Undeterred by the massive Rs 3.04 crore debt and over Rs 24,000 annual debt servicing burden, the Fadnavis government made a slew of announcements in its maiden budget, including the abolition of the much-reviled Local Body Tax (LBT) from August 1, 2015. Presenting the budget, Finance minister Mungantiwar said the budget would not be expenditure-based but outcome-based.
Undeterred by the massive Rs 3.04 crore debt and over Rs 24,000 annual debt servicing burden, the Fadnavis government made a slew of announcements in its maiden budget, including the abolition of the much-reviled Local Body Tax (LBT) from August 1, 2015. Presenting the budget, Finance minister Mungantiwar said the budget would not be expenditure-based but outcome-based.
Do the budget figures augur well for state?
The state, whose growth is forecast at a slower 5.7% during 2014-15 – compared to 7.3% in 2013-14 and 7.8% in 2012-14, is expected to have a revenue deficit of Rs 3,757.40 crore as against the current year's Rs 13,883.41 crore. Revenue receipts are expected at Rs 1,98,230.50 crore versus revenue expenditure of Rs 2,01,987.90 crore. The size of the annual plan is estimated at Rs 54,999 crore.
What are the thrust areas in the budget?
The budget has given priority to agricultural regeneration, water conservation, metro railway projects in Mumbai, Pune and Nagpur, development of smart cities, developing pilgrimage centres and tourism circuits like those centred around forts, coasts and nature.
What all can the common man expect?
The government has announced better rural roads, housing for all by 2022, establishment of six medical colleges (which may be developed on PPP basis like in Madhya Pradesh), renovation of bus depots, and boosting the 'Make in Maharashtra' programme for manufacturing growth. Some of these new schemes will be named after BJP and Jan Sangh ideologues and leaders.
Has it got any plans to plug leakages?
The state's projects will be monitored through evidence based photography through a separate control room at mantralaya. To generate revenue without burdening tax payers, the state will also tap unconventional revenue sources like charging a premium fee linked to the market value of land for change in purpose of the land use and additional FSI. The government will consider allowing additional FSI with premium in civic limits. It has also proposed an increase in the FSI limit from 0.33 to 0.60 and increase the premium rate in BMC limits.
What do the tax proposals contain?
Tax on wood free plain and pre-laminated particle boards, long steel has been hiked, while tax holidays on essentials, raisins, have been extended. Medicines for treatment of cancer, guide-wire used in treating cardiac patients, LED bulbs, cashew shells will become cheaper. The salary limit for professional tax levy has been increased to Rs 10,000 for women.
What are the tax reforms proposed?
The government will also focus on automation in the sales tax department and do away with ambiguity in tax rates on commodities and ensure certainity in taxation on commodities like workbooks, drawing and laboratory books, white butter, paper, spices, embroidery threads. The Centre's plans for a unified Goods and Services Tax (GST) from April 1, 2016, will ensure simplicity of tax compliance and boost manufacturing. The 14th finance commission's recommendations will also hike Maharashtra's share in central taxes from 5.199% to 5.521%.
How does the government plan to boost direct benefit transfer?
The state will also focus on direct benefit transfer through Jan Dhan Yojana, Aadhaar cards and mobile numbers or JAM to plug leakages and ensure transparency.
What are the government's stated priorities?
"Priorities have been ascertained to stabilize and to make sustainable the dry land agriculture, rapid growth of basic infrastructure, to successfully face the challege of growing urbanisation and more important to increase the job opportunities for the youth of our state," said Mungantiwar.
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