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‘Populist' Budget for Rajasthan

- Photo: Rohit Jain Paras

THE PROPOSALS:Chief Minister Ashok Gehlot presenting the State Budget in the Rajasthan Assembly on Tuesday.

JAIPUR: Chief Minister Ashok Gehlot, who holds the Finance portfolio, presented a marginally surplus Budget for Rajasthan for 2010-11 in the State Assembly on Tuesday.

Delivering his over two-hour-long Budget speech, Mr. Gehlot appeared back in form with his social sector innovations for which his previous government had caught the public imagination.

The Opposition sat through good humouredly while Mr. Gehlot went non-stop, pausing occasionally either to sip water or make a dig at the BJP. What he offered appeared to be a “populist Budget” when no elections were around though the Opposition got back on him on the urban cess on electricity he proposed.

Mr. Gehlot's second Budget as Finance Minister is of the size of Rs.54,348 crore, 8.32 per cent more than the revised estimates of the previous year. It offers a surplus of Rs.48 crore.

His initiatives on the social sector include offer of wheat at Rs.2 per kg to Below Poverty Line families, weather-based crop insurance in all districts, subsidy on loans taken by women self-help groups, pucca houses for Kathodia tribes, substantial increase in old-age pension and enhancement of the CM's Life Saving Fund.

Tax revenue

The Budget envisages revenue receipts of Rs.42,463 crore while revenue expenditure is estimated at Rs.43,562 crore. The estimates put the State's tax revenue at Rs.19,021 crore. “This Budget is for all,” he said when a journalist referred to concessions granted to the trading community.

The major highlights of the tax proposals include raising the minimum rate of VAT to 5 per cent from the existing 4 per cent and an urban cess of 10 paise per unit on electricity for users consuming more than 100 units per month.

The tax proposals would fetch an additional Rs.550 crore. One-time tax on cars has been rationalised to four slabs charging more on vehicles costing more than Rs.2.5 lakh and two-wheelers of more 100 cc capacities. Cars in the range of Rs.6-10 lakh will be taxed at 8 per cent and those above Rs.10 lakh, 10 per cent.

A five per cent VAT has been imposed on cottonseed oil cake and crow bar. The ceiling of Special Road Tax for all-India permit passenger vehicles has been raised from Rs.25,000 to Rs.35,000 per month and ceiling for one time tax on Special Class Non Transport vehicles is also withdrawn. Mr. Gehlot proposed compulsory registration of mobile towers and imposition of user charges to enhance the income of urban bodies.

There seemed a message behind the concessions as items which have been exempted from VAT include battery-driven motor vehicles, solar energy equipment, apiary items, educational institutions which provide mess facility for less than Rs.1,500 a month to students. Mr. Gehlot chose to reduce VAT on pulses to 1 per cent “considering the inflation” and exempted cinema halls having a maximum admission rate of Rs.50 from entertainment tax. VAT on CFL, marble powder, marble chips, wood of Karzi and Safeda and flour mills of more than 2 HP has been reduced from 14 per cent to 5 per cent.

Perhaps the most thoughtful act on the part of Mr.Gehlot was in bringing down VAT on water tankers from 14 per cent to 5 per cent.

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