The Delhi government on Monday presented a ?thanks-giving? Budget focussing on transport and Commonwealth Games projects. Though there was no increase in other taxes, the cigarette smokers will have to shell out more money with the Budget for 2009-10 increasing the Value Added Tax (VAT) for tobacco products from the present 12.5% to 20%.
Presenting the Budget, Delhi finance minister AK Walia said the government was slashing the luxury tax on hotels from 12.5% to 10% in the wake of Commonwealth Games.
Hotel chains across the city, which have been reeling under the impact of the global economic crisis cheered the move. ?We welcome the decision as it will help rationalise the tax structure,? said Anjali M Chatterjee, general manager, marketing communications, The Lalit.
Cut in luxury tax has been one of the long standing demands of the hospitality industry, which has seen a severe dip in foreign tourist arrivals post the terror attacks in Mumbai and also due to the financial downturn. ?This move will surely help take away some pressure off the expenses and help improve bottom-lines to some extent,? said Peter Leitgeb, president & CEO, The Claridges Hotels & Resorts.
?This is a thanks-giving budget to Delhiites for electing us for the third term,? Walia told media persons after the Budget presentation at the Assembly.
The highest allocation in the Budget was for transport sector which was given Rs 3,069 crore followed by Urban Development with Rs 1,524 crore and Water and Sanitation with Rs 1,366 crore, respectively.
The allocation for Commonwealth Games projects got a steep hike of Rs 1,016 crore to touch Rs 2,105 crore. Of this, Rs 1,000 crore will come from the Centre as an additional central assistance .
The money would be spent for targeted implementation of all projects related to the 2010 Commonwealth Games, he said. These projects include construction of Tyagaraja Sports Complex, renovation and expansion of Chhatrasal, Talkatora and Shivaji Stadia and construction of a Training Indoor Stadium at Ludlo Castle .
The government will also construct eight flyovers and 23 road over-bridges or road under-bridges before the Commonwealth Games. New parking sites will be constructed while street lighting will get a makeover, Walia said.
The Education and Health sectors were allocated Rs 1,032 crore and and Rs 1,019 crore respectively. Energy sector will get Rs 461 crore, which is a drop of about 55%, and Social Welfare sector Rs 334 crore.
Total receipts as per budget estimates 2009-10 stood at Rs 23353 crore as against the expenditure of Rs 23043 crore having a surplus of Rs 310 crore Of the total revenue receipts of the state government amounting to Rs 16156 crore, Rs 10,000 crore are estimated to come from VAT followed by non-tax revenue of Rs 2,570 crore.