Petrol will cost Rs 1.26 less in the capital with the Delhi Government slashing 20 per cent value-added tax (VAT) on the hiked component in its Budget on Monday. The Congress Government’s Budget also provided a huge push to social sector spending in an apparent bid to win over sections disgruntled with the party as it prepares for next year’s Assembly polls.

However, the slash in petrol prices may not give the much-needed relief to common man as Delhi Government proposed a fresh 5 per cent VAT on CNG, which is used by a number of people in the city for running their vehicles.

Petrol will now cost Rs 71.92 after the cut. After the increase last week, Delhiites used to pay Rs 73.18.

The CNG price will see an increase from Rs 35.45 per kg following the 5 per cent hike in VAT.

“The price of petrol in Delhi is the lowest among all the metro cities and lower compared to the price in neighbouring cities of Haryana, Uttar Pradesh also. I have deeply considered the matter and of the view that the citizens of Delhi need to be provided some relief….Honourable members will recall earlier too we have given relief to the people when there was an increase in the price of diesel by exempting vat on the increased component.

Similarly, I propose to exempt the recently announced increase in the price of petrol from the levy of 20 per cent of VAT,” the Chief Minister, Ms Sheila Dikshit, said presenting the Budget for 2012-13.

Social sector gets most

The social sector has the highest allocation in the Rs 33,436-crore Budget, the second since Ms Dikshit has been handling the finance portfolio. Tax collection was pegged at Rs 26,150 crore.

The Plan allocation is Rs 15,000 crore and the non-Plan allocation pegged at Rs 18,268 crore.

The Budget has a heavy dose of populist measures and is being seen as a bid to regain the Congress’ support base for the Assembly elections in the wake of the party’s crushing defeat in the Municipal polls

The previous Budget’s size was Rs 27,067 crore with a Plan outlay of Rs 13,600 crore and a non-Plan expenditure of Rs 13,307 crore.

This year’s Budget presentation was delayed due to coming into force of election code of conduct for municipal polls.

The education sector has been allocated Rs 1,901 crore and water and sanitation sector Rs 1,800 crore.

Another Rs 631 crore has been earmarked for development activities in unauthorised colonies. “If required, the amount will be suitably enhanced for development work in unauthorised colonies. It will no suffer due to lack of funds or want of funds,” Ms Dikshit said.

Housing certificates

The Delhi Government issued provisional regularisation certificates to over 1,200 unauthorised colonies ahead of Assembly polls in 2008. The then Dikshit Government, while distributing the certificates, had promised to regularise the colonies if Congress came to power for third term.

Ms Dikshit said “We will continue to look more intensely at the education, health and financial needs of the weaker sections….We would like to see Delhi developing into a good city to live in and a city that caters to the needs of all sections of the society.”

In a bid to make Delhi the “first kerosene free State” in the country, she said her Government plans to provide a one-time cash subsidy of Rs 2,000 to about 1.75 lakh households for obtaining an LPG connection and purchase of a gas stove.

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