Delhi govt's maiden Budget delivers on many poll promises

Populism drove Aam Aadmi Party's election campaign. For delivery, realism took the centre stage in AAP's maiden Budget for the National Capital.

It promised a lot before coming to power. Now the government is setting small, realistic goals: like free Wi-Fi will first be available only to schools, colleges and villages. Presenting the first full-fledged Budget for 2015-16, the AAP government gave a major boost to the social sector with a significant increase of Rs 2,700 crore.

Education, health, transport and social welfare grabbed lion's share - 72.38 per cent - in the Rs 41,129 crore Budget presented by Deputy Chief Minister Manish Sisodia on Thursday.

Expenditure on education was the key attraction of the Budget which was more than double as compared to the previous year. Sisodia termed it an 'investment' for betterment of public life. At a time when controversies had begun denting the government's reputation, it used the Budget as an opportunity to change its image to one of 'reformist'.

The government increased no tax and promised to eliminate 'licence raj' along with a focus on curbing pollution. The move is seen as an attempt to woo the middle class and the trading community, the two potential vote banks in Delhi.

Aid to civic bodies

The government also sought to overcome the recent spat over monetary assistance to municipal corporations in Delhi by increasing financial aid to the civic bodies. Sisodia announced the total financial support of Rs 5,908 crore to the local bodies for the year 2015-16 - which is 14.4 per cent of the total Budget.

The move also aims at strengthening AAP's prospects for the upcoming municipal elections in Delhi. The row over non-payment of salary to sanitation workers had created much furore in the political corridors of Delhi in the last few months.

Sectors like education, healthcare, transport, water, power saw major jump in allocation while Rs 50 crore has been set aside for providing free Wi-Fi facility in colleges and villages, which was a major election promise of AAP. Steps like installation of CCTV cameras in DTC buses and every classroom in government-run schools were also announced.

Calling it the country's first "Swaraj Budget" which was finalised following extensive dialogue with the public, Sisodia allocated Rs 253 crore towards 'Swaraj fund'. The BJP, however, criticised the Budget and termed it an attempt to mislead the masses. Leader of Opposition in Delhi Assembly Vijender Gupta questioned the idea behind 'Swaraj fund', saying it was unclear as to how the money under this head will be used. "The budgetary provisions are as misleading as AAP's poll promises. Allocation of Rs 20 crores to the selected 11 constituencies is unjust," said Gupta.

The government allocated Rs 9,836 crore for the education sector of which Rs 4,570 crore was given under the plan outlay, an increase of around 106 per cent over the last Budget. In an effort to curb vehicular emission, Sisodia said government will penalise heavy goods diesel vehicles entering Delhi from other states. He said polluting trucks of different categories of four-, six-, 10- and 14-wheeler would be penalised Rs 500, Rs 750, Rs 1,000 and Rs 1,500 respectively.

"A fine of Rs 100 will be levied on polluting tempos. I also propose to increase the registration tax by 25 per cent of the existing rate for all categories of private vehicles registered in the name of companies and partnership firms," he said. Sisodia called the Budget taxfree as no increase in VAT has been proposed. He said efforts are on to ensure a uniform tax regime across northern states to minimise tax arbitrage and eliminate corrupt practices. As per the tax proposals, utensils made of metal like pressure cookers, furniture and wax items will be cheaper while going to a gym, club and spa and watching movies in multiplexes will be dearer.

A monthly entertainment tax of Rs 40 is proposed to be levied on cable TV/DTH services. This, however, invited sharp criticism from the RWAs which said the increase in taxes would increase the cost of living.