Assam Presents Deficit Budget

Assam Chief Minister Prafulla Kumar Mahanta yesterday presented a deficit budget of Rs 636.58 crore for 1997-98 in the state Assembly. The Chief Minister also announced fresh taxes that will fetch an additional revenue of Rs 75 crore.

Mahanta, who also holds the finance portfolio, said the deficit could be covered through the revenue yielded by the fresh taxation and additional receipts likely to accrue from enhanced oil royalty from the Centre.

Transactions during the current year will end with a deficit of Rs 282.15 crore. The net state domestic product for 1995-96 has been put at Rs 15,317 crore at current prices. The year 1997-98 begins with a deficit of Rs 354.43 crore.

 

The Chief Minister said in his budget speech that the present position is mainly the result of cumulative deficits of a number of years which we have inherited.

The rate of land revenue will be increased with effect from July 1. This will yield an additional revenue of Rs 25 crore annually.

The land revenue rates fixed 40 years ago are still prevalent in Assam.

Tax on green tea leaf grown on specified land is being increased from 18 paise a kg to 30 paise a kg. This will fetch an additional revenue of Rs 20 crore in a full year. The full exemption on four hectares of specified tea-growing land will continue.

A concessional rate of 20 paise a kg has been announced for a person holding an aggregate area of specified land not exceeding 40 hectares, in view of the certainly higher cost of producing tea on a small area.

The maximum rate of agricultural income tax payable by tea companies has been reduced from 60 per cent to 45 per cent. The maximum rate of agricultural income tax payable by persons other than companies will also be 45 per cent, but the exemption limit has been raised from Rs 12,000 to Rs 30,000.

The sales tax rate has been increased from 2 per cent to 4 per cent on a number of items.

This will yield an additional revenue of Rs 15 crore.

A 10 per cent luxury tax has been imposed on cigarette, cigar, and scented tobacco, including zarda. This is expected to fetch Rs 14 crore a year.

The non-tax revenue is expected to rise from Rs 336 crore in 1995-96 to Rs 381 crore in 1996-97, regist ering a 13 per cent increase. This will cover revenue from oil royalty, among other things.