Jharkhand’s Rs 33,121.70 crore budget for 2011-12 placed before the state Assembly on Monday by deputy chief minister (in-charge finance) Hemant Soren could not encourage the businessmen and common people.
In the business sector doubts were expressed over the projected growth of 14.14 per cent in next fiiscal in the gross state domestic product from the current level of 6.7 per cent. Businesses told Business Standard that the state had been going slow on spending its allocated funds.
As per official figures, the departments of the state could utilize only 60 per cent of the plan funds from April-February of the current financial year (2010-2011).
The Federation of Jharkhand Chamber of Commerce and Industries (FJCCI) discarded the entire budget as a major disappointment. Its general secretary B K Singh said that it would lead to a rise in unemployment.
In the budget of 2011-12, the state government remained silent over the relaxation of value added tax (VAT). In the last budget of 2010-11, the state had relaxed VAT by 4 per cent on motor parts, sweet meats, confectioneries, besides a number of items giving sop to medium and scale manufacturing units.
Deepak Dokania, vice-president of Adityapur Small Industries Association (ASIA) felt if there was no growth in infrastructure and support services, it would be automatically difficult for the industry to grow.
Presenting the budget deputy chief minister in-charge finance (Soren) said the budget focuses on infrastructure development and all-inclusive growth giving stress on plan allocations for highways and roads, irrigation, energy, agriculture and rural development.
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The budget earmarked expenditure of Rs 17,024,93 crore under plan head including Centre's share of Rs 17024.93 crore.
The state has proposed to spend Rs 16,096.77 crore under non-plan head for payment of salaries, pensions, establishment expenditure etc.
The budged proposed a five-fold increase in incentives for surrendered extremists from Rs 10 lakh to Rs 50 lakh.