The state government's annual budget for the year 2010-11, presented in the assembly here on Thursday, failed to live up to the expectations of the common man. Neither did it contain any tax cuts to give some relief to the common man, hit hard by the runaway price rise, nor include any major social welfare scheme.
Vaju Vala, the longest serving finance minister of the state, admitted as much when he told mediapersons, during his post-budget interaction, that he had not kept inflation in mind while preparing the budget.
During the Golden Jubilee year of the state, Vala presented a Rs558.44 crore deficit budget for the state. He has proposed to raise over Rs730 crore by tweaking VAT and Motor Vehicle tax rates and imposing 15% new tax on sale of second hand vehicles.
Hitherto, the state government used to give full tax credit, equalling the VAT paid, to manufacturers selling their products outside the state. But the government has now proposed to give tax credit lower by 2%.
Moreover, a lumpsum tax on goods vehicle, maxicab and other kinds of vehicles has been levied, which will indirectly affect the common man's pocket.
However, Vala said that if the Union government gave Gujarat the central sales tax dues of Rs600 crore, then the state government would not effect the 2% cut in VAT credit.
The finance minister has increased the total budget size by 19.67% to Rs69,565 crore from the last year's Rs58,310 crore. Total receipts during 2010-11 have been projected to increase to Rs68,148 crore from Rs57,487 crore in 2009-10, a rise of 18.54%. The development expenditure has been increased by 14.11% to Rs45,860 crore from Rs40,170 crore in 2009-10.
Non-development expenditure has been estimated to be Rs22,707 crore.
The total plan outlay has been increased by 25.53% to Rs29,500 crore for 2010-11 from Rs23,500 crore in 2009-10. Compared to the revised revenue deficit of Rs4,356.50 crore for FY10, the deficit for the next financial year has been projected at Rs4,502 crore. After adjusting the revenue and capital account the state government has projected a deficit of Rs558.44 crore.
Unlike last year, when many big schemes, like Chief Minister's Urban Development Scheme, had been announced, perhaps due to the impending Lok Sabha election, there are no big such schemes this time. However, a budget allocation of Rs4,200 crore has been made for water infrastructure under the name of 'Swarnim Gujarat Saurashtra Kutch Water Grid'' scheme. Besides, Rs24 crore has been allocated for 'Swarnim Gujarat Gramya Kaushalayavardhan Yojna' and Rs100 crore for the climate change department, which was formed last year.
The government has also announced the setting up of new 700 courts for speedy disposal of cases. A sum of Rs563 crore has been allocated for road linkages to special economic zones (SEZs) and special investment regions (SIRs).
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