Punjab budget: Basic stamp duty reduced despite heavy deficit

Chandigarh, June 20 (UNI) Despite a deficit of Rs 570.41 crore during the current fiscal, the Punjab Budget for the remaining period proposes reduction of one per cent in the basic stamp duty from six to five percent and abolition of VAT on snuff (Naswar).

Presenting the maiden budget of the Shiromani Akali Dal and BJP government, Finance Minister Manpreet Singh Badal announced an expenditure at Rs 24,589.03 crore against revenue receipts of Rs 23,159.54 crore, leaving a net deficit of Rs 4174.01 crore.

Painting a gloomy picture of the state finances, he said Punjab which was once the number one state in the country in respect of progress, now faced 'disaster''.

The total budget size for the year was put at Rs 29,890 crore, while the opening balance for the current financial year would be a deficit of Rs 659.97 crore. However, with public dept, payments, loans and advances, recoveries and public accounts, the current financial year would close with an overall deficit of Rs 570.41 crore.

While proposing no new taxes in the budget, Mr Badal said to meet the aspirations of the people and to mount a credible development effort, the present Government has no choice but to raise additional resources. Therefore he proposed measures like levying Change of Land Use (CLU) charges -- currently being imposed in the periphery area around Chandigarh -- throughout the state, and an upward revision on the royalties the state gets for non-ferrous minerals for additional resource mobilisation.

The measures were expected to generate Rs 210 crore and Rs 200 crore per annum respectively.

Referring to abolition of VAT on Snuff (Naswar), he said it was a product of the cottage industry but 12.5 per cent VAT was being levied on it. This abolition, which is expected to give some relief to the Snuff industry, will result in revenue loss of Rs 12 lakh per annum.

Turning to the agriculture sector, the Minister said to sustain and diversify farming in the state, the government had embarked upon a Pilot Project for Diversification through Agriculture Production Pattern Adjustment Program for productivity and growth and Macro Management Work Plan.

Horticulture would be given special impetus by the government and a sum of Rs 100 crore is proposed to be spent under the National Horticulture Mission in the current year besides strengthening of five Centres for Citrus Cultivation and a new project on Mulberry Sericulture, he added.

Mr Badal said a provision of Rs five crore had been earmarked for setting up 20 Farmers Training Centres. The Government has also prepared a State Plan for rejuvenation of agriculture for which Rs 25 crore would be spent, he added.

He also proposed to enhance the revolving cash credit limit for farmers from Rs four lakh to Rs six lakh and abolish the condition of owning at least 10 acres of land for availing a tractor loan.

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