New Delhi: Sparing citizens of any fresh tax except on tobacco products, Delhi government on Monday presented a Rs 23,043 crore budget for the fiscal 2009-10, with maximum allocation for the transport infrastructure ahead of the Commonwealth Games next year.
Cigarette smokers will have to shell out more with the budget proposing a hike in the Value Added Tax (VAT) on tobacco and gutkha from the present 12.5 per cent to 20 per cent.
Presenting the budget for sixth consecutive term, Delhi Finance Minister A K Walia said the government announced a cut in luxury tax on hotels from 12.5 per cent to 10 per cent to boost the tourism sector in view of next year's mega sporting event.
"This is a thanks-giving budget to Delhiites for electing us for the third consecutive term," Walia told reporters after presenting the budget to the assembly.
The state government will spend almost one-third of the planned allocation on improving the city roads and expanding the metro network.
Over Rs 111 crore have been given to the civic body for construction of 17 road under bridges to be completed before October 2010.