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M.P. Budget focuses on roads, power

By Our Staff Correspondent

BHOPAL, FEB. 18. The Madhya Pradesh Finance Minister, Raghavji, today presented in the Assembly a Budget with a net deficit of Rs. 214.03 crores at the end of the financial year 2005-06.

In his Budget speech, the Finance Minister projected a transaction deficit of Rs. 18.28 crores for the year 2005-06. However briefing newspersons after presenting the Budget, he conceded that the net transaction deficit at the end of the financial year 2005-06 would go up to Rs. 214.03 crores since the opening balance at the beginning of the financial year 2005-06 is estimated to be Rs. (-) 195.75 crores. This gap would be financed through additional resource mobilisation and economy measures, he said, adding that due to good fiscal management, the State Government did not go for over-draft even for a single day during the last one year period.

Mr. Raghavji said in his Budget speech that the estimated revenue receipts for the year 2005-06 are Rs. 19,848.27 crores. He said that in the absence of an official communication regarding the Twelfth Finance

Commission devolutions, the share in Central taxes is projected at a nominal growth rate of 10%. Besides, the estimates of revenue receipts do not include other grants that are to be devolved by the Finance Commission. The estimated revenue expenditure for the year 2005-06 is Rs. 21,034.96 crores which is 9.93% more than the 2004-05 Revised Estimates.

He announced that the VAT system would be implemented in the State from April 1, 2005 along with

other States and unified floor rates adopted by the Empowered Committee constituted by the GOI.

As per the priorities of the State Government, the Minister said, additional investments are proposed in the roads, power, irrigation and social sectors. On the roads front, a provision of Rs. 941 crores has been made as against a provision of Rs. 667 crores in the year 2004-05 (Revenue Expenditure) for roads and bridges, which is 41% higher. For upgradation and repairs of State highways and major district roads, a budgetary allocation of Rs. 40 crores has been made for 900 kilometers of roads. Provision of Rs. 96.44 crores has been made for general repairs which is double the allocation of the preceding year.

Besides, 3000 km rural roads would be built at a cost of Rs. 500 crore through Rural Road Development

Authority. Under the Bond-BOT (build operate and transfer) programme, 900 km roads have been completed and construction of 1100 km roads is under progress. Project reports for another five corridors of 465 km

long raods are under preparation. Construction of roads connecting major tourist centres has also been

taken up, the State Finance Minister said in his budgetary speech.

A Provision of Rs. 1735 crores has been made in the Budget for irrigation schemes. The target is to create

additional irrigation potential of 1.5 lakh hectare in the State. Moreover a Water Restructuring Project to

strengthen old irrigation systems and restore irrigation facility to 2.5 lakh hectares has also been taken up at a total cost of Rs. 1919 crores.

Mr. Raghavji said that Rs. 359.55 crores is proposed to be spent for creating additional power generation

capacity in the State. There is also a provision of Rs. 615.43 crore for improving the power transmission

and distribution system.

Under the Sarva Shikha Abhiyan (total education campaign) an outlay of Rs 1253 crores has been proposed. This is Rs. 123 crores more than the outlay for the last year. Under this head, Rs. 300 crores would be allocated for construction of primary school buildings. The programme envisages construction of 5734 school buildings and 10,000 addition rooms along with completion of 5500 school buildings which are incomplete at present, the Minister said, adding that Rs. 22.33 crores are proposed to be spent on establishing schools of excellence at 223 block headquarters.

Mr. Raghavji said that the Rural Credit would be doubled in 3 years. There is also provision of Rs. 5 crores for taking up infrastructure work in selected villages under the Gokul Gram scheme. Proposals for capital investment of Rs. 12,500 crores in industrial sector have been received in the last one year period.

The local area development fund for MLAs has been enhanced from Rs. 40 lakh to Rs. 60 lakh. The Finance Minister announced that the State Government employees appointed after January 1, 2005 would be covered under a contributory pension scheme.

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M.P. Budget focuses on roads, power

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