Haryana budget: No major taxes

The Bhupender Singh Hooda-led Congress government is conscious of the upcoming Lok Sabha elections as Finance Minister Birender Singh presented the budget estimate for 2008-09 with a focus on social sectors sans new taxes.

Presenting the budget with a total plan size of Rs 6,650 crore in addition to an outlay of Rs 932.84 crore for Centrally sponsored schemes and other developmental plan schemes, he said that since Haryana achieved the targets of zero level of fiscal and revenue deficit, the state will get a debt relief of Rs 581.43 crore during 2005-10.

The Haryana budget proposed to allocate Rs 3,129.37 crore for the social sector (education, social justice and empowerment, women and child development, health services, welfare of SCs and BCs) and Rs 2471 crore for infrastructure: The power sector would get Rs 867 crore, irrigation Rs 790 crore, water supply and sanitation Rs 653 crore, roads and transport sector Rs 766 crore.

No major taxes have been imposed in the budget. In some items that would include toys excluding the battery-operated ones, electric and electronic toys, diapers and sanitary napkins, VAT has been slashed from 12.5 per cent to 4 per cent.

Tax relief has been extended on the chokes of the energy-efficient tube lights.

The finance minister also announced 1 per cent reduction on stamp duty (existing rate is 8 per cent in urban areas and 6 per cent in rural areas) and the 2-per cent concession for property registered in women's name would continue.

The finance minister has earmarked a sum of Rs 1,550 crore in order to implement the recommendations of the Sixth Pay Commission that is expected shortly, he said.

Explaining the fiscal health of the state, he said the net borrowings of the state government decreased from Rs 2,495.24 crore in 2003-04 to Rs 46.2 crore in 2007-08.

"We have set a target of Rs 14,292 crore as state tax revenue to be collected in 2008-09 against the Rs 12,251 crore in 2007-08 indicating an increase of 16.68 per cent," he said.

Talking to media on the sidelines of the budget presentation, he said that the focus was on social welfare (about 40 per cent of the plan size has been earmarked on health, education and welfare of weaker sections). The declining sex ratio (863/1,000) was of grave concern, he added.

He also evinced serious concern over the bugeoning power subsidy offered to the agriculture sector in Haryana (projected to be Rs 2,655 crore in 2008-09). He agreed to putting a cap on this.