In a budget that intends to appease the farming community and government employees while not imposing fresh tax burden on people with an eye on assembly elections scheduled to take place by this year end, Madhya Pradesh Finance Minister Jayant Malaiya today presented a Rs 2,04,642.44-crore Budget for 2018-19 in the state Assembly, including a lion’s share of Rs 37,498 cr under the Krishi Budget.
“With a revenue surplus of Rs 262.55 crore, the Budget would see the fiscal deficit of Rs 26,780.25 cr, accounting for 3.25 per cent of the Gross State Domestic Product (GSDP),” said Mr Malaiya.
He said that total revenue receipts are estimated to be Rs 1,55,886.47 cr — including Rs 54,655.24 cr from the state’s own tax revenue, Rs 59,489.92 cr from share in central taxes, Rs 10,933.78 cr from the state’s own non-tax revenue and Rs 30,807.53 cr as grants-in-aid from the Centre.
Revenue expenditure is estimated to be Rs 1,55,623.92 cr.
“The provision for Krishi Budget is more by 17 per cent as compared to revised estimates of 2017-18.For the schemes under the Farmers’ Welfare Department, the Budget proposes to allocate Rs 9,278 cr, which is more by 87 per cent than the revised estimates of previous year,” said Mr Malaiya.
“In order to encourage wheat and paddy growers, the Budget proposes to allocate Rs 3,650 cr under the Mukhya Mantri Krishak Samriddhi Yojana wherein nearly 9 lakh peasants would be provided Rs 200 per quintal as incentive. Likewise, an allocation of Rs 2,000 cr and Rs 1,000 cr is proposed for the Prime Minister Crop Insurance Scheme and the Bhavantar Bhugatan Yojana,” he said.
The Budget has made a provision of Rs 18,072 cr for power sector and Rs 10,928 cr for irrigation sector, Rs 1,158 cr for horticulture, Rs 1,627 cr for co-operative, Rs 1,038 cr for animal husbandry and Rs 91,089 cr for pisciulture sectors .
“With a view to help defaulter farmers avail institutional loan facility, the regime is starting the Mukhyamantri Rin Samadhan Yojana with a proposed allocation of Rs 350 cr,” said Mr Malaiya.
Laying emphasis on employee welfare, Mr Malaiya said that the regime has decided to end ‘Karmi’ culture’ and established ‘Adhyapak’ cadre, which has been granted the benefits of the Sixth Pay Commission. These cadre would be brought under the state regime from local bodies and would be made teachers (shikshaks).
He said that monthly honorarium of anganwadi workers and ‘sahayikas’ would be enhanced, government employees would be provided the benefit of the Seventh Pay Commission and remaining recommendations of the State Pay Commission would be implemented.
Laying emphasis on investment and infrastructure, Mr Malaiya said that the Budget has made a provision of Rs 6,208 cr under the Public Works Department and Rs 3,530 cr under the Panchayat and Rural Development Department for roads construction.
“The first phase of Bhopal and Indore metro rail projects is proposed to begin in 2018-19. A provision of Rs 700 cr has been made under the Smart City project. Infrastructure development works to the tune of Rs 1,820 cr are under progress in 22 new industrial areas. These works are likely to be completed by December,” he said.
The Finance Minister said that seven medical colleges are set to open in 2018-19 academic session. These include medical colleges in Ratlam, Vidisha, Shivpuri, Chhindwara, Shahdol, Khandwa and Datia. A provision of Rs 2,016 cr has been made for medical education.
A provision of Rs 6,897 cr has been made for the Home Department, Rs 2,687 cr for the Forest Department, Rs 18,165 cr for the Panchayat and Rural Development Department, Rs 11,932 cr for the Urban Development Department, Rs 8,780 cr for the the Public Works Department and Rs 2,986 for the Public Health Engineering Department.
Likewise, a provision of Rs 21,724 cr has been made for the School Education Department, Rs 6,861 cr for the Tribal Welfare Department, Rs 992 cr for the Backward Classes and Minority Welfare Department, Rs 992 cr Backward Classes and Minority Welfare Department and Rs 5,689 cr for the Public Health and Family Welfare Department.
“Following the implementation of the Goods and Services Tax, 2.66 lakh businessmen – who were registered under the Value Added Tax (VAT) system – migrated into the GST regime. Besides, 1.10 lakh new businessmen were registered under the new tax system thereby enhancing taxpayer registration by 41.24 per cent,” said Mr Malaiya.
He said that the exemption limit for professional tax has been enhanced for annual income of up to Rs 2.25 lakh. A professional tax of Rs 1,500 would be payable for annual income between Rs 2.25-3 lakh and Rs 2,000 for annual income between Rs 3-4 lakh. A professional tax of Rs 2,500 would continue to be payable for annual income of over Rs 4 lakh.
The Finance Minister said that stamp duty for amalgamation and merger has been reduced to 0.8 per cent.
Later, while talking to media, Mr Malaiya said that the dispensation has not suffered loss from transitioning to the GST regime since the Centre has assured 14 per cent increase every year in tax revenue with 2015-16 as the base year.
Shivraj hails MP Budget, Oppn calls it BJP’s “farewell” Budget
Madhya Pradesh Chief Minister Shivraj Singh Chauhan today described the Budget 2018-19 – tabled in the state Assembly – as balanced and dedicated to infrastructure development.
“A provision of 37,498 crore has been made for agriculture and related departments. Focusing on agriculture sector and irrigation projects would increase prosperity.Special attention has been paid on social and health sectors. Roads, power and water-related schemes are also included in the government’s priorities,” said Mr Chouhan while talking to media in the Vidhan Sabha premises.
On the other hand, Leader of the Opposition Ajay Singh described the Budget as the Bharatiya Janata Party’s “farewell” Budget. He said that the Budget indicated that the days of the present regime are numbered.
The regime is taking support of figures of 2003 in order to draw comparison in a bid to conceal its own failures. Public has become aware that the BJP has failed to provide good governance even after 14 years.
“The Finance Minister has presented a Budget of over Rs 2 lakh crore but he has failed to explain to people that the state is reeling under a debt of Rs 1.5 lakh cr. Budgetary provisions are enhanced but not put to proper use. Growth rate has declined from 14 per cent to seven per cent and employment has gone down,” he added.
State Aam Admi Party (AAP) Convener Alok Agrawal said that the Budget has proposed an allocation of Rs 37,498 cr for agriculture and allied sectors. This amount is 18.32 per cent of the total Budget while the fact is that 73 per cent population is dependent on agriculture.
He said that a provision of Rs 350 cr has been made aiding peasants in repaying short-term debt though farmers are burdened by Rs 88,000 cr debt. He said that the dispensation has failed to pay attention basic facilities in the last Budget. It has no blueprint for immediate relief or solid schemes for farmers, women and unemployed youths.