MP tax on leased mining land to net Rs 150 crore

MADHYA PRADESH BUDGET/ Advance payment of deferred taxes for industry to mop up Rs 50 cr

The Madhya Pradesh government today presented a Rs 214.03 crore deficit budget. Barring a few sops, the state Budget is silent on the issue of employment on which BJP had flayed Congress on various occasions and had promised creation of 5 lakh jobs.

An Employment Board has also been created for the purpose. The opening balance of the state for fiscal 2005-06 has been estimated at Rs (-) 195 crore and the net budgetary deficit for the year is expected to be Rs (-) 18.28 crore. Thus the net transaction at the end of the year 05-06 will be Rs (-) 214.03 crore.

The government has decided to levy tax on land notified for mining of minerals (this will garner Rs 150 crore), advance payment of deferred taxes for industrial units (to collect Rs 50 crore) and has exempted stamp duty on mortgages taken against loan of Kisan Cards.

The state government has also reduced stamp duty from 0.5 per cent to 0.1 per cent in case of transfer of instrument of assignment of debt against non-performing assets in favour of reconstruction and securitisation companies by banks and financial institutions.

For the first time the Budget has said that revenue estimates are based on VAT (Value Added Tax) implementation.

The state government has also reduced the budgetary allocation by ignoring the chief minister's demand of a Rs 100 crore separate fund allocation for Gokul Gram and Ayodhya Basti scheme.

A fund of Rs 474 crore has been allocated for infrastructure development in Gokul gram under Swarna Jayanti Gramin Rojgar Yojna and an additional arrangement of Rs 5 crore for infrastructure development for Gokul gram.

The Finance Minister announced an amount of Rs 941 crore for roads, Rs 359.55 crore for creating additional capacity generation of 402 MW, Rs 615.43 crore for improving transmission and distribution losses, a provision of Rs 1735 crore for irrigation schemes, an outlay of Rs 1253 crore under education for Sarva Siksha Abhiyan with an additional allocation of Rs 103.43 crore for schedule category and schedule tribe Ashram schools.

Among other decisions, the state finance minister said he was committed to ensuring construction and repair of roads, which were in extreme bad conditions. "A fund of Rs 96.44 core has been earmarked for the purpose. Additionally, 3000 km rural roads will be constructed with a cost of Rs 500 crore through Rural Road Development Authority.

"Pradesh Ke Har School Ki Building Hogi (each school will have a building)," said Raghvaji adding, the programme envisaged to construct 5734 school buildings and 10000 additional rooms along with completion of 5500 school buildings, which were incomplete at present.

The state government had a target to ensure that all primary schools have regular buildings by the year-end. Allocation of Rs 171 crore has been made for Mid-day mean programme, which as improvement enrollment and attendance.

The government has also exempted Rakhi, Chalk sticks, chatai (except synthetic) bangles made of shellac, sea-shell and plastic, broom made of locally grown grass, lentil and peanut shells, Dona and Pattal (plats made of teakwood tree leaves), seeds of grass, vegetables and flower, container made of bamboo sticks, poha (crushed rice) from VAT. Further food grains, which are taxed at 1 percent at present, will be exempted from VAT, said Raghavji.

The revenue deficit for the year 2005-06 as a percentage of gross state domestic product is less than 1 per cent. The revenue receipts are estimated at Rs 19848.27 crore and expenditure at Rs 21034.96 crore, net public debt is estimated at Rs 4717.46 crore and loans and advances receipts at Rs 861.61core and expenditure at Rs 588.39 crore while net public debt is estimated at Rs 5649.78 crore and net from public account (-) 37.13 crore.

Thus the state has receipts of Rs 26322.53 crore and expenditure of Rs 26340.81 crore.