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| Amid PDP boycott Rather presents fifth budget of coalition Govt | | Tax concessions continue, sops for PRIs, newspapers | | VAT on cigarettes hiked, ban on Gutka
ET Plus Report
Jammu, March 6: Amid boycott of main opposition PDP, Finance Minister of NC led coalition Government in J&K Abdul Rahim Rather presented his fifth budget in the State Assembly for the year 2013-14. Based on the projected annual plan outlay of Rs 8000 cr, Finance Minister presented the zero deficit budget with expenditure and Receipts (income) estimated at Rs 38068 cr. With continuance of tax relief and concessions to various sectors, a sizable amount has been earmarked by the Finance Minister for welfare initiatives as well as Panchayati Raj Institutions . Barring cigarettes and marginal hike in toll rate, no fresh taxes have been proposed in the budget presented today.
"It is a balanced budget in which we have tried to take care of all the communities…….there is no burden on any sector instead we have extended concessions of taxes to certain sectors and areas which were enjoying it for the last one year", Rather said while speaking to media after presentation of budget in the House. Buoyed with the increase registered in tax revenue, the Finance Minister claimed that from Rs 4,700 cr in 2011-12 it has increased to Rs 5,900 cr , registering nearly 26% increase , the Government has anticipated further rise for next year Rs 6,700 cr. "It reflects efficiency and improvement in the tax collection management", Rather said. The Finance Minister said even as the expenditures are on increase on all fronts, it would be the endeavour of the Government to increase the income from all sources available. Upbeat on the growth rate at a little over 7 % which is far higher than national growth rate, Rather said attempts are afoot to reduce the fiscal deficit by the targets envisaged by 13th Finance Commission . "We are bound to take measures in this direction or else grants would be withheld", he maintained.
The total budgetary estimates have been kept at Rs 38,068 crore (total receipts), out of this an amount of Rs 33,970 crore is revenue receipts and Rs 4,098 crore as capital receipts, the Finance Minister explained . Out of the total expenditure, also estimated at Rs 38,068 crore, the revenue expenditure will be Rs 28,690 crore both on account of plan and non-plan, Rather said adding the total capital expenditure is estimated at Rs 9,378 crore both on account of plan and non-plan. He said Non Plan Revenue Expenditure (NPRE) consumes a major portion of the amount with Rs 27,096 crore of which Rs 17,002 crore are spent on salaries and pension. While a provision of Rs 842 cr has been kept to disburse third installment of pay and pension arrears, Rs 700 cr have been earmarked for DA to employees in the budget.
However, one of the major steps taken by Government in terms of some relief to the Panchayati Raj institutions is provision of Rs 231. "I have proposed to pay renumeration of Rs 2,000 per month to all the Sarpanches, Finance Minister Abdul Rahim Rather said in his speech in the House. While Panches will be paid a fee of Rs 300 per sitting subject to a monthly ceiling of Rs 600, sarpanches would get a remuneration of Rs 2000 per month. "The question of appropriate renumeration for Sarpanches and Panches have been engaging the attention of the Government", Rather said, adding, "we have collected the relevant information in this behalf from other States in the country where the Panchayat Raj System has been practiced."
"State Government has totally banned Gutka - if any one found keeping it he would be punished," Rather said.
For additional resources mobilisation, Rather, who presented 13th budget of his career, said services provided by authorised automobile service stations, property dealers and consultants other than those already included in a service covered by J&K GST Act will be brought under service tax net.
Besides, toll rate will be increased by 5 paisa per kilogrammes in the existing rate of Additional Toll and Toll rate on import of table birds to increase from Rs 6.00 per kg to Rs 8 per kg besides VAT on cigarettes to increase from 30 to 40 per cent.
As for the budget proposals , it shows a slew of welfare measures ranging from hike in rates of daily wagers from Rs 125 to Rs 150, mediclaim insurance for migrants , employment related initiatives, provision of help for BPL orphan girls for their marriage , provision for participation in insurance cover for journalists and few more measures. However, significant aspect of the budget lies on the fact that Government has chosen continuance of tax concessions on as many areas from essential commodities to extending concessions already being enjoyed by industries, exemption to tourism sector . One of the vital decisions in this segment is that rates for the Government advertisements would be increased by 50%.
In what can be seen as harshest measure in the budget , use of Gutka and pan masala has been completely banned in the State. "The use of products containing chewable tobacco is much more dangerous. Many deaths in very miserable circumstances are caused every year due to consumption of these products," Finance Minister while justifying the step. Announcing a VAT on cigarettes , he said this has been increased from 30% to 40%. For additional resources mobilisation, Rather, who presented 13th budget of his career, said services provided by authorised automobile service stations, property dealers and consultants other than those already included in a service covered by J&K GST Act will be brought under service tax net. Besides, toll rate will be increased by 5 paisa per kilogrammes in the existing rate of Additional Toll and Toll rate on import of table birds to increase from Rs 6.00 per kg to Rs 8 per kg. |
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