No new taxes in MP budget

In an effort to please all sections of society in poll-bound Madhya Pradesh, state Finance Minister Raghavji today proposed a cut in value-added tax on diesel in his fifth budget, which has a deficit of Rs 91.43 crore.

He also announced a hike of 4 per cent in dearness allowance for state government employees, and promised wheat at Rs 3 per kg and rice at Rs 4.50 per kg for people below the poverty line.

Presenting the budget after most of the announcements had already been made by Chief Minister Shivraj Singh Chouhan, Raghavji also imposed no fresh taxes.

He removed entry tax on cotton yarn, textiles produced by state mills, and sponge iron and iron scrap used in state induction furnace mills. "We have slashed VAT on diesel further from 26 per cent to 25 per cent because diesel and petrol prices have gone up.