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Chhattisgarh government had offered slew of sops for the small and medium enterprises for reviving from the crises it had been facing following economic slowdown.
Keeping in view the continuing economic recession that has adversely affected growth prospects of local industries, particularly small and medium scale iron and steel industries in the State, Raman Singh, proposed a series of tax reliefs for the local industries and cottage industries to revive them from recession in the budget estimates that he presented Saturday afternoon.
Estimating the total outgo at Rs 54,710 crore in the fiscal 2014-15, the size was 23% higher than the outlay of Rs 44,382 crore for 2013-14.
Gross Fiscal deficit is estimated at Rs.5,761 crore. Inspite of higher social sector and development expenditure, the fiscal deficit had been contained within the prescribed limit of 3% of GSDP as per FRBM Act. “This has been made possible because of growth in State's own tax revenue and effective control of non-development expenditure,” Singh said after presenting the budget.
The total plan outlay estimated at Rs.35,322 crore is 65% of total budget outlay. The budget allocates 36% of the total plan expenditure for tribal sub-plan and 12% for the scheduled caste sub-plan area.
A big breather had however come for the industry. “It was under the policy of the state government to give relief to the small and medium industry as it had been generating jobs for the local people,” the chief minister said.
With a view to make small and medium scale iron and steel industries competitive, central sales tax to be reduced from 2% to 1% on goods manufactured by them. Entry tax to be waived on Iron Ore Pellets and Billets imported by small and medium steel industries from outside the State to ensure adequate supply of raw materials to them
The Value Added Tax (VAT) on bicycle and its parts manufactured by local industries would be reduced from 5% to 2%. The state government also announced to reduce entry tax on Coking Coal imported by Bhilai Steel Plant from 6% to 1%.
Similarly, entry tax on bauxite will be reduced from 3% to 1% while in order to facilitate revival of sick industries, stamp duty of 5% being levied at present had been proposed to be waived.
With a view to encourage use of Unplasticised polyvinylchloride (UPVC) as an alternative to wood for making doors and windows, VAT had been curtailed from 14% to 5% on the product. The government also announced to waive VAT of 5% on soybean.
The state government had launched a new called "Noni Suraksha Yojana" to be launched for the girl child of BPL families. In order to promote positive gender ratio and equal and respectable status to girls in the society, a sum of Rs 5000 would be deposited annually for five years and the matured sum of 1 lakh will be given to the girls.
The budget provision also made sure free education to girl students of government colleges upto graduation. The interest rates on education loan had been reduced to 1% under the “Mukhyamantri Uchcha Siksha Krinn Anudan Yojana” besides interest free education loans for students of naxal affected districts.
