Maharashtra budget keeps a tab on elections

Maharashtra finance Minister Jayant Patil tried to address concerns of both urban and rural sectors in his 10th consecutive budget, an indication of the fact that elections are round the corner.

While assuring that the state government would take the responsibility of the farmers left out of the central government's recent loan waiver scheme, he also announced abolition of octroi in 15 D Class municipal corporations of the state.

This is also the state's third successive revenue surplus budget. Patil expects a revenue surplus of Rs 964.70 crore, taking the state's total revenue surplus to Rs 4,608.96 crore.

This means there will be no octroi in the 15 municipal corporations like Aurangabad, Kolhapur, Solapur, Sangli, Bhiwandi, Kalyand-Dombivali, Ulhasnagar and Amravati.

Instead, now these cities will shift to the cess system which is in existence in the Navi Mumbai municipal corporation.

In this system, a cess is levied on goods sold in the municipal corporation limits. The corporations which will continue to have octroi are Mumbai, Pune, Nagpur, Nashik, Thane and Pimpri-Chinchwad.

In another initiative to ensure stability of prices in the realty sector, Patil announced levy of a duty on any land falling in the residential, commercial or industrial zones of any city, if it is not developed.

Similarly, for the execution of conveyance deed in favour of the housing society, which is a final document passing ownership of the land to housing society from developer, Patil announced a one-time amnesty scheme.

Patil also announced exemption of the cost of land from the works contract tax payable, if the developer and buyer enter into an agreement for the sale of flat, even before it is ready. However, the power of attorney deeds, which are executed without any consideration to persons other than close relatives, will now be taxed at the market rate.

Patil also announced construction of 1 million houses over next two years for lower income and middle income groups under Indira Awas Yojana, Rajiv Gandhi Gramin Niwara Prakalp, Jawaharlal Nehru Urban Renewal Mission and various schemes of the Maharashtra Area and Housing Development Authority (MHADA).

Trying to address the concern that large number of farmers from Vidarbha and Marathwada would be left out of the central government's farm loan waiver scheme, as land holdings in these areas are higher than the limit of 5 acres, Patil said if any section of farmer was left out from the central government's loan waiver scheme, the state government would not hesitate to take the responsibility of such farmers.

To encourage the culture of repayment, state government would make the loan available to farmers at concessional rates, Patil said. The farmers seeking loan up to Rs 25,000 would be given loan at just 2 per cent and more than Rs 25,000 at 4 per cent.

The state government would compensate the banks for the loss in income, he said.

HIGHLIGHTS

Patil, by presenting his tenth consecutive budget breaks the record of Sushilkumar Shinde of nine consecutive budget

Patil tries to do a balancing act between rural and urban areas in his Rs 964.70 crore surplus budget

Octroi in 15 smaller cities like Aurangabad, Solapur and Kolhapur abolished, will be replaced with cess

Mumbai suburbs to have the floor space index (FSI) of 1.33 instead of one. Developer will have to pay premium

The time limit for availing credit on stamp duty has been reduced from three years to one year

State government to construct 1 million houses over next two years

The tax on aviation turbine fuel to be brought down from 25 per cent to 4 per cent if it is filled outside Mumbai and Pune

State government to take care of loans of the farmers who have not been covered in the central government's loan waiver scheme

Rebate in interest rates to farmers who pay on time

State to exempt crop loans from stamp duty