The Centre has released Rs1157.94 crore for the financial year 2015-16 for Chhattisgarh as first Installment of ‘Devolution’ as per 14th Finance Commission recommendations. The Central Government has released more than Rs37,420 crore to all the States for financial year 2015-16 as the first installment of devolution. It may be recalled that Chhattisgarh Chief Minister Raman Singh on March 13 had presented a bold and impressive Rs65,013 crore Budget for the fiscal 2015-16 and kept youth, industry and infrastructure in his centre stage.
Singh announced a series of trade and business-friendly tax incentives in VAT, Central Sales Tax and Entry Tax, to make domestic trade and industry more competitive. But he reaffirmed his commitment to the poor, farmers and the deprived sections of society by introducing many pro-poor schemes. A major highlight of the Budget is the introduction of a separate ‘Youth Budget’, which brings into sharp focus the public investment in schemes that directly relate to the youths which make up about 90 lakh out of state’s 2.55 crore population.
As much as Rs6,151 crore have been allocated for youth with a basic intent to skill development under the Chhattisgarh Right of Youth to Skill Development Act, 2013. The focus on infrastructure is another highlight of the Budget, with an outlay of over Rs11,000 crore, making an increase of over 39 percent over last year. The allocation for the road sector alone is Rs5,183 crore, an increase of 43 percent over last year
In other bold decisions which are targeted to build up infrastructure, Chhattisgarh plans to upgrade all State highways and roads connecting district and block headquarters to double-lane roads. In addition, 2,000 km of existing roads will be upgraded in the PPP mode, with an estimated investment of Rs10,000 crore. Besides, Rs700 crore have been allocated for rural connectivity, for roads not covered under Prime Minister’s Rural Roads Scheme.
The State will also develop a 300-kilometre Rail Corridor through a joint-venture with SECl and IRCON, with an estimated investment of Rs5,000 crore. The budget also provides for developing the Swami Vivekanand Airport at Raipur in line with international norms. Bold tax reforms have been proposed to further enhance the “ease of doing business” in Chhattisgarh. Traders having an annual turnover of up to Rs1 crore have been exempted outright from filing quarterly returns.
E-payment of taxes has been made compulsory for all tax-payers. VAT on re-rolled products has been reduced to 4 percent. All industrial inputs, including lubricants, light diesel oil, and electrical panels, have been brought in the 5 percent VAT slab. In a major relief to the micro, small and medium enterprises sector, Entry Tax exemption has been extended to investments in plant and machinery up to Rs5 crores as against the existing exemption limit of just Rs1 crore.
To give a fillip to the Clean India initiative of the Prime Minister, Raman Singh announced exemption of VAT and Entry Tax on bio-toilets. In order to incentivise fast-track construction of affordable housing, precast and monolithic concrete products have been made tax-free. VAT on aviation turbine fuel has been reduced to 4 percent.
As the acclaimed pioneer of food security, Singh has made a massive allocation of about Rs5,000 crore for the State’s food security initiatives, which cover about 85 percent population. In the health sector, a special nutrition supplement scheme for TB patients, the first of its kind in the country, and distribution of free insulin for diabetic children are fresh initiatives. Reaffirming his commitment to the poor, Singh announced 20 percent hike in the Social Security Pension for about 16 lakh pensioners.
In spite of huge allocation towards pro-poor initiatives, there has been a substantial increase of 39 percent in capital expenditure. Plan expenditure accounts for 61 percent of the total budget out of which 36 percent has been allocated for Tribal Sub-Plan. Fiscal deficit has been contained within prescribed ceiling of 3 percent of GSDP. Thus the budget combines bold and creative prioritisation with fiscal prudence.