“The annual contribution will come at Rs 20 crore each from budgetary allocation, a cess on local taxes collected by the urban local bodies and a cess on Motor Vehicle Tax,” Chief Minister Yeddyurappa said in his budget speech.
Directorate of Urban Land Transport (DULT) Commissioner Manjula told Deccan Herald that the Fund helps in encouraging walkers and cyclists, capacity building for people involved in urban transport and in meeting expenses for consultant studies on transport. The objective of the fund is to wean people away from conventional modes of commuting and reduce dependence on private vehicles.
Yeddyurappa said the MV tax collection was expected to reach 2,400 crore during the current financial year against the target of of Rs 2,032 crore. He has set a target of Rs 2,800 crore for the coming fiscal.
Transport Commissioner Bhaskar Rao told Deccan Herald that the department had surpassed targets for three consecutive years. The outlay for the transport sector in the budget has more or less remained unchanged.
Published 24 February 2011, 17:44 IST