Pro-farmer, tax-free Budget for Goa

In a bid to woo the electorate in favour of the Congress during the forthcoming assembly elections in the state, Goa chief minister Pratapsingh Rane presented a 'tax-free' Budget for the year 2007-08, offering a number of sops to the social and commercial sectors.

"The state's economy could be managed with the revenue collected by the government, without putting additional burden on common man. The Budget is in the interest of the common man, not specifically aimed at attracting the voters," the chief minister told reporters after presenting the budget.

The Budget has substantially showered concessions on senior citizens, women, children and the agriculture sector in particular, while manufacturing, information technology (IT), small hoteliers and liquor industry have been offered marginal concessions.

Listing out various schemes for farmers, the chief minister dedicated considerable time to list the initiatives envisaged for giving a fillip to the agriculture sector. The subsidy for water pumps up to 3 HP has been increased from 25 per cent to 90 per cent, and for 10 HP, it would now be 50 per cent.

Other incentives offered to farmers include an increase in the subsidy for RPVC pipes from 25 per cent to 50 per cent, with a cost ceiling of Rs 25,000 per hectare; 50 per cent subsidy for payment of insurance premium for cover against accidental fire hazards and extension of custom service facilities of providing departmental machinery on hire to paddy crop.

Among other 'popular' proposals are exemption of tax on geometry and colour boxes, crayons, chalks, pencil sharpeners, writing instruments and pens costing less than Rs 50, graph books, exercise and laboratory note books currently taxed at 4 per cent.

Similarly, religious items such as sacred thread, religious pictures, rakhi kirpan also would be exempted from tax.

Rane has also proposed a scheme for revival of rural co-operative credit institutions by cleansing their balance sheets and rejuvenating their activities. He has also proposed setting parameters of performance and incentive-based support to revive the Sanjivani Sahakari Sakhar Karkhana Limited.

In a bid to attract industries in Goa, the chief minister announced that the government would give entry tax exemption on machinery and equipment for new and existing units, which would be investing 50 per cent or more in expansion in machinery and equipment.

An incentive mechanism has been promised for setting up new environment-friendly and viable industrial units in the backward taluks of the state. To encourage use of glass bottles in place of plastic, tax on mineral water in glass bottles has been reduced from 12.5 per cent to 4 per cent.

Export fee on IMFL and wine has been removed.

The chief minister also announced a hike in pension for the journalists from Rs 1,000 to Rs 1,500. He also announced various proposals aimed at the welfare of government employees, including enhancement of car loan limit up to Rs 5 lakh or 25 times the basic pay, whichever is lower, without any limit on the basic pay. Besides, government employees would now get loans for purchase of desktop or laptop computers at two per cent interest rate, without any limit on basic pay.

He said the government was studying the representation made by the Goa Government Employees Association for increasing the retirement age to 60, and a decision in this regard would be taken in the interest of all concerned.

The government has also proposed to start two private medical colleges and one dental college in the state. In order to promote Goa as a medical tourism destination, the medical facilities in the state would be upgraded. All students in schools from class I would be given health cards after proper check-ups.

A centre for women study would be set up at the Goa University in Dona Paula, he said. Similarly, budget allocations have been made for upgrading the Goa Pharmacy College and the Goa Engineering College.

The total budgetary expenditure for the new financial year is Rs 4,409.97 crore, as against Rs 4,160.62 crore for the year 2006-07, an increase of 6 per cent. As per the Budget estimates, the tax revenue is likely to be Rs 4,303.93 crore (an increase by 6.33 per cent over the last year's figure of Rs 4,047.66 crore) of which Rs 1,556.92 crore will be tax revenue, and Rs 1,617.32 crore will be non-tax revenue.

Rane said the revenue deficit had been reduced to Rs 21.85 crore in the financial year 2005-06 and it was anticipated to be Rs 34.86 crore in the year 2006-07.

The chief minister also said that zero growth in fiscal deficit had been projected in estimates for the new financial year. He further said that following the passing of the FRBM Act by the state assembly, the Centre had decided to write off debt repayment liability of about Rs 32 crore during the year 2006-07.