Budget focus on inclusive growth

Presenting a budget of `5,587 cr revenue surplus for Madhya Pradesh, State Finance Minister Jayant Malaiya on Wednesday proposed reduction of VAT on 40 items, saying the State was financially healthy and competent to repay loan and interests.

“The State’s revenue expenditure is expected to be `1.08 lakh cr while it will earn a revenue of `1.14 lakh crore, which means a revenue surplus of `5,588 crore in 2015-16,” Malaiya said, presenting his second and the BJP Government’s 12th Budget in the State Assembly.

However, the revenue deficit is expected to be at `16,745 cr, which is 2.99 per cent of the State’s GDP and well under the limits of Madhya Pradesh Rajkoshiya Uttardayitva Evam Budget Prabandhan Adhiniyam, 2005.

The budget specially focuses on ‘Make in Madhya Pradesh’ campaign launched by the State Government for enhancing employment opportunities, skills, infrastructure, human resources and development.

The Government has proposed to reduce value added tax (VAT) on 40 items to 5 per cent in 2015-16 from the present 13 per cent. These include baby diapers, battery operated cars and rickshaws, gas geysers, school bags, calculators, liquid nitrogen, gas stoves, locks and keys, ladies bags, purses and vanity bags, induction stoves and aluminium composite panels.

For enhancing aviation activities in the State, the Government has proposed to reduce VAT from 13 per cent to four per cent on aviation gas. In order to generate more revenue, the Finance Minister has proposed to increase VAT of tobacco-free paan masala from 13 per cent to 27 per cent. The Government has also proposed to increase stamp fee on pistol or revolver licence to `10,000 and on other weapons to `2,000.

For the renewal of revolver or pistol licence, it will be `5,000 and for other weapons `1,000. The State Government has taken loans as per the approved limits and the money received has been spent on the State’s developmental schemes, Malaiya said.

The situation of borrowing is within the financial standards set by the Government and for the repayment of the State’s loan and interest, it is totally competent, he said. Agriculture has been the area of focus for the State Government since the beginning because of which it has got ‘Krishi Karman Award’ for the last three years, the Minister told the Assembly.

Therefore, to give further impetus to the agriculture sector, the Government has made a provision of `5,231 cr in 2015-16, he said.

Similarly, `7,463 cr has been earmarked for irrigation sector, another priority area for the State in 2015-16, which is `1,748 cr more than in last fiscal. For the power sector, the State has made a provision of `9,704 cr during 2015-16, which is ` 1,718 cr more than for FY15, while for the renewable energy sector a separate provision of `54 cr has been made for next fiscal year. 

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