​Delhi Budget Highlights

The Minister of Finance of Delhi, Mr. Manish Sisodia, presented the Budget for Delhi for the financial year 2016-17 yesterday.

Some key budget highlights are given below:

1. The Gross State Domestic Product of Delhi for 2015-16 is estimated to be Rs 5,58,745 crore (current prices). This is 13% higher than the estimates for 2014-15. GSDP estimates for 2016-17 are not available.
2. Allocation towards the education sector is expected to increase by 33%, followed by a 27% increase each in allocations to public health and development. In addition, allocations for urban development and social welfare have increased by 16% and 4% respectively in 2016-17, over the revised estimates of 2015-16.
3. Subsidy for the power sector is expected to be Rs 1,600 crore, an increase of 11% over the revised estimates of 2015-16. Subsidy on water is expected to be Rs 250 crore.
4. Rs 1,574 crore has been allocated for centrally sponsored schemes in 2016-17. These include allocations for Smart City, AMRUT scheme, and Swachh Bharat Mission, of about Rs 200 crore each.

Other policy highlights from the budget are also given below:

• Citizen Local Area Development: Rs 350 crore has been allocated for Mohalla sabhas for the purpose of local area development.
• Transport: Two elevated BRT corridors will be constructed from Anand Vihar Terminal to Peeragarhi and Wazirabad to Airport. 11 roads will be redesigned on a pilot basis to promote use of public transport, cycling, etc. Cycle tracks will be developed on both sides of the ring road from Vikas Puri to Wazirabad.

Tax Proposals
Value Added Tax (VAT): VAT rate on e-rickshaw, hybrid vehicles, sweets, readymade garments (above Rs 5,000) will be reduced from 12.5% to 5%.
VAT on textiles (except khadi and handloom fabrics), footwear, schoolbags, plastics waste, etc. will be applicable at a uniform rate of 5%.
Luxury Tax: Luxury tax threshold has been increased from Rs 750 to Rs 1,500. Further, self-declaration will be introduced in declaring luxury tax.