Terming the Union Budget dull and uninspiring, State Finance Minister Raghavji said his government strongly flayed Union Finance Minister Pranab Mukherjee’s announcement on GST. “They have not taken the states into confidence and are ready to introduce the GST in this session. The budgetary proposals to bring hospitals, pathological tests and education under the service tax net reflects how serious was Mr Mukherjee in his approach to the common man”.
All the states, Raghavji said, had a long pending demand to exempt hospitals and educational institutes out of the tax net. “We have recently decided to exempt hotel rooms up to Rs 2,000 from tax liabilities, in contrast the union finance minister has imposed a tax on rooms up to Rs 1,000 per day. Why they (Central government) want to enter in the state domain. Luxury tax and tax on liquor are state subjects”.
Raghavji also refused to buy the enhanced budgetary allocations on service sector and raise in income tax exemptions limit and said, “The Union Finance Minister has ignored the crucial issue of inflation, he had no choice but to raise the exemption limit more and put more on social schemes. The Centre does not care about states, when we are offering crop loans at one per cent, then why can’t the Centre offer it at least at 2 per cent. The Union Finance minister has ignored the common man. In simplified terms he has ignored the flaring inflation and corruption. More importantly has he advised any concrete steps to check the black money?”
