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Mukul presents Rs 3535 crore Plan budget 2012 – 13; ‘beedi’ now taxable

Posted in March 2012

 

Staff Reporter

SHILLONG, March 19: Presenting his third consecutive Budget Meghalaya Chief Minister Dr Mukul Sangma additional in – charge of Finance, Monday presented a Plan Budget Rs 3,535 crore Budget for the year 2012 – 13, with a fiscal deficit of Rs 382 crore.
The fiscal deficit of Rs 382 crore, is around 2.06 percent of Gross State Domestic Product (GSDP), and a reduction of Rs 37 crores from 2011 – 12.
Mentionably, first time he had presented the budget as the Finance minster in Dr DD Lapang’s regime followed by twice as the Chief Minister of Meghalaya.


The budget proposes to increase to rate of VAT on tobacco and tobacco products from existing rate of 12.5 percent to 13.5 percent.
‘Beedi’ has been proposed to be included the tax net by way of amendment of the appropriate Schedule.
Besides, to enhance the excise revenue, increasing the excise slab on IMFL with consequential increase in excise duty on advalorem mode and the VAT component on liquor have been proposed.
Additionally, increase in the rates of license fees for all categories of excise licences has been proposed.
Also, proposal was made to take up the matter of raising the ceiling in the rate of professional tax with the government of India by way of amendment of Article 276 (2) of the Constitution.
Dr Sangma said these measures are expected to generate additional revenue to tune of Rs 12 crores.
According to the CM, the total receipts in 2012-13 is estimated to be Rs 6999 crore excluding borrowings and other liabilities. "Plan grants from the Centre is expected to be Rs 3459 crore while the state's own revenue is estimated to be Rs 1190 crore, an increase of 381 crore and Rs 210 crore respectively from the current year," he said.
He laid an estimated Plan expenditure including centrally sponsored schemes, central sectors schemes, NEC and NLCPR for 2012 – 13 at Rs 4413 crore, an increase of 29 percent over the current year’s expenditure of Rs 3,430 crore.
The government has proposed an outlay of Rs 747 crore from plan expenditure and non-plan expenditure outlay of Rs 506 crore for education department; Rs 744 crore proposed for PWD from plan expenditure and Rs 297 crore from non-plan expenditure; Rs 723 crore for Agri and allied sectors from plan expenditure and Rs 228 crores from non-plan expenditure; plan expenditure outlay of Rs 301 crore for PHE; plan expenditure outlay of Rs 290 crore for power; plan expenditure outlay of Rs 282 crore for C&RD; and plan expenditure outlay of Rs 228 crore for health apart from Rs 170 crore outlay from non-plan expenditure.
The Meghalaya government has pegged the total non-plan expenditure at Rs 3,189 crore for 2012-13, an increase of 12 percent from the budget estimate of 2011- 12, of which Rs 336 crore is estimated for interest payment and Rs 226 crore for payment of pension. The salary payment component is estimated around Rs 1840 crore.
Interestingly, since Meghalaya has declared year 2012 – 13 as the ‘year of the youth’, a provision of Rs 12 crore has especially been earmarked to conduct various programmes for youths.
Talking to the media after the presentation, Dr Sangma said personally he is happy on shaping of the Bugdet. He claims that the narrowing of the deficit in his budget is the collective efforts of all the line departments.


 

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