State Minister of Finance, Planning and Forests Sudhir Mungantiwar will present an interim budget for Financial Year 2019-20 when the Assembly meets in February. Contrary to speculation that a full budget could be introduced before the impending general and State election — likely to be held in close proximity to each other — the transition budget will include a vote-on-account highlighting the achievements of the Maharashtra government.
The fifth budget of the incumbent Devendra Fadnavis government will also seek the legislature’s nod for expenditure to be incurred during part of the fiscal year or minimum of four months, senior officials said.
“We are gearing up as per the established convention before elections to present an interim budget. This will typically retain the income and expenditure sides, along with the usual heads to only present the government’s vision for the next five years,” said U.P.S Madan, Additional Chief Secretary (ACS), (Finance), Maharashtra Government.
While there is no established rule barring the government from introducing new tax measures, the interim budget will not see any changes in that regard. The latest imposition of a 1% additional stamp duty in the form of surcharge on sale gift, and mortgage of immovable properties in Mumbai is the last tax measure to be introduced before the next elections, officials said.
“Usually no new schemes are announced and tax measures introduced during the transition budget. We will stick to that convention,” Mr. Madan said.
Impact of GST
Once the four-month period is over, revised estimates are presented for a full year by the new government. The governments taking over could further amend the estimates as it finds fit and necessary. However, with the new Goods and Service Tax regime in force, the incoming government may not have much room to make immediate tax changes, officials said.
Mr. Mungantiwar had presented a ₹15,275 deficit budget for 2018-19, blaming the Opposition for what ails the State economy for the past 15 years. The budget focused largely on infrastructure and agriculture.
