Published On : Thu, Jun 5th, 2014

State Budget gives major push to investment in MIHAN, tax exemptions, welfare schemes


The Finance Minister Ajit Pawar hoped that it will propel new industry in the underdeveloped Vidarbha region and create new jobs. Development works in Naxal-affected areas on full-scale. 25 Fast Track Courts. 6 Special Courts at Division level for dealing with cases of atrocities. Traders to get relief on various counts. 

finance ministerNagpur News.

With last chance to capture lost ground in Lok Sabha elections and last opportunity to emerge winner in Assembly elections, the Congress-NCP Government announced a wave of tax sops and schemes in the last Budget of its tenure presented on Thursday (June). Deputy Chief Minister, who is also the Finance Minister tabled the Budget for current fiscal 2014-2015 projecting a revenue deficit of Rs 4,103 crore against Rs 3,017 crore in 2013-14.

The Government, in a bid to give a much needed push for investment in the long pending Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project, has proposed exemption in value added tax (VAT) on spares of aeroplanes. The Finance Minister hoped that it will propel new industry in the underdeveloped Vidarbha region and create new jobs.

The Finance Minister has indicated revenue receipts of Rs 1,80,320.50 crore and revenue expenditure of Rs 1,84,423.28 crore. Pawar in his interim budget presented on February 25 ahead of Lok Sabha polls had projected Rs 5,417.28 crore revenue deficit budget for 2014-15. Pawar has proposed tax exemption worth Rs 962 crore to the traders, farmers and industry. He assured the House that the revenue loss on account of these waivers will be compensated by taking measures for efficient tax collection. The Government, in a bid to lure the working class, has proposed increase in the Profession Tax limit to Rs 7,500 from Rs 5,000. This will benefit nearly 8,00,000 low wage earners and employees. The mentally retarded persons are exempted from the Profession Tax. The proposed revenue deficit is 0.2% of the Gross State Domestic Product (GSDP). The fiscal deficit of Rs 30,965 crore will be 1.9% of the GSDP while debt stock of Rs 3,00,477 crore will be 18.2% of GSDP. The GSDP at current prices is estimated at Rs 16,53,381 crore.

Ajit Pawar has indicated revenue receipts of Rs 1,80,320.50 crore and revenue expenditure of Rs 1,84,423.28 crore. The Finance Minister, in his interim budget presented on February 25 ahead of Lok Sabha polls, had projected Rs 5,417.28 crore revenue deficit Budget for 2014-15.

HIGHLIGHTS:

• Aeroplane spares exempted to promote repair and maintenance industry. This is to benefit the projects being proposed in MIHAN project (Multi-modal International Cargo Hub and Airport at Nagpur)

• Rs 19 crore Bamboo Processing Industry in Gadchiroli

• Rs 810 crore for development of roads in Naxal-affected areas

• Job opportunities in Naxal-hit Gadchiroli District

• Jeevan Amrut Seva for providing blood within hour

• Increase in admission capacity in Government Medical Colleges

• 25 Fast Track Courts

• 6 Special Courts at Division level for dealing with cases of atrocities

• Patrolling by vehicles for safety and security of women

• Implementation of Krishi Sanjivani Schemes for farmers

• 26 lakh more power connections

• Load-shedding only at low recovery places

• Minimum salary limit for Profession Tax increased to Rs 7,500 from Rs 5,000

•  Turn over limit for registration under VAT increased to Rs 10 lakh from Rs 5 lakh

•  Tax rate on cotton reduced to 2% from 5%

• The mentally retarded persons are exempted from the Profession Tax

• Rs 6500 crore works for meeting demand of electricity

• Special efforts for solar power projects

• Provision of Rs 470 crore in the coming three years

• Approval for 400 projects in the State

• Total tax exemption on Poha (Flattened Rice) and Phutana (Gram nuts)

• Provision of Rs 100 crore for Shivaji Maharaj Smarak

• Attractive compensation to project-hit persons

• Cap of Rs 10 lakh on stamp duty for pawn, pledge and hypothecation

• Luxury tax exempted up to Rs 1,000, 4% up to Rs 1,500 and 10% up exceeding Rs 1,500

• Concession in luxury tax for new hostels in B & C zone

• Reduction of late fee for VAT return from Rs 5,000 to Rs 2,000 for delay up to one month

• Sugarcane purchase tax exempted for 2013-14