Deficit Budget for M.P.

By Our Staff Correspondent

BHOPAL, FEB. 20. The Madhya Pradesh Finance Minister, Mr. Ajay Narayan Mushran, today presented a Rs. 490.75-crore deficit Budget for the financial year 2001-2002 in the State Assembly.

The Minister told the House that the deficit includes the accumulated deficit of Rs. 115 crores accruing from the previous Budget.

At the outset, the Finance Minister categorically said that the budget was being presented against the backdrop of the bifurcation of Madhya Pradesh and the unprecedented drought condition prevailing in the State.

The Finance Minister presented a demand of Rs. 20011.40 crores from the consolidated fund for expenditure while estimating receipts totalling Rs. 12335.65 crores in the revenue account.To meet the huge deficit the Finance Minister has proposed some new taxes including a hike in lifetime motor vehicles tax from 3 per cent of the price of the vehicle to 5 per cent. It has also been proposed to levy commercial tax of 6 per cent on high speed diesel, light diesel oil and petrol used as raw material by industrial houses especially for their generator sets.

Further it has been proposed to increase the tax on the sale of non-processed grains and pulses from the present 2 per cent to 4 per cent in order to encourage foodgrains processing.

While the profession tax on those earning less than Rs. 80000 per annum remains unaffected, those earning between Rs. 80001 and Rs. 10,00,00 will now pay Rs. 1800 annually as profession tax. Similarly the profession tax would now be Rs. 2100 for those earning between Rs. 10,00,01 and 15,00,00. For those earning above Rs. 15,00,01 the profession tax would be Rs. 2500. Similar tax slabs have also been fixed for the traders.

Cable TV operators too have not been spared. Till now they were paying entertainment tax ranging from Rs. 250 per month to Rs. 1500 per month on the basis of population. It has now been proposed to charge Rs. 10 as entertainment tax for each cable connection.

The Finance Minister came close to admitting flaws in the Government's earlier policy of giving free electricity to farmers to run their 5-horse power irrigation pumps and also to the poor sections for single-point connections when he said that the subsidy had been misutilised. It has now been rationalised to benefit only the deprived and backward sections.

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Section  : Other States
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