The Madhya Pradesh government is to maintain its focus on social sector in its annual budget to be presented on 25 of this month.
The state has plans to increase its plan expenditure to more than Rs 20,000 crore. However, it would be impossible for Finance Minister Raghavji to cut down non-plan expenditure, which will swell up from existing Rs 27,000 crore due to the 6th Pay Commission revisions. “We can’t help it as we have to pay revised pay to our staff,” the minister said.
“State,” according to a well-placed source, “will increase outlay for health, women and child welfare, good governance and resource development besides an increased plan outlay for agri-extension activities. Farmers may get more but cheaper credit after the budget.”
However the source said, “The minister is most likely to increase upper slab of the value added tax this year from 12 per cent to 15 per cent to compensate revenue losses against Central sales tax.” The state government is also likely to increase allocation for social security schemes for the poor, labourers and women, rural technology and drinking water.
Boasting figures for increased gross state domestic product (GSDP) during 2008-09 Raghavji said,”We have handsomely attained 8.67 per cent of GSDP as our primary sector contribution to it has gone up by 9.17 per cent, fisheries 11.18 per cent, power, gas and water supply by 17.67 per cent and 13.72 per cent from finance and insurance sector besides 14.64 per cent from public administration.”
The per capita income of the state, however, has slightly improved to Rs 14,918 on constant prices against Rs 13,943, an increase of 6.99 per cent, yet MP is still far away in the national list. “We are probably the third last in the national list, earlier we were the poorest state,”the minister said.
