The Aam Aadmi Party (AAP)’s second budget in Delhi that was presented on Tuesday while continuing to concentrate on core sectors like education, health and transport also seeks to make life more affordable for citizens by slashing VAT rates on at least eight items.
The move to slash VAT rates is one of dual intent – stay the course on “people friendly” policies, widen the Delhi tax base and hope to increase revenue. With no new taxes imposed and just one raised, the tax proposals could reduce Delhi’s tax revenues which in the 2015-16 financial year contributed to more than 65 per cent of its total revenue. Deputy Chief Minister Manish Sisodia, who also holds the finance portfolio, said in his budget speech that his Rs 46, 600 crore budget was financed primarily from Delhi’s own tax revenue of Rs 36, 525 crore.
The opposition BJP and Congress in Delhi claimed that by decreasing VAT rates without prior research could be disastrous for a state that is solely dependent on its own tax revenues. First there are subsidies for power and water and now slashing VAT rates. But I have an exact question just like one of the BJP leaders: “How can the state promise developments without money?” Is it a gimmick like the earlier ones?
What will go cheap this season in the Capital?
- e rickshaws, battery operated vehicles
- Hybrid vehicles
- Sweets, snacks and savoury items
- All ready-made garments
ED’s Tip to The college crowd: Hangout at Savoury selling cafes, shop like crazy and take out your girlfriend and friends in your new hybrid cars.
The AAP Govt reveals plans to build two new BRT corridors
While the AAP government initiated the demolition of south Delhi’s BRT corridor built by the erstwhile Congress administration, Finance Minister Manish Sisodia Monday announced that the government will construct two elevated BRT corridors for east-west and north-south connectivity. Sisodia announced that a 29-km east-west elevated BRT corridor will be built from Anand Vihar Terminal to Peeragarhi and a 24-km north-south elevated BRT corridor will stretch from Wazirabad to the airport.
*Is AAP government following the Hypocrisy policy? Or are suffering from short term memory loss?*
For cleaner air and clearer roads AAP government unveils big plans for transport sector
Two weeks before the second phase of its flagship odd-even scheme kicks off, the AAP government allocated a major portion of budget funds to transport and road infrastructure, to encourage measures to curb pollution in Delhi and decongest its roads.
Where is AAP government lacking even after disclosing the current budget?
The education sector has not seen any development. They promised to set up new schools in the first year of their governance. Now they have constructed temporary structures and started second shifts in a few schools. Then they combine these numbers and claim these are ‘new schools’. If we have 500 schools in Delhi, and you start evening shifts in them, would you be able to say that you have built 500 additional schools in the city? This is misleading. Not even a single new school has been constructed. So AAP government has been really lacking out!
ED rates this year’s budget as a ‘Misguided yet over promising’ budget. What are your views? Let us know!
Views presented in the article are those of the author and not of ED.