The Aam Aadmi Party (AAP) government on Wednesday presented a Rs 48,000-crore tax-free budget for Delhi for 2017-18, with focus on improving education, transport, health and water distribution. Last year’s budget outlay was Rs 46,600 crore.

Taxes will be accelerated due to Goods and Services Tax (GST), hence no new levies this year, said Deputy Chief Minister and Finance Manish Sisodia, while presenting the Budget proposals in the Assembly.

Taking cue from the Centre, the AAP government’s third budget has also done away with Plan and non-Plan expenditure heads this year. Delhi’s contribution to the country’s GDP has increased from 3.94 per cent in 2011-12 to 4.08 per cent in 2016-17.

Slamming the Centre’s demonetisation move, Sisodia said, "the decision of note ban seems to be have been taken by spinning the coin. Demonetisation affected the city badly.” Delhi’s growth rate had slowed down due to the note ban, he added. However, he said the ‘outcome budget’ would help streamline expenditure, as there will be quarterly monitoring of outcome.

According to Delhi’s Economic Survey, the national capital’s economic growth is likely to slow down to 8.26 per cent during 2016-17, from 8.82 per cent last year. “This is not just a tax free-budget. We have also reversed the taxes for the third consecutive time,” said Sisodia, who slashed taxes on aviation turbine fuel from 25 per cent to 1 per cent.

The lion’s share of the allocation has been earmarked for education, at Rs 11,300 crore, about 24 per cent of the total Budget, against Rs 10,690 crore last year.

The AAP government, which initiated “Mohalla Clinics’ to pep up public health services, has also set aside Rs 5,736 crore for the health sector.

For the water sector and Yamuna cleaning, Rs 2,100 crore has been allocated, while Rs 3,100 crore has been set aside for urban development.

The power sector has been allocated Rs 2,194 crore, with thrust on solar energy and waste-to-energy plants.

For the Delhi Metro, a sum of Rs 1,156 crore has been allocated for phase four, while Rs 100 crore has been earmarked for developing bus terminals and depots. The government also proposes to buy 582 new coaches for Delhi Metro.

Keeping in mind the upcoming municipal polls, the AAP government has also earmarked a whopping Rs 7,571 crore, about 15 per cent of the total allocation, for civic bodies, which are ruled by the opposition BJP at present.

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