Rajasthan Chief Minister Vasundhra Raje on Tuesday presented the State’s Budget for the year 2016-17 with an outlay of Rs 99,692 crore.
The fiscal deficit for 2016-17 —with the impact of Ujwal DISCOM Assurance Yojana (UDAY) – Central government’s State electricity distribution utility revival scheme – has been estimated to Rs. 43,147 crore, which is 5.62 per cent of the Gross Domestic Product. The budget included an allotment of Rs. 31,540 crore towards the Power sector. However, of the 31,540 crore, a major amount of Rs 20,133 crore would be spent in UDAY.
While presenting the budget, Ms. Raje, who holds the finance portfolio, said, “By not trying to save the DISCOMs [distribution companies] from going into grave losses the previous [Congress] government left the DISCOMs with a debt of about Rs 80,000 crore …Through UDAY scheme, we have taken a brave decision to relieve the State of the financial stress that the previous regime [Congress] left it with.”
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While the Value Added Tax (VAT) was exempted in items including solar torch, biomass stove, kerosene lamp, it was reduced from 14.5 percent to 5.5 percent for items including pen drive, memory card, and health and fitness equipment.
However, the VAT was increased for certain items “to generate additional financial resources” including that in aerated water where it was increased from 15 percent to 20 percent.
Calling it an “all-round” budget, Ms. Raje said, “In the first two years of our government we planned the budget for sustainable, inclusive and equitable growth…. This year’s budget is an all-round one where we have tried to take care of all sectors.”
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State Pradesh Congress Committee chief Sachin Pilot called the budget a “list of superficial announcements.” “Rajasthan is undergoing a grave shortage of drinking water and water for irrigation. Not even 10 per cent of the announcements that were made last year regarding drinking water and irrigation have been completed,” Mr. Pilot said.