The government announced slashing of VAT on Air Turbine Fuel (ATF) from existing 25 per cent to one per cent for direct flights between Delhi and remote areas identified under the Centre's Regional Connectivity Scheme (RCS).
Cost of sanitary napkins, plywood, black boards, particle boards and granite are also set to come down as VAT on them has been reduced from 12.5 per cent to 5 per cent. Sanitary napkins costing up to Rs 20 will be tax free.
Sisodia said note ban has hit the national capital's economic growth and "forced" the city government to reduce spending on various developmental projects by about Rs 4,100 crore.
In its third Budget, the Kejriwal government abolished the plan and non-plan expenditure heads and presented it in terms of revenue and capital classification in line with the Centre's decision.
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Sisodia said this was the first "outcome budget" of Delhi and that there will be quarterly monitoring of the outcome to ensure performance.
The total financial support to local bodies in 2017-18 has been proposed at Rs 7,571 crore which is 14.9 per cent higher than the funds given in the Revised Estimates of 2016-17.
He said the Gross State Domestic Product of Delhi at current prices is likely to increase to Rs 6.22 lakh crore in 2016-17 from Rs 5.51 lakh crore in 2015-16, indicating a growth of 12.76 per cent.
"Due to demonetisation there is a negative trend seen in the economic scenario during the last four months. I have seen the commodity-wise data which reflects economic scarcity in most of the markets due to demonetisation. I think the long term effect of this will also be seen in the next fiscal,"said Sisodia.
He said the government is also working on schemes of issuing Health Card and to provide health insurance to all citizens of Delhi.
Listing a number of initiatives for education sector,
Sisodia said 24 new schools will start functioning this year while 10,000 new class rooms will be constructed in the next financial year. Construction of 8,000 new class rooms is almost complete.
On the transport sector, he said it is a priority area and government was working hard to provide last mile connectivity to commuters, besides significantly enhancing transport infrastructure. The Government has already approved Metro phase-IV comprising six corridors with the length of 104 KM.
The Deputy Chief Minister said Government has set a target of laying water pipeline in whole of Delhi including unauthorised colonies and JJ clusters during 2017-18.
The total budget of Rs 48,000 crore is 16.5 per cent higher than the Revised Estimates of Rs 41,200 crore in the current financial year.
Out of Rs 48,000 crore, Rs 29,500 crore has been set aside towards establishment expenses, while Rs 18,500 crore is earmarked for implementation of various schemes, programmes and capital projects.
The total tax collection has been pegged at Rs 38,700 crore while non-tax revenue is estimated at Rs 800 crore, capital receipts at Rs 400 crore.
While no new tax was imposed or the rate of any existing ones enhanced, tax was reduced on a few items, including sanitary napkins, laminates, plywood, black boards and stones such as granite, swadeshi kota, dholpur and others to bring the rate at part with marble.
Low tax collection has remained a concern area for the government as it has failed to achieve the targeted VAT collection Rs 24,000 crore for the current financial year.
"GST has been approved. With its implementation from July 1, 2017 we expect a positive impact on tax revenue collection of the government. The projected tax revenue collection is based on the belief that there will be tax buoyancy on implementation of GST," said Sisodia.