Haryana govt. refrained from imposing any new taxes in budget 2016-17 and proposed an amnesty scheme for traders affected by Jat quota stir, while announcing taxation relief for several products and hiking allocations to key sectors to boost infrastructure and jobs.
While presenting his second Budget, Finance Minister Abhimanyu on Monday swore by “Sabka Saath Sabka Vikas” to ensure a balanced, equitable and accelerated growth of all sections of State, irrespective of caste, creed or community and geographical locations.
The State, which is also celebrating the Golden Jubilee Year of its formation in 1966, saw a budgetary increase of 28.4 per cent to Rs 88,781.96 crore for 2016-17 over a year ago.
The Finance Minister has also proposed to cut tax on footwears, with MRP of above Rs 500, from 12.5 per cent to 5 per cent and exempt shoe uppers from VAT.
In order to encourage agro-based industries, tax exemption has been proposed on ‘Khal’, ‘Binola’, ‘Besan’ and cotton yarn manufactured in the State.
With a view to promoting clean environment, Mr Abhimanyu has proposed to reduce tax from 12.5 per cent to 5 per cent on the sale of electrical vehicles.
In order to provide relief to the households and to encourage Micro and Small Enterprises, it is proposed to exempt “Chhota Toka” (leafy vegetable cutter for kitchens) from payment of tax.
Caring for the victims of the recent reservation agitation, the Finance Minister has introduced an amnesty scheme, granting relief in respect of tax, interest, penalty and other dues to the affected registered dealers whose goods were lost or destroyed.
In order to encourage the customers to obtain bills, invoices for goods purchased, the government proposes to introduce “Submit Bill, Get Prize Scheme”. This will enhance compliance on the part of sellers, dealers and bring more revenue to the state exchequer, he said.
Riding the crest of better revenue realisations, Mr Abhimanyu has chosen to tread the path of fiscal prudence. In Budget Estimates 2015-16, fiscal deficit was estimated at 3.1 per cent of GSDP and 2.58 per cent (without UDAY) in Revised Estimates 2015-16.
With initiatives taken for fiscal consolidation, fiscal deficit has been pegged at 2.47 per cent of GSDP (without UDAY) in 2016-17. “This is well within the stipulated limit of 3 per cent of GSDP by the 14th Finance Commission,” he said.
There has been a jump in State’s own taxes as a percentage of the GSDP from 6.3 per cent in 2014-15 to 6.9 per cent in 2015-16.
“More impressive is the fact that this ratio has been showing a declining trend from 2011-12 onwards for four years before this turnaround in 2015-16. In 2016-17, I expect this ratio to be around the same level,” he said.
Under Revised Estimates 2015-16, the total revenue receipts (TRR) are expected to be Rs 54,167.35 crore comprising a tax revenue of Rs 40,436.10 crore and non-tax revenue of Rs 13,731.25 crore. TRR as ratio of GSDP is estimated at 10.7 per cent in 2015-16 RE, against 9.2 per cent in 2014-15.
In Budget Estimates 2016-17, TRR is projected at Rs 62,955.53 crore, of which tax revenue is Rs 46,388.31 crore and non-tax revenue is Rs 16,567.22 crore. TRR as ratio of GSDP is projected at 10.7 per cent in 2016-17.
He said that though no fresh taxes have been proposed, allocations for most key sectors have been increased.
The State government has allocated Rs 13,494 crore for agriculture and allied sectors (including irrigation, cooperation and rural electrification subsidy); Rs 2,824.47 crore for rural development and panchayats; Rs 14,305.34 crore for education sector (comprising elementary, secondary, higher, technical education, industrial training, sports, art and culture). - PTI
