Orissa exempt entry tax on food items

Bhubaneswar, Feb 18 (PTI) With a thrust on inclusivegrowth and infrastructure development, Orissa government todaypresented a balanced Rs 46,047.75 crore budget for 2011-12which exempted entry tax on several food items in view ofinflation.

Presenting the budget in assembly, finance ministerPrafulla Ghadai said in order to provide relief to consumersand contain inflationary impact on food items, it is proposedto exempt entry tax of one per cent on onion, garlic, ginger,potato, egg, fruits, fish, cattle feed, prawn feed, peas andin packaged form, banana and poultry.

"I am sure the price of these commodities will bereduced and commoners will be benefited," he said.

The finance minister, however, proposed hike of VATfrom 12.5 per cent to 13.5 per cent on 30 items includingcars, refrigerators, ACs, electrical items, televisions,hardware, tobacco and mobile sets.

About Rs 150 crore is expected to be earned by raisingthe VAT while the state government could lose Rs 20 to Rs 25crore by exempting entry tax on food items, Ghadai said.

In a bid to strengthen infrastructure in the state,the budget for the first time proposed to provide Rs 100 crorefor planning and coordination department for creation of astate viability gap fund. "It will attract more and moreprivate investors for the key infrastructure projects in thestate," he said.

Besides, Rs 43 crore has been provided in the budgetof energy department towards viability gap funding ofnon-remunerative transmission projects to be implemented inbackward KBK and tribal districts, the finance minister said.

The budget also proposed to provide Rs 30 crore forworks department towards land acquisition for PPP projects inroad sector, he said.

The total plan size of the state was fixed at Rs15,000 crore for 2011-12 which included an outlay of Rs 13000crore for state sector and Rs 2000 crore for public sectorundertakings, Ghadai said adding that non-plan expenditurewas estimated at Rs 29,594.25 crore.