| Change in land use charges extended, plan outlay at Rs 5,111 crore.
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| Punjab Finance Minister Manpreet Singh Badal, in his maiden budget today, proposed to raise taxes on non-ferrous minerals and state lottery draws, besides imposing a levy on change of land use as part of the state’s Rs 29,890 crore budget for 2007-08.
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| The finance minister said the state had prepared an annual plan of Rs 5,111 crore, which is about 30 per cent higher than the approved outlay of Rs 4,000 crore for last year’s plan, and also higher than the revised outlay of Rs 4,687 crore.
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| Badal presented the budget of the Shiromani Akali Dal-BJP combine government in the state Assembly amid a walkout by the main opposition Congress.
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| While presenting the budget, which showed a deficit of Rs 570.41 crore, he said the change in land use charges would be levied throughout the state and would be notified by the department of housing and urban development. This measure is expected to generate Rs. 210 crore per annum. At present, change in land use charges are being imposed in the periphery area around Chandigarh.
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| He also proposed to raise Rs 200 crore from the royalty of non-ferrous minerals through upward revision of rates of royalty and other measures. The rates would be formally notified by the department of industries. At present, the state is getting a small amount of royalty on non-ferrous minerals (sand, gravel, boulder, etc) and a part of the receipts is given to the concerned panchayats.
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| He added that these measures were likely to generate additional revenue of about Rs 410 crore per annum.
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| The finance minister also proposed to increase the tax on daily lotteries from Rs 25,000 to Rs 50,000. The proposed move will add Rs 60 crore to state exchequer.
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| “To meet the aspirations of the people of the state and mount a credible development effort, we have no choice but to raise additional resources, as the state is groaning under a huge debt burden,” said Badal.
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| “When our government demitted office in February 2002, the total debt of the state was only Rs 32,496 crore. Since then, the debt has increased rapidly and has reached Rs 47801 crore and by the end of the year 2006-07. The debt-GSDP ratio is hovering around 41 per cent, which is very high. The mounting debt stock has led to higher level of interest payments,” he said.
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| He also added that the government would follow a prudent debt management policy to keep the debt under control.
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| For the welfare of the weaker sections of society, the Finance minister made mandatory it for Cabinet ministers to contribute Rs. 1000 per month for the scheme and appealed to the Grade I, II and III officers to contribute. He said if everything went according to plan, this would add another Rs 13 crore to the state.
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| Besides imposing new taxes, Badal also proposed some tax concessions. He reduced the basic stamp duty rate from 6 per cent to 5 per cent.
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| He also proposed to abolish value-added tax on snuff (naswar), which is a cottage industry product and fast losing its importance due to the availability of better alternative allopathic medicines.
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| At present, 12.5 per cent VAT is levied on this product. It is estimated that this will result in a revenue loss of Rs 12 lakh per annum. |
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