Tax payer not burdened for CWG expenditure

NEW DELHI: Faced with criticism over the recent hike in taxes, the Delhi government today said the huge expenses incurred over preparations for the Commonwealth Games are not being met out of the tax payers' money.

"Let me assure you we don't charge anything extra for Games preparation. We will meet the expenditure by increasing efficiency in tax collection. Also the Centre is contributing to the fund," Chief Minister Sheila Dikshit said at the HT conclave here on 'How the Games will create commonwealth for Delhi'.

Recently, the government had hiked VAT on diesel from 12.5 to 20 per cent, besides increasing the registration fee for properties, road tax for luxury cars and circle rates for properties.

Dikshit said the Games provided an opportunity for converting Delhi into a world-class city and that the huge investment was being made taking into consideration long-term infrastructural needs of the national capital.

"What we have done is preponement of the investment and used the funds immediately rather than five to six years later. But I can assure you that none of the funds meant for social sector is going to be diverted for Games purpose," she said.

Union Urban Development Minister S Jaipal Reddy who also spoke at the conclave said the total estimated cost to be incurred by the ministry over the Games preparation works out to be at around Rs 18,000 crore.

"But we have to keep in mind that except for the money spent on organising committees, the remaining amount will be utilised for the city's development. For instance, Metro cannot run with mere operational revenue. Likewise, schemes under JNURM were sanctioned under which the city got 1600 low-floor buses," he said.