Reports on economy to accompany budget
THE STATE?S budget being presented tomorrow will be accompanied by a host of reports on financial health of Madhya Pradesh under the Fiscal Responsibility and Budget Management (FRBM) Act.india Updated: Feb 21, 2006 14:51 IST
THE STATE’S budget being presented tomorrow will be accompanied by a host of reports on financial health of Madhya Pradesh under the Fiscal Responsibility and Budget Management (FRBM) Act.
Finance Minister Raghavji could also give statement on medium-term fiscal policy, fiscal policy strategies initiatives and a statement on macro economic framework.
Important statements on economic and socio indicators are also expected with the budget. For the first time, the Finance Minister would give details of the State’s interest liabilities, guarantees, consolidated funds, revenue demands and actual realisation besides salary commitments to the employees.
Information about guarantee redemption fund and outstanding liabilities of the State Government are also likely. The proposed budget is likely to spell out details regarding introduction of Value-Added Tax (VAT) and rationalisation of existing sales tax structure, besides announcing a series of measures for resource mobilisation to mop up revenue for development initiatives.
With introduction of VAT, costs of textile material, sugar and tobacco products are likely to shoot up. These three items could also fetch additional resources to the State Government.
The forthcoming budget is expected to focus on preventing pilferage of taxes. Special packages could be given for development of infrastructure and also for uplift of people of the SC, ST classes.
Additional resource mobilisation through tax measures to bridge the gap between revenue and expenditure is likely to be the core of the budget.
The Finance Minister is likely to provide additional resources to health, energy, road, water resources and education sectors.
However, as the Government is aware of the fact that the scope for raising additional resources from direct taxes is limited, focus area to generate additional revenue would be indirect taxes. In addition to that, process of further reducing the subsidies, reduction in the non-planned expenditure and to maintain buoyancy in tax collection would continue.
According to sources, the State Government is also contemplating to provide Rs 100 crore for implementing Antyodaya scheme, which is going to be a hallmark of the Shivraj Singh Government much like Panch-Ja was Uma Government’s and Gokul Gram was subsequent Babulal Gaur Government’s. A corpus of about Rs 100 crore, lying with various mandis of the State, would be used to fund Antyodaya scheme