Rs 3 cr limited deficit budget placed in Bengal Assembly

Kolkata, Mar 16 (UNI) West Bengal Finance Minister Asim Dasgupta today placed a Rs three crore 'limited deficit budget' proposals for 2007-08 in the assembly with the main focus to generate at least 800,000 additional jobs and improving the scale of public income.

Presenting the budget for the next fiscal in the 294-member assembly which was boycotted by the entire opposition on the Nandigram issue, Dr Dasgupta said of the total budget proposal for Rs 46,214 crore,the amount of planned expenditure was Rs 10,224 crore, which was 22 per cent more than the current year figure.

He said, ''though the total deficit for next year was estimated at Rs 153 crores, with the proposed additional resource mobilisation of Rs 150 crores, the final deficit would amount to only Rs three crores.'' He said of the proposed eight lakh new employment generation by next year, the maximum 4,50,000 would be created in the Small and Medium enterprises(SME) and the SSI sectors, followed by about 3,00,000 in the agricultural sector and the remaining 50,000 in the organised industrial sector in the state.

This apart, he said, steps were being taken to create nearly 20,000 more jobs for the state government employees who would also be given an additional three per cent DA, to be merged with the basic during the next fiscal.

West Bengal, he said, was the only state which had been able to reduce the rate of unemployment from nearly four million last year to around 3.3 million this year and was all set to reduce it further during the coming months.

Referring to his tax proposals to increase the government revenue margin on one hand and generate more funds for the state exchequer on the other the finance minister said in order to bring relief to the consumers he proposed huge tax cut in several items, including that on auto spare parts, electric fan, air-conditioners and plywood items from the present 12.5 per cent VAT to four per cent VAT.

However, he said, the government had no other option but to marginally increase tax on cigarettes,for purchase of costly flats of over Rs 25 lakhs each and on country liquor among a few other things.

The imposition of fresh taxes would generate an additional revenue for the state exchequer to the tune of Rs 150 crore,while in terms of government expenditure it would be in the range of Rs 147 crores.

Regarding the payment of another instalment of Dearness Allowance to government employees, Dr Dasgupta said it would also cost the state exchequer an additioinal burden of Rs 378 crores.Similarly, the 25 per cent increase of government's financial assistance to the employees of closed government factories and workshops had been increased from Rs 500 to Rs 750 per month during the next financial year which would cost the state government around Rs 178 crore more, Dr Das Gupta said.

Incidentally, todays' two-hour long budget was boycotted by the entire opposition, comprising the Trinamool Congress and the SUCI members, to protest the Nandigram mayhem on March 14.

UNI