The Delhi government’s Budget for 2011-12 today appeared more people-friendly, as it tried to be both health conscious and friendly towards the aam aadmi.
Expressing concern over the growing incidence of lifestyle diseases among Delhi’s citizens such as diabetes and hypertension, the government proposed to increase value added tax (VAT) on sweetmeats and namkeen to 12.5 per cent, from the existing 5 per cent in the Budget tabled in the Assembly.
“Diabetes and hypertension have become the unfortunate by-products of our city life and unhealthy eating habits, even among our children and needs to be addressed,” Chief Minister Sheila Dikshit said while presenting her first-ever Budget.
Trying to provide encouragement and protection to bicycling since it’s a healthy and non-polluting mode of transportation, the chief minister proposed to remove VAT on cycles up to Rs 3,500. “Bicycles are the most preferred mode of transportation of the aam aadmi and the government is trying to give relief to this section of people,” added Dikshit.
The chief minister presented a Budget of Rs 27,067 crore with a plan outlay of Rs 13,600 crore and a non-plan expenditure of Rs 13,307 crore. “Out of Rs 27,067 crore, the government proposes to fund Rs 20,246 crore from tax collections, of which Rs 14,500 crore would be garnered through VAT,” she said.
The city government also proposed to exempt VAT on kerosene stoves, lanterns, petromax lamps and their spare parts and sanitary napkins which will now become cheaper.
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On the other hand, bidis, furnishings and suitings would become costlier as the government has proposed to tax these at five per cent. It has also announced that a VAT of 12.5 per cent will be imposed on unmanufactured tobacco, which will make bidis and hookah more expensive.
The government will also form a corpus of Rs 100 crore under the Chacha Nehru Sehat Yojana, in which a total of 2.7 million schoolchildren will be covered under a universal free health scheme for children up to 14 years.
“After the Right to Education, it is the biggest possible leap for the adoption of the right to health,” added Dikshit.