New Delhi: Playing safe ahead of Assembly elections in the Capital next year, the Delhi government on Monday refrained from introducing any new taxes and exempted a number of articles from value-added tax (VAT) in its annual budget.
The budget for 2007-08 presented by finance minister A.K. Walia, with a total plan outlay of Rs18,561 crore and non-plan size of Rs9,461 crore, also gives a major thrust to sectors such as water, power and transport.
“We have a better financial position. So we have decided not to impose any new taxes,” he said, presenting the budget on the floor of the House.
Stoves run on kerosene and petromax are among the articles exempted from VAT.
Utensils could also cost less now, with the VAT on all such kitchenware proposed to be reduced from 12.5% to 4%.
The budget also proposed keeping trading establishments run by physically-challenged persons out of the ambit of VAT.
Aimed at giving an impetus to the infrastructure in the Capital before the 2010 Commonwealth Games, the total outlay for the transport sector has been increased from Rs1,414 crore in 2005-06 to Rs2,270 crore this year.
The DTC fleet will be augmented with the purchase of 500 new modern and low-floor buses.
The government hiked its allocation for the energy sector by a whopping Rs991 crore.