)
The Congress-Nationalist Congress Party government in Maharashtra on Thursday presented an additional Budget for 2014-15, projecting a revenue deficit of Rs 4,103 crore, against Rs 3,017 crore in 2013-14. The revenue deficit is 0.2 per cent of gross state domestic product (GSDP).
At Rs 30,965 crore, the state government’s fiscal deficit is 1.9 per cent of the GSDP, while the debt of Rs 3,00,477 crore accounts for 18.2 per cent of GSDP.
At current prices, the GSDP is estimated at Rs 16,53,381 crore.
Finance minister Ajit Pawar has estimated revenue receipts at Rs 1,80,320 crore and revenue expenditure at Rs 1,84,423 crore. In the interim Budget presented on February 25, Pawar had announced a Rs 5,417-crore revenue deficit budget for this financial year.
Contrary to expectations, Pawar refrained from announcing a slew of populist measures, owing to the slowdown and constraints on tax collection.
He, however, proposed tax exemption worth Rs 962 crore to traders, farmers and industry and assured the revenue loss on account of these waivers would be compensated by efficient tax collection.
The Budget proposed an increase in profession tax limit from Rs 5,000 to Rs 7,500. The move will benefit about 800,000 low-wage earners and employees.
The government also proposed an amendment to the Maharashtra Stamp Duty Act to ensure reasonable duties on instruments related to deposit of title deeds, pawn, pledge or hypothecation. A cap of Rs 10 lakh on stamp duty on pawn, pledge and hypothecation was proposed.
To encourage tourism, the state finance minister proposed raising the exemption limit on the four per cent luxury tax to Rs 1,500 from the current Rs 750. Rates exceeding Rs 1,500 will be taxed at 10 per cent. Also, eligible hotels in B and C zones (under the Tourism Policy, 2006) will be exempted from luxury tax.
To give a push to investment in the Multi-modal International Cargo Hub and Airport at Nagpur project, the government proposed exemption in value-added tax on spares of aeroplanes. The finance minister hoped this would create jobs and propel industry in the underdeveloped Vidarbha region.
PRE-ELECTION DOLES?
* 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%
* Sugarcane purchase tax exempted for 2013-14
* Sales/lease of copyrights of cinematographic films for theatrical exhibition exempted from value-added tax from April 1, 2005, to April 30, 2011
* Aeroplane spares exempted to promote repair and maintenance industry. This is to benefit the projects being proposed in the MIHAN (Multi-modal International Cargo Hub and Airport project at Nagpur)
* Cap of Rs 10 lakh on stamp duty for pawn, pledge and hypothecation
* Sales of notified capital goods to department of central or state government liable to tax at 5%
* 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
