Sheila comes out with populist budget in election year

With assembly election just months away, Delhi Government today presented a populist "tax free" Rs 37,450-crore budget for 2013-14, focusing on welfare schemes while slashing or removing VAT on a number of household items.
Presenting the budget, third by her and a consecutive 15th for her government, Chief Minister Sheila Dikshit proposed to cut VAT on desi ghee, environment friendly LED lights while withdrawing the tax on chilly spray, geometry boxes, organic gulal, manza used for flying kites and footwear costing less than Rs 500.
She did not levy any new tax and there was no hike in existing taxes.

"I do not propose to levy any new taxes or revise upwards rates on any item. In other words I am proposing a tax free budget," Dikshit said in her around 90 minute speech.
As per budget proposal, tiles and kerbstones made from construction debris will not attract 12.5 per cent VAT while the tax has been withdrawn on items used for religious fasting such as water chestnut (Singhara), rock salt (Sendha), buck wheat (kuttu) and buck wheat flour.
In the budget, which set aside Rs 16,000 crore for plan outlay, Dikshit announced measures to streamline the tax administration to increase revenue collection.

She expressed confidence that the 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 this year and after a drubbing in last year'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 the track to grow on 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.