TThe Bharatiya Janata Party-led government in Maharashtra presented its annual Budget for 2017-18 on Saturday, projecting a revenue deficit of Rs4,511 crore, up from Rs3,645 crore
in 2016-17. In his speech, state Finance Minister Sudhir Mungantiwar proposed to raise Rs396 crore through various tax proposals.
The proposals include increase in value-added tax (VAT) on liquor to 25.93 per cent, from 23.08 per cent, and rise in lottery tax on weekly lotteries to Rs1 lakh from Rs70,000.
The government, despite repeated demand from the BJP’s partner Shiv Sena and Opposition parties, refrained from making any proposal to waive crop loan in the state.
To encourage the unregistered dealers under the VAT Act to obtain registration, the state government has proposed exemption in interest and penalty for the unregistered period after the payment of tax. This will enable those dealers for the GST (goods and services tax) registration.
Late fee of Rs1,000 on payment of professional tax has been exempted. The Maharashtra government has also proposed to exempt sugarcane purchase tax worth Rs700 crore for 2015-16 and 2016-17. This will help sugar factories to use the money towards payment of fair and remunerative price to farmers. Essential commodities, including rice, wheat, pulses and their flour, will continue to get tax relief beyond March 31, 2017. The levy on geo-membrane for farm ponds, milk testing kit and soil testing kit will also not be imposed.
To promote aviation industry and tourism, the government has proposed to reduce VAT to 1 per cent, from 5 per cent, on aviation turbine fuel. This will be applicable for the proposed 10 airports to be developed under the regional connectivity scheme.
Card swap machines will be given a relief from 13.5 per cent VAT in order to promote cashless transactions under the Digital India project.
The finance minister, in his speech, reiterated the government’s commitment to protect the interest of the farmers and contribute its share when the Centre announces crop loan waiver at all-India level. The Opposition parties, demanding crop loan waiver, burnt the copies of Budget outside the legislature. Mungantiwar has proposed an allocation of Rs8,233 crore for the irrigation sector, against Rs7,500 crore in 2016-17, and Rs2,812 crore for 26 projects under the Pradhan Mantri Krishi Sinchayee Scheme.
The finance minister also announced the formation of special purpose vehicle, Maharashtra Infrastructure Development Company, to implement a slew of projects in the state. These projects, including metro and sea link, will require Rs1 lakh crore in the next five years. Funds will be raised through the use of excess land in the possession of various government departments.
 "Maharashtra tables budget for 2017-18 with revenue deficit at Rs 4,511 cr")
