Sheila's budget has no new tax ahead of polls

CMs largesse doesnt include power, LPG subsidy

No new tax in the Delhi budget. No enhancement of existing taxes. Enhanced pensions and grant-in-aids under social welfare schemes. Is it an election year?

Chief Minister Sheila Dikshit on Wednesday made it very obvious while presenting a Rs 37,450-crore state budget for the financial year 2013-14 in the state Assembly.

While a populist budget was expected from the Congress government in the election year, what surprised one and all was that Dikshit did not even pretend to make it look like a progressive budget, keeping in the mind the future economic compulsions and realities of the city. At the same time, it will be wrong to call it a wholly populist budget. For the simple reason that the chief minister shied away from giving subsidy on electricity and LPG cylinders, something that was expected by many.

“No matter what I say, you people will only say that it is a populist budget with elections in mind. I want to say that this is a budget to run the government and there being elections this year is just a co-incidence,” said Dikshit during a press conference after her budget speech at Delhi secretariat.

When asked the reason for not giving subsidy on electricity, Dikshit said that it will be considered after Delhi Electricity Regulatory Commission (DERC) decides upon its new requirements. Perhaps, power tariff hike in the future can be expected, followed by some subsidy by government.

Lacking vision

Meanwhile, reacting to the proposed budget, Leader of Opposition in Delhi Assembly, V K Malhotra said the budget lacks vision and will not provide relief to any section of people. “Dikshit says that she has not proposed any new tax. I want to ask her if there is any need now when the rates of power, water, stamp duty, circle rates etc has increased by 15-20 per cent in the last 10 years. The need is to slash the prices of essential commodities, provide cheap housing, cleaning Yamuna river and creating jobs, but there is no provision for these things in the budget,” said Malhotra. Aam Aadmi Party spokesman Manish Sisodia called the budget unrealistic.

Praveen Khandelwal, secretary-general of the Confederation of All India Traders (CAIT) termed the budget as a “document of tall claims and vision-less policies”.
Whether this budget will help Congress in the polls, looking for a fourth consecutive term, is too early to predict. However, one thing that is certain is that the party has launched its election campaign. Given the drubbing it received at the hands of BJP in municipal elections, it is never too early for them.

Allocations

* Budget: Rs 37,450 crore         (Rs 33,436 crore last year)
* Pension for senior citizens: Rs 1,500 per month  from Rs 1,000
* Income limit of people eligible for benefit under Delhi Arogya Kosh increased to Rs 3 lakh per annum from Rs 2 lakh
* Financial benefits to transgenders living in Delhi for three years: Rs 1,000 per month