MP budget on Feb 26, expectations galore
As Madhya Pradesh finance minister Jayant Malaiya presents his 3rd budget on Friday, a slew of expectations await him from various groups.bhopal Updated: Feb 24, 2016 20:32 IST
As Madhya Pradesh finance minister Jayant Malaiya presents his 3rd budget on Friday, a slew of expectations await him from various groups.
While industrial and trading groups expect the state government to reduce taxes to make business competitive, economists feel that the middle class should not expect a major relief, given the precarious nature of finances in the state.
Govt has to ensure revenue collection: Economist
Economist RS Tiwari says that the budget is expected to be pro-agriculture but the middle class should not expect a relief in taxes. “The state government has to face the impact of 7th pay commission and various schemes it has announced and has to ensure revenue collection. The state government has very few options for enhancing revenue and will not let go of them,” he said. “One can hope that what the middle class has is not taken away. One should really not expect some relief to come its way,” he added.
Joint president of the Federation of MP Chambers of Commerce and Industry (FMPCCI) RS Goswami says that they have demanded a samadhan scheme (redressal scheme) for cases of commercial taxes that are pending for a long time. “We have also demanded that changes in form 49 not be made over and over again especially since the goods and services tax (GST) regime will be rolled out soon. The need of the hour is simplification and changes only add to complication,” he said. Goswami also said that unlike other states in Madhya Pradesh, traders do not get certificate from departments for tax deducted at source (TDS) for VAT. “Consequently, traders have to pay tax a second time. When other states have done this, MP should do it too,” he said. The deduction should be reflected in the TIN which is what the union government does, he added.
Got should reduce VAT on petrol and diesel: CAIT
Spokesperson of the Confederation of All India Traders (CAIT) Vivek Sahu said that the state government should reduce VAT on petrol and diesel as this affects the charge on transportation of goods and makes it less competitive. “VAT on fuels is lower than MP in many other states which makes them better placed to get business,” he said. The state government should simplify processes for setting up businesses as this would also contribute to employment.
Yogesk Kumar of voluntary agency Samarthan says that the state government needs to enhance focus on social sector spending. “The state government has been claiming that the state GDP has increased by more than 10% every year but then why is spending on many schemes reducing? While many states have almost started paying Rs 750-1000 per month to beneficiaries of old age pensions, MP still pays a measly Rs 250,” he said. He added that the union government has been reducing spending on social sector schemes and unless the state government increases its spending, the poor will suffer.
First Published: Feb 24, 2016 20:32 IST