsal,Madipur and Sarita Vihar. In addition,it would also expand various existing hospitals with the construction of additional blocks.

The Chief Minister also announced setting up of a ‘Delhi Arogya Kosh’ with a corpus of Rs 110 crore which will be used to provide financial assistance to poor people suffering from life threatening diseases.

This year’s budget presentation was delayed due to coming into force of election code of conduct for municipal polls.

The government had presented a vote-on-account for expenses for two months due to Model Code. In the vote-on-account,Dikshit had pegged the total budget at Rs 30,970 crore.

In her speech,Dikshit said her government look forward to Delhi emerging as a caring city where citizens proudly aspire to and secure a future for themselves and their children.

“We will continue to look more intensely at the education,health and financial needs of the weaker sections. We would like to see Delhi developing into a good city to live in and a city that caters to the needs of all sections of the society,” she said.

The chief minister said the government will pay special attention to qualitative improvements of the vastly upgraded physical infrastructure and expansions of the roads,power,metro and water networks.

“The 12th plan period should see the city fulfilling the needs of the productive and creative citizenry. We shall be looking to the training,skill upgrading,and financing needs of the youth of Delhi… the underpinning principles of our vision for Delhi in the new Five Year Plan is of a good,productive and caring city,” Dikshit said.

On the education front,the chief minister said the Indira Gandhi Institute of Technology for Women will be upgraded to an university.

Populist measures galore as Dikshit govt reaches out to masses

Rs 600 in bank every month for the senior most female member of two lakh households,loan upto Rs five lakh to Dalits and minorities for setting up ventures — Delhi government today doled out as many populist measures to win over sections which moved away from Congress.

Giving a major push to social sector spending,Chief Minister Sheila Dikshit earmarked a whopping Rs 9,796 crore,65 per cent of the total plan outlay of Rs 15,000 crore in the budget for 2012-13.

“Government hopes to touch the lives of citizens in several positive ways. We will deepen and widen social safety network to cover the vulnerable sections of society,” she said in her budget speech.

Announcing the launch of the ‘Dilli Annashree Scheme’,a food security programme,she said government will provide food subsidy of Rs 600 per month in the form of cash transfer to two lakh vulnerable households not covered by either BPL cards or food supply under other schemes.

“The food subsidy of Rs 600 per month would be transferred directly in the bank account of the senior most female member of the household. I propose Rs 150 crore in the current financial year for this scheme,” she said.

The government also aims to make Delhi the “first kerosene free city” in the country by providing a one time cash subsidy of Rs 2,000 each to about 1.75 lakh households which rely on kerosene for cooking.

“This money will given to these households for obtaining an LPG connection and purchase of a gas stove. Rs 40 crore has been earmarked for this,” Dikshit said.

Providing employment opportunities for SC,minorities and OBCs,the Budget also proposes ‘Dilli Swarojgar Yojana for SC/ST/Minorities/OBCs’ in which the government will provide loans upto Rs five lakh to an entrepreneur willing to set up a venture in Delhi.

“I propose a budget provision of Rs 50 crore for this new plan scheme in the current financial year,” Dikshit said.

Dikshit also proposed to set up five half-way homes at Rohini,Dwarka and Narela at a cost of Rs 47 crore for treating mentally challenged persons who do not have a place to go to.

“New homes for the mentally challenged will be set up at Narela to provide accommodation to about 2,000 people.

Government has decided to set up a separate juvenile home for children up to the age of 10 years,” she said.

A new scheme will be launched for the rescue and rehabilitation of child labourers for which a budget provision of Rs five crore has been made.

Diskhit said her government is committed to ensure equal opportunity for all citizens and also its responsibility to protect and assure the rights of minorities.

“Government is particularly concerned about the urgent need to enhance the level of education,health,and employment potential of those communities 17 amongst the minorities that have lagged behind on human development indicators,highlighted by various studies,” she said.

Therefore,the government intends to open about 150 Anganwadi centers,15 new Gender Resource Centers (GRC) for women in minority concentration districts,and improve the physical infrastructure and learning environment in all Urdu medium schools.

