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Maharashtra gets 'people-pleaser' Budget in poll-bound year

Govt presents addl Budget for FY20 with revenue deficit of Rs 20.29K crore

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With state polls three months away, the Maharashtra government presented an additional Budget for the fiscal 2019-20 on Tuesday with a revenue deficit of Rs 20,292.94 crore, up from last year's Rs 14,960.04 crore.

Dubbed the "election special" by opposition parties, the Budget, presented by state finance minister Sudhir Mungantiwar in the state assembly, has made a slew of populist announcements for every section, a move that drove Congress leader Prithviraj Chavan to remark it was more of a "poll manifesto".

The Budget announces hefty provisions for development of agriculture, irrigation and infrastructure, and earmarks funds for the welfare of women, backward classes and tribals.

Incidentally, there were allegations that Budget provisions were "leaked" on Twitter, but Chief Minister Devendra Fadnavis countered them saying the tweets were made 15 minutes into Mungantiwar's speech, and "Opposition parties should understand new technology."

In the Budget, the government has estimated a revenue expenditure of Rs 3.34 lakh crore against revenue receipts of Rs 3.14 lakh crore.

Mungantiwar has set aside Rs 12,597 crore for the troubled irrigation sector, and Rs 350 crore for micro irrigation. He has allotted Rs 35,691 crore for urban development.
A sum of Rs 16,025 crore has been proposed for public works, Rs 12,703 crore for social justice and special assistance, Rs 10,581 crore for public health, Rs 10,705 crore for tribal development and Rs 7,197 crore for housing.

The finance minister said insurance cover with an outlay of Rs 210 crore will be made available to 5.5 crore farmers and their families under the accident insurance scheme 'Gopinath Munde Shetkari Apghat Vima Yojana'. Earlier, the scheme did not cover the entire family.

Former Planning Commission member Dr BL Mungekar told DNA, "This is an election-oriented Budget that every political party resorts to, and the BJP-led state government is no exception."

Mungekar said the Budget seems "scattered" on many accounts and inordinately "ambitious" on others. "For the irrigation sector, for instance, there are seven to eight different heads of expenditure, so one does not get a clear, focussed view of the total expenditure, or the additional irrigation capacity that will be created in the current fiscal."'

"Also, it seems unduly ambitious, particularly on the point of starting 10,000 small-scale industries this year with or without government capital."

In his tax proposals, the finance minister said benefits of amnesty scheme announced in the interim Budget presented in February to liquidate arrears under value added tax and other acts will be extended in first phase up to July 31 and second phase up to August 31 this year.

The arrears from dealers as per statutory orders passed and returns or the revised returns filed on or before August 16 will also be eligible for settlement scheme.

Under the Ease of Doing Business head, all enrolment certificate-holders are allowed to pay professional tax up till the end of the year; the provision of penalty has been done away with. Instead, the government has proposed to levy a fixed interest at 1.25%.

VAT dealers, whose annual turnover is above Rs 1 crore but tax liability in that year does not exceed Rs 25,000, will be exempt from auditing and filing an audit report from 2019-20 onwards.

Break Up

A sum of Rs 16,025 cr has been proposed for public works, Rs 12,703 cr for social justice, Rs 10,581 cr for public health, Rs 10,705 cr for tribal development and Rs 7,197 cr for housing.

Mumbai Special

Memorial for former PM Atal Bihari Vajpayee proposed in city
Rs 150 cr, grant for Sir J J School of Art, Architecture and Applied Arts

Key Allotments

  • Rs 12,597 cr: Irrigation sector
  • Rs 35,691 cr: Urban development 
  • Rs 16,025 cr: Public works
  • Rs 12,703 cr: Social justice, spl aid
  • Rs 10,581 cr: Public health 
  • Rs 10,705 cr: Tribal development 
  • Rs 7,197 cr: Housing 
  • Rs 600 cr: Setting up 4 agri varsities
  • Rs 500 cr: Weaponry, tech to fight Naxals
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