No new tax was introduced or hike effected in existing tax rates by AAP government in its Rs 48,000-crore budget for 2017-18 which lays major focus on education, healthcare, transport and social sectors.
The government announced slashing of VAT on Air Turbine Fuel (ATF) from existing 25 percent to one percent for direct flights between Delhi and remote areas identified under the Centre's Regional Connectivity Scheme (RCS).
Cost of sanitary napkins, plywood, black boards, particle boards and granite are also set to come down as VAT on them has been reduced from 12.5 percent to 5 percent. Sanitary napkins costing up to Rs 20 will be tax free.
Presenting the budget, Deputy Chief Minister Manish Sisodia said highest allocation of Rs 11,300 crore has been earmarked for the education sector followed by Rs 5,736 crore for health and Rs 5,506 crore for transport sector.
Sisodia said note ban has hit the national capital's economic growth and "forced" the city government to reduce spending on various developmental projects by about Rs 4,100 crore.
In its third Budget, the Kejriwal government abolished the plan and non-plan expenditure heads and presented it in terms of revenue and capital classification in line with the Centre's decision.
Sisodia said this was the first "outcome budget" of Delhi and that there will be quarterly monitoring of the outcome to ensure performance.
An outlay of Rs 3,467 crore has been set aside for social welfare schemes while Urban Development department got Rs 3,113 crore.
The total financial support to local bodies in 2017-18 has been proposed at Rs 7,571 crore which is 14.9 percent higher than the funds given in the Revised Estimates of 2016-17.
He said the Gross State Domestic Product of Delhi at current prices is likely to increase to Rs 6.22 lakh crore in 2016-17 from Rs 5.51 lakh crore in 2015-16, indicating a growth of 12.76 percent.
"Due to demonetisation there is a negative trend seen in the economic scenario during the last four months. I have seen the commodity-wise data which reflects economic scarcity in most of the markets due to demonetisation. I think the long term effect of this will also be seen in the next fiscal,"said Sisodia.
In the health sector, Sisodia said the total number of hospital beds in all facilities run by Delhi Government will be enhanced from 10,000 to 20,000 in next 18 months.
He said the government is also working on schemes of issuing Health Card and to provide health insurance to all citizens of Delhi.
The government also announced setting up of 1,000 Mohalla Clinics in the next financial year while medicines and diagnostics will be made free in poly clinics. The number of poly clinics will be enhanced from 23 to 150 by the end of next financial year.
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