By proposing VAT waiver on bio-fertilizers and not imposing any new taxes, Haryana Finance Minister Captain Abhimanyu on Tuesday presented the Budget of the first BJP government that seeks to stand by its motto of “sabka saath, sabka vikas” (with all, development for all).
Apart from giving relief on bio-fertilizers which, he said, were being taxed at 12.5 per cent by the previous government while chemical fertilizers were enjoying subsidy, the Minister also proposed to reduce VAT on LED lights, pipe-fittings and prefabricated steel structures to 5 per cent to encourage their use.
“I am certain that in spite of these concessions, we will have buoyancy in our tax receipts next year because of the simplified administration and better compliance”, he reasoned.
The Budget has also proposed supply of bajra and maize at a subsidised rate of Rs 1 per kg through the public distribution system in addition to the supply of wheat at a subsidised rate of Rs 2 per kg.
The Minister said the Budget focussed on capital expenditure and infrastructure development and gives priority to skill development and job creation while at the same time seeking to remove social and regional disparities.
He said keeping with the target to eliminate revenue deficit which was set by the Haryana Fiscal Responsibility and Budget Management Act, 2005, the Budget seeks to restrict the deficit at 1.83 per cent in 2015-16 as against 2.10 per cent in Revised Estimates of 2014-15. He said the fiscal deficit would also be capped at 3.25 per cent and the borrowing limit at 3.25 per cent of Gross State Domestic Product.
The government has also proposed increasing the incentive money under the Inter-Caste Marriage Scheme to Rs 1 lakh from Rs 50,000.
The Budget has also doled out monies for BJP’s pet programmes. It provides Rs 20 crore for setting up a State Museum in Kurukshetra and for setting up a Saraswati Heritage Development Board for “research, restoration and promotion of the culture of Saraswati”.
In his reaction to the Budget, Chief Minister Manohar Lal Khattar said higher allocations to most key sectors without raising any new taxes were reflective of the government’s resolve to implement the promises made to the people in its manifesto.
Speaking to the media at the Haryana Assembly, Congress national spokesperson Randeep Surjewala said the Budget lacked both drive and direction.
He said while the Budget document itself noted that Haryana had posted a 8.8 per cent annual growth during the 11th Five Year plan period from 2007-12, which was the time of Congress rule, the Government has not done enough to sustain that growth. Rather, he said the dependence appeared to be more on borrowing with external borrowing from market pegged to grow to 21.54 per cent from 19 per cent in this fiscal.
Former Chief Minister Bhupinder Singh Hooda said the government has also not provided any relief to anyone despite making over 150 promises in its manifesto.
Kiran Choudhry, Leader of the Haryana Congress Legislature Party, said the Budget was devoid of foresight and belied all expectations of the common man, especially the farmers.
The Left parties have also criticised the Budget.
