MP finance minister Jayant Malaiya presented a revenue surplus budget of Rs 5588 crore in the assembly on Wednesday. The total expenditure in the state budget stands at Rs 1,31,199.1 crore which is about 12% more than the previous budget of Rs 1,17,041 crore.
Interspersing his budget speech with couplets and poetry, the finance minister said that the budget 2015-16 is inspired by the slogan, 'make in Madhya Pradesh'. Consequently, the budget focuses on infrastructure, human resource and skill development as tools for generating employment for youth and enhancing production, he claimed.
Presenting his 2nd and the BJP government's 12th budget, the finance minister said that there has been an enhancement of 11.08% in the gross state domestic product (GSDP) in 2013-14. He mentioned that the fiscal discipline targets under the MP fiscal responsibility act, 2005 were being attained.
He added that the act provided for loans to be capped at 35.30% of the GSDP whereas for 2014-15 they are estimated to be capped at 20.70%. The fiscal deficit too has been capped at 2.99% which is lower than the 3% cap imposed by the fiscal responsibility act, 2005. This is the 11th revenue surplus budget in succession.
Among other key indices, the finance minister said that the total receipts in the budget stands at Rs 1,30,815.3 crore while the total amount for appropriation stands at Rs 1,42,094.3 crore. Of the total receipts, revenue receipts would contribute Rs 1,14,422.9 crore while capital receipts stand at Rs 16392.4 crore.
On the expenditure side, the finance minister said that the revenue expenditure stands at Rs 1,08,834.9 crore while the capital expenditure stands at Rs 22,364.1 crore.
The state government has increased levies and taxes on sand, flooring stone and a stamp duty on fresh arms licenses and renewals. The state government proposes to set up a trader welfare board to extend financial help to traders and their families in cases of accidents or untimely deaths.
The finance minister announced that it was proposed to reduce value added tax (VAT) would from 13% to 5 % on 40 articles. VAT is also proposed to be slashed on aviation turbine fuel (ATF) from 13% to 4 %. Fee on driving licenses issued to women has been waived in the budget.