Delhi Finance Minister, A.K. Walia unveiled Delhi Budget 2010-11 yesterday that hiked taxes on a host of items. Delhi Budget 2010-11 makes the life in the city more expensive. He justifies the budget with Games projects. With the budget, it is clear that it's payback time.
About the Delhi Budget 2010-11, economictimes.indiatimes.com writes, “The hike that is likely to hurt most is the increase in the value-added tax (VAT) on diesel from 12.5% to 20%, coming on top of the hikes Pranab Mukherjee had imposed in the Union budget less than a month ago. Higher VAT would mean diesel will cost Rs 2.37 more per litre. Given the widespread use of diesel in transporting goods, it is likely to lead to a cascading effect across the board, partly due to its actual impact on transport costs and partly because it also provides traders with a ready excuse for raising prices.
Higher cooking gas prices would also hit home, quite literally. The Rs 40 per cylinder subsidy on LPG which has been continuing from June 2008 has been withdrawn. In absolute terms, the hike in the cost of an LPG cylinder will come to Rs 41.60 because of the incremental increase in local levies.”
With this budget, Delhiites have to pay more for oil, gases, foods and transport costs that are the basic needs for any cities.
Recently, we saw the effect of Union Budget 2010-11 in comparison of union budget 2009-10. Now, Delhi Budget 2010-11 is very opposite in comparison of last year’s "thanksgiving budget".
Mr. Walia defends Delhi Budget 2010-11 with the examples of other states, “States like Madhya Pradesh and Punjab charge a far higher VAT on diesel than we do and we made the best efforts to keep the hike at the minimum possible, which is why we did not touch the VAT on petrol. As for the subsidy, name one state that continued it for so long after the original hike that had necessitated it was withdrawn. We were concerned so we footed the bill, but now we need this money for other welfare projects like widow pension etc.”
So, the government will not responsible for the crisis of common man’s life. Now, it is completely clear that the capitalist system has no way to solve recession and crisis rather than increasing difficulties in the life of common people.
About the Delhi Budget 2010-11, economictimes.indiatimes.com writes, “The hike that is likely to hurt most is the increase in the value-added tax (VAT) on diesel from 12.5% to 20%, coming on top of the hikes Pranab Mukherjee had imposed in the Union budget less than a month ago. Higher VAT would mean diesel will cost Rs 2.37 more per litre. Given the widespread use of diesel in transporting goods, it is likely to lead to a cascading effect across the board, partly due to its actual impact on transport costs and partly because it also provides traders with a ready excuse for raising prices.
Higher cooking gas prices would also hit home, quite literally. The Rs 40 per cylinder subsidy on LPG which has been continuing from June 2008 has been withdrawn. In absolute terms, the hike in the cost of an LPG cylinder will come to Rs 41.60 because of the incremental increase in local levies.”
With this budget, Delhiites have to pay more for oil, gases, foods and transport costs that are the basic needs for any cities.
Recently, we saw the effect of Union Budget 2010-11 in comparison of union budget 2009-10. Now, Delhi Budget 2010-11 is very opposite in comparison of last year’s "thanksgiving budget".
Mr. Walia defends Delhi Budget 2010-11 with the examples of other states, “States like Madhya Pradesh and Punjab charge a far higher VAT on diesel than we do and we made the best efforts to keep the hike at the minimum possible, which is why we did not touch the VAT on petrol. As for the subsidy, name one state that continued it for so long after the original hike that had necessitated it was withdrawn. We were concerned so we footed the bill, but now we need this money for other welfare projects like widow pension etc.”
So, the government will not responsible for the crisis of common man’s life. Now, it is completely clear that the capitalist system has no way to solve recession and crisis rather than increasing difficulties in the life of common people.
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