“Through Mission Convergence,we intend to start 10 new centers for capacity building of unemployed minority youths to promote employment avenues for them,” the chief minister added.

Delhi Budget: Increase in EWS seats,100 schools for capital

A cash subsidy for students to buy writing material,increase in EWS seats in schools,100 new school buildings and upgradation of a technological institute for women into university are part of the Delhi government’s ambitious plans for education sector this fiscal.

In the Budget presented today,Delhi Chief Minister Sheila Dikshit has allocated Rs 1,901 crore,which is 12.67 per cent of the total plan outlay in 2012-13.

The outlay of Rs 1,313 crore in 2011-12 was 9.44 per cent of the total outlay in that financial year while in 2004-05,it was a meagre Rs 337 crore.

The government is proposing a cash subsidy of Rs 300 per annum to students of Class I to V,and Rs 400 per annum to students of Class VI to VIII in government and government- aided schools.

Currently,students of Class I to VIII get free textbooks and uniform subsidy. The new scheme would benefit about 8 lakh students and cost the exchequer Rs 30 crore.

Meritorious students might have more reason to celebrate with the city government announcing an increase in the award amount from Rs 5,000 to Rs 10,000.

Under the ‘Yuva Nirman Scheme’,the government is proposing to provide reimbursement for tuition fee to EWS students with family income of Rs 2 lakh,as opposed to the earlier cap of Rs 1 lakh.

The intake capacity of BSc course in Delhi Institute of Hotel Management has been increased from 60 to 120 students.

This institute got the National Award for Best Placement Performance for the year 2010-11 from the Tourism Ministry.

The Indira Gandhi Institute of Technology will be upgraded and restructured as Indira Gandhi Technical University for Women in the current fiscal through a bill proposed to be introduced in this session.

Twenty-six schools have been upgraded and five have been converted into Sarvodaya Vidyalays. New streams have been added in 44 senior secondary schools. More than 14,000 EWS category students got admission in private schools in 2011-12 under free ship quota. In 2012-13,about 20,000 EWS students are expected to get admissions in private schools in Delhi.

In 2012-13,’smart classes’ will be started in one section of each class from IX to XII in all Rajkiya Pratibha Vikas Vidyalayas.

Hundred sites have been identified for the construction of new school buildings. Possession of 90 sites has already been taken. Construction of 29 new schools buildings and 13 semi-pucca school buildings will be started in the current financial year.

Construction of buildings for Delhi government funded colleges,including Deen Dayal Upadhyay College at Dwarka,Shaheed Sukhdev,College of Business Studies at Rohini,Maharishi Balmiki College of Education at Rohini,Bhagini Nivedita College at Kair are proposed to be started during this fiscal.

Work on the second campus of Guru Govind Singh Indraprastha University at Surajmal Vihar will be taken up during the current financial year.

Rs 631 crore for unauthorised colonies in Delhi

Delhi government today proposed Rs 631 crore for development works in unauthorised colonies.

“If required,the amount will be suitably enhanced for development work in unauthorised colonies. It will no suffer due to lack of funds or want of funds,” Delhi Chief Minister Dikshit said in her budget speech in the Assembly.

The government has invested Rs 2,597 crore till March 2012 for providing civic services in these colonies and proposed to spend another Rs 631 crore in the current financial year.

The Delhi government had issued provisional regularisation certificates (PRCs) to over 1,200 unauthorised colonies ahead of assembly polls in 2008.

The then Dikshit government,while distributing the certificates,had promised to regularise the colonies if Congress came to power for third term.

Work of laying sewerage systems in villages and unauthorised colonies is in progress,Dikshit said,adding,with the covering of more villages and unauthorised colonies by sewerage system,the discharge of untreated waste water in the Yamuna will be checked.

The first allotment of 500 EWS houses,constructed under JNNURM would commence soon,Dikshit said.

To provide basic civic amenities in urbanised villages and rural villages,Rs 53 crore and Rs 192 crore would be set aside respectively.

Confirmed ownership rights would be granted to the original allottees of JJ Resettlement colonies,Dikshit said.

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