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| It will be Rather versus resources in LA today | | | Early Times Report
Jammu, Mar 11: It is going to be Rather versus resources in the state Legislature on Friday when the Finance Minister, Abdul Rahim Rather, presents the annual budget proposals for the 2010-2011 in the House. Since the state Government expects the centre to revive the power reforms grant by releasing about Rs. 1300 crores a year and extend the Prime Minister's Reconstruction Programme A.R. Rather may go in for a dose of mild taxes.
The National Conference led Government has, during the last one year, been able to reduce the overdraft with the Jammu and Kashmir Bank by Rs. 1000 crores indicating the resource mobilisation will be the main focus in the budget proposals. Political leaders and people have started evincing keen interest in the budget proposals that Rather will present in the Assembly on Friday. Already hike in petrol and diesel by the centre and inability of the Government to bring down prices of essential commodities seem to have already pinched peoples' pockets.
As such people in Jammu and Kashmir are not ready to bear the burden of additional taxes. But the resource crunch may force Rather to levy fresh taxes on some commodities and services. The state has already imposed a Re. one cess on petrol making the cost of petrol dearer than in other states in the north. As such the Finance Minister may not hike the cess on petrol. He may increase excise on IMFL which may fetch around Rs. 10 to Rs. 15 crores a year.
Indications are that slight increase may be proposed on toll tax and sales tax. No doubt the Finance Minister will lay emphasis on the recovery of power tariff arrears he may not hesitate hiking power tariff by three to five per cent in case the centre did not agree to revive releasing power reforms grant.
The sectors of social services, agriculture, education and health may get major share from the annual budget proposals. It is to be seen whether the Finance Minister is able to present a zero deficit budget or leave the budget deficit unplugged. Official sources said that in the existing circumstances the possibility of presenting a zero budget was remote. Rather may draw cheers if the deficit gap is very minimal which can be plugged through additional resources mobilisation measures.
The opposition members were getting ready for opposing any plan to levy fresh taxes. Members belonging to the PDP, the BJP and the Panthers Party will try to force the Finance Minister to drop any plan of imposing a heavy dose of new taxes.
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