Sheila’s ’diet’ Budget!

The Delhi CM, who also holds the Finance portfolio, has hiked VAT on 'namkeen' and sweetmeats, citing health problems faced by residents

Sheila's 'diet' Budget!

The Delhi CM, who also holds the Finance portfolio, has hiked VAT on 'namkeen' and sweetmeats, citing health problems faced by residents0

With an eye on Delhiites' health, Sheila Dikshit, Chief Minister and Finance Minister, raised Value Added Tax (VAT) on sweetmeats and 'namkeen' to 12.5 per cent from the existing five per cent, while presenting the Rs 27,067-Crore Delhi Budget 2011-12.

"It has not been done to collect money. A large number of the city's population is in the grip of lifestyle diseases. It is for the good health of the people," she said defending her move. Eight to ten per cent of the population in the city is riddled with diabetes and hypertension problems.

Reacting to the development, Dr Ashok Kumar Jhingan, Chairman, Delhi Diabetic Research Centre, said: "It is a wonderful step. There is no second opinion about it. Some of the countries have already followed such measures. With the increased VAT, the number of people suffering from lifestyle diseases will come down. This will ultimately reduce the number of diabetes patients and those suffering from obesity."

The Chief Minister announced a total of 14,000 new staff in schools and enhanced scholarships for students. A total of 27 lakh school-going children would be covered under 'Universal Free Health Scheme' for which a corpus of Rs 100 crore has been set up. Diesel cars in Delhi are set to cost more. The budget proposes an additional tax of 25 per cent on diesel-propelled vehicles.

Value Added Tax at 12.5 per cent has been imposed on unmanufactured tobacco and bidis.u00a0But Sheila failed to win over the opposition. "The budget is disappointing, anti-development and will lead to increasing inflation," said VK Malhotra, leader of the opposition in Delhi Assembly.

Money well spent
*u00a0Delhi legislators will get an additional Rs 50 lakh under the MLA Local Area Development Fund as the city government on Tuesday raised it to Rs 2.5 crore.
* A new insurance scheme called 'Apka Swasthya Yojna' will provide an annual insurance cover of Rs 1.5 lakh for various critical diseases to the poor.
* Dikshit also set aside Rs 405 crore for construction of houses for economically weaker sections while earmarking Rs 180 crore for improving civic amenities in slum clusters. Construction of 27,700 EWS houses will be started during 2011-12.
*u00a0Delhi Metro Phase-III, which envisages adding another 103 km to the network, will begin this fiscal with proposed outlay of Rs 1071 crore.
*u00a0Chief Minister announced free sanitary napkins to girls of class six to 12th standard in all government and government aided schools to ensure that they attend classes during menstruation period.

Ready or not?
Sheila Dikshit has been Chief Minister for the past twelve years. However, she presented the budget for the first time as the Finance portfolio has come to her only recently. When asked how she prepared the budget, she quipped: "It has been prepared by the government. I have just read it." When reporters asked her how she rated the budget as a common householder, Sheila said: "Kuchh samajh nahi aaya (I didn't understand anything)."