Delhi: Deputy Chief Minister and Finance Minister Mr. Manish Sisodia on Wednesday (4 Jan2017) had made the following points on behalf of the Delhi Government in the Pre-Budget Consultation meeting with Finance Ministers of all States under the chairmanship of Union Finance Minister Mr. Arun Jaitley for the union Budget of 2017-18:
# The Deputy Chief Minister suggested withdrawal of service tax @ 15% which is applicable to 40% of the total revenue collected from air conditioned bus service imposed by the Government of India as per Notification dated 29th February 2016. Mr. Sisodia informed that the Government of NCT of Delhi is making all efforts to promote public transport to mitigate the air pollution in the city and to offset the additional liability of service tax imposed by the Government of India, about 6% of the fare of AC Buses needs to be increased which will discourage the common man to use the public transport. He further pointed out that the Central Excise Duty of about 12.625% on fully built C.N.G buses may also be exempted by the Government of India to reduce the cost of public transport.
# The Deputy Chief Minister suggested that the Government of India must compensate the State Governments for their revenue losses due to demonetization. He pointed out that as a result of demonetization the growth of tax revenue under Value Added Tax (VAT) has shown a negative growth in the month of December 2016 as compared to December 2015 and it will not be possible to achieve the target of tax revenue in the current financial year and as a result, all developmental works being implemented by the Government may suffer due to lack of resources.
# The Deputy Chief Minister pointed out that the Government of India is giving only Rs.325 crore as a share of Central Taxes to NCT of Delhi which is stagnant from the last 15 years. Similarly, the Local Bodies are not getting any basic and performance grants as recommended by 14th Central Finance Commission to all Local Bodies of other States. He raised the issue that the Government of India treated Delhi as a Union Territory for payment of the share of Central Taxes and as a State when 100% central funding of Centrally Sponsored Schemes to Union Territory comes into the picture.
He informed that the Sub-Group of Chief Ministers constituted by the Government of India on Recommended by 100% Central Sponsored Schemes Sentry of rationalization measure for funding Union. Territories were scenes of Finance Commission Grant Devolution applicable if this note Union Territories. However, these were the Policy Commission Issued Its office memorandum Month August 2016 A lightly walled wattle bay of State center funded 100% by in All with Legislature and for a source (with legislature) Existing funding pattern will be Followed.