GANDHINAGAR: Gujarat Finance Minister Vajubhai Vala has presented a tax-free budget for 2007-2008 and announced an additional tax relief of about Rs. 400 crore leaving an uncovered deficit of about Rs.70 crore, which he hoped to meet by tightening the belt and reducing non-development expenditure.

Presenting the budget estimates in the State Assembly here, Mr. Vala, announced relief of over Rs. 223 crore in electricity duty, about Rs.126 crore in stamp duty, Rs.47 crore in registration fees and about Rs.4 crore in entertainment and luxury tax. Mr Vala estimated a revenue surplus of Rs 329.28 crore at the end of the year, which would be offset by tax relief of Rs.400 crore, leaving a marginal deficit of Rs. 70.42 crore.

The Gujarat Chamber of Commerce and Industry president, Pankaj Patel, said the trade and commercial sector was disappointed over the budget.

Mr. Vala also announced the Rs.15,506-crore Annual Plan for the next financial year with the highest outlay of over Rs.6,265 crore earmarked for the social sector including drinking water and health projects and said the State's 11th five-year plan outlay would be a massive Rs.1 lakh crore, more than double the tenth plan outlay of Rs. 47,000 crore. He said the State had even surpassed the Planning Commission's expectations of registering a growth rate of 10.02 per cent by achieving a 10.62 per cent growth rate in the current financial year.

While Chief Minister Narendra Modi described the budget as "pro-people" benefiting more than 90 per cent of the poor and middle class families, the Leader of the Opposition, Arjun Modhvadia, described it as "anti-people" and of benefit only to industrialists and builders.

The presentation of the budget was delayed by more than an hour due to adjournment of the House during question hour following disturbances after a Congress member accused the Government and the Chief Minister of being "hand-in-glove" with the anti-social elements causing a spurt in suicide and kidnapping cases. On a motion moved by Parliamentary Affairs Minister Ashok Bhatt, the House suspended four Congress members for the entire budget session, which began on Thursday. As commotion continued even when Mr. Vala was presenting the budget, marshals were summoned by the Speaker to physically evict the suspended members from the House.

Mr. Modhvadia later described the suspension of the four members of his party as "murder of democracy."

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