 "Punjab FM Parminder Dhindsa")
The Akali-BJP Government in Punjab today presented budget for FY 2016-17 proposing sops for Industry and agriculture and imposed no new taxes.The Finance Minister of Punjab, Parminder Singh Dhindsa announced a VAT relief from 6.05% to 3.63% to the spinning sector. Punjab has close to 165 spinning mills having 4.25 million active spindles with a capacity to consume 6.5 million to 7 million bales annually. This reduction in VAT will help the Punjab's spinning sector to compete in the national market.
The Finance Minister also proposed to set up a High Tech Cycle valley in Ludhiana with a state-of-the-art Common Facility Centre in an area of 300 acre. Ludhiana is the largest cluster of cycle industry in country with over 90% of country's demand of cycles I met from here. The industry has been in the doldrums due to lack of up gradation, the budget proposal aims to rejuvenate the sector dominated by MEME units.
The total budget size for the year 2016-17 is Rs 86,387 cr that includes Rs 19,500 cr towards ways and means transactions.
Dhindsa informed the house that revival of real estate was also a priority area and it would boost the demand on many fronts. The budget proposed to slash the collector rates used for assessing stamp duty all over the state by 15%. He also proposed a rebate of 25% on CLU (Change of land use), EDC (External Development Charges and license fee on all new housing projects.A higher rebate of 50% on CLU, EDC and licence fee was proposed for affordable housing projects.
Among the major announcements for the farming sector, the budget contains the proposal of interest free loan of Rs 50,000 per acre to the farmers with a land holding of less than 5 acre. The small farmers have been paying a 4% interest on Rs 50,000 loan under the current schemes.Tax exemptions for agriculture allied activities like bee farming and pig feed have also been incorporated in the budget proposals.
The Minister informed the media that the tax concessions would entail an annual extra burden of Rs 1,200 cr on the state exchequer. He added that a 7% increase in state's own tax revenue and 13%-14% increase in the devolution of funds from centre would help meet the increased expenditure.He did not explain about the additional resource mobilisation of Government.The accumulated debt of Punjab in FY 2015-16 is pegged at 1,24,553 cr and is projected to be revised at 1,30,000 cr in FY 2016-17, told Dhindsa.
No new taxes are announced in the 2016-17 budget of Punjab. The state is in the lection mode as the assembly elections are expected in January/February 2017.The Chief Minister Parkash Singh Badal and his son Deputy Chief Minister Sukhbir Singh Badal are eyeing a third successive tenure.The revival of SYL (Satluj Yamuna Link) Canal issue has been dominating the budget session. Punjab legislature has passed the resolution to de-notify about 4000 acre of land acquired for SYL and return it to the land owners. The matter is also pending in the Supreme for hearing under Presidential reference.
