Low-cost mobile phones, induction cookers, LED bulbs and lights, flavoured milk and computer spare parts will cost less in Chhattisgarh as the state has slashed VAT on these items to 5 per cent in the budget 2013-14 which focuses on the agriculture and allied sectors.
Apparently eyeing the Assembly polls due later this year, Chief Minister Raman Singh, who presented the Rs 44,169-crore budget in the Assembly today, also announced a bonus Rs 270 per quintal for paddy procured during kharif 2012.
With more than 70 lakh tonnes of paddy procured during the season, approximately Rs 1,900 crore would be disbursed to farmers, Singh said.
Remuneration of Anganwadi workers and helpers would be increased from Rs 3,000 to Rs 4,000 and Rs 1,500 to Rs 2,000, respectively.
Singh also announced that 77 new hostels and 20 new residential schools (ashrams) would be set up, and all the girls hostels would get new buildings.
The VAT on medical oxygen has also been reduced from 14 per cent to 5 per cent while composition fee on road contracts had been reduced from 2 per cent to 1 per cent.
Singh, who also holds the finance portfolio, stressed the theme of inclusive growth in his budget speech, and underlined government's commitment to the development of farmers, women and children, youth and marginalised sections, particularly the Scheduled Castes and Scheduled tribes and the unorgnised labour.
The budget gave respite to farmers in purchasing paddy transplanter by making the product tax-free. Entry tax on soyabean has also been waived.
Implementation of Food Security Act is another key feature. It aims at guaranteeing food entitlement to 42 lakh poor families, who will be provided rice at Re 1 and Rs 2 per kg (for different categories) and pulses (grams) at Rs 5 per kg, Singh announced. This would cost the state exchequer a whopping Rs 2,000 crore annually.
Giving respite to industries, state government has curtailed VAT on TMT steel bars from 5 to 3 per cent while that on light diesel oil is reduced from 25 to 14 per cent.
Entry tax on iron ore and pig iron and steel scrap purchase from outside the state and iron ore pellets has been reduced from 1 to 0.5 per cent while that on furnace oil purchased from outside the state has been reduced to 5 per cent from 10 per cent.
