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Gogoi presents Rs. 2,836 cr.-deficit budget for Assam

Special Correspondent

Revenue collection target fixed at Rs. 3,600 crore; sops announced for tea industry

— PHOTO: Ritu Raj Konwar

Assam Chief Minister Tarun Gogoi who is also holding the Finance portfolio having a final look at the budget before going to the Assembly in Guwahati on Monday.

Guwahati: Assam Chief Minister Tarun Gogoi on Monday presented a Rs. 2,836 crore-deficit budget for 2007-08 in the Assembly.

He announced sops for the tea and entertainment industries, but levied taxes on audiocassettes in regional languages, areca nut and luxury boats having accommodation and heritage homes. As an anti-evasion measure, he announced a reduction in value added tax on dry fruits and cashew nuts from 12.5 to 4 per cent.

In his 38-page-long budget speech, Mr. Gogoi, who also holds the Finance portfolio, fixed the target for revenue collection at Rs. 3,600 crore, but admitted that the State had received a number setbacks on the revenue collection front in the current year.

To rejuvenate the tea sector, he proposed to reduce agricultural income tax by 5 per cent and extend the arrear liquidation scheme. He announced that the incentives on tea export through the Inland Container Depot would be extended till March 31, 2008.

The entertainment tax on cinematographic exhibition has been reduced by 50 per cent. Mr. Gogoi also proposed to reduce the amusement tax rate from the existing 12.5 to 5 per cent.

No sops for industry

The budget speech did not contain any sops for industry. Mr. Gogoi said the Government would like to "wait and watch" for the announcement of the North East Industrial Policy, so that it could fine-tune "our package of incentives and ensure that there is full compatibility with the policy to be announced by the Centre."

To commemorate the Satyagraha movement, launched by the Father of the Nation Mahatma Gandhi, Mr. Gogoi proposed an increase in the monthly pension of freedom fighters from Rs. 2,500 to Rs. 3,000.

He proposed an increase in the allocation for the construction of roads and bridges from Rs. 771.08 crore to Rs. 980.65 crore. This would be over and above the Rs. 1,548 crore available to the State under the Pradhan Mantri Gram Sadak Yojana. The allocation for agriculture would be Rs. 365.50 crore against the current allocation of Rs. 327.52 crore.

Mr. Gogoi also announced a switch over to the Contributory Pension Scheme, already announced by Centre. It would be applicable to State Government employees who joined on or after February 1, 2005. The outflow on account of pension payments had increased from Rs. 180.40 crore in 1995-96 to Rs. 1,011.46 crore in 2005-06, he pointed out. For the centrally sponsored National Old Age Pension Scheme, he proposed to raise amount from Rs. 75 a month to Rs. 250.

The speech also included proposals for setting up a Terrorist Victim Welfare Board, and provide bicycles to girl students in rural areas from class VI upto class X below poverty line which were announced by him earlier.

Mr. Gogoi claimed that his Government had been able to restore the financial health of the State, and place it on a path of sustainable, long-term fiscal stability.

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Gogoi presents Rs. 2,836 cr.-deficit budget for Assam

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