The Madhya Pradesh Government on Tuesday proposed no new taxes in the Rs1.17 lakh cr budget for 2014-15, that projects a fiscal deficit of Rs13,425 cr.
Presenting the Budget in the State Assembly here, Finance Minister Jayant Malaiya said that 34 implements used in agriculture have been exempted from tax. Besides, butter, flush doors, ceramic and vitrified tiles have been made cheaper, he said.“The fiscal deficit was at 2.98 per cent of the Gross Domestic Product (GDP) and it was well within the prescribed limits,” he said. The Minister also proposed to end taxes imposed on transportation of tendu leaves and pointed out that this would cause a revenue loss of Rs three crore.
He said that for rationalisation of VAT, its rate has been reduced from 13 per cent to 5 per cent. This would apply to many things, including thermal insulators used for industrial input, computer scanners and X-ray films, he said.The budget of Rs1,17,040.99 crore, with an estimated closing balance of Rs76.89 crore, emphasises on agriculture, education, health and investment sectors.
While presenting his maiden Annual Financial Statement, the Minister said, "Total revenue receipts during the fiscal are expected to be Rs1,03,493.16 crore, of which Rs39,989.88 crore will come from state taxes.""Revenue expenditure shall be Rs99,013.81 crore. This will enable the regime to achieve revenue surplus of Rs4,479.35 crore. Fiscal deficit is estimated to be Rs13,425.48 crore," he said.
The Minister said the Centre made efforts to implement Goods and Services Tax from time to time and was apprised over apprehensions on its enforcement in the present format. He expressed satisfaction that the Centre has taken an initiative to consult all state governments and evolve a consensus on the issue.