No fresh taxes in Raman's budget

Chhattisgarh Chief Minister Dr Raman Singh today presented the annual budget for the financial year 2009-10 with no fresh taxes and or additional taxes in a budget with a deficit of Rs 1185 crore.

“Despite the economic slowdown, the state government has made its commitment to the poor people and has bestowed top priority to safeguard their interest in line with the electoral promises made during the recent assembly elections,” Dr Singh, who holds the finance portfolio, said while presenting the first budget of his second term in the state assembly. With a 13 per cent increase in plan expenditure, the plan outlay for the fiscal 2009-10 was Rs 12,172 crore, or about 55 per cent of total budget outlay of Rs 22211 crore. Non-plan expenditure was contained at 45 per cent of total expenditure despite the sixth pay commission load. The state expected growth of 11 per cent in tax and 36 per cent in non- tax revenue. For the fourth year in a row, there was a revenue surplus in the budget with revenue receipts exceeding revenue expenditure by Rs 806 crore. The budget estimate of Rs 22211 crore was 12.5 per cent higher than the current year’s revised estimate of Rs. 19,746 crore. The net budget deficit was Rs 287 crore and taking into account the cumulative deficits, the budget deficit was estimated at Rs 1185 crore.

Gross Fiscal deficit was estimated at Rs 2 564 crore, well within the target set under the Fiscal Responsibility and Budget Management Act. About 33 per cent of the total plan expenditure was earmarked for the tribal sub-plan and 12 per cent for the scheduled caste sub-plan. Social sector outlay was increased by 19 per cent to Rs 9991 crore, or 45 per cent of total expenditure. This included 16 per cent outlay for education, 4 per cent for health, 6.5 per cent for food security, 5 per cent for SC/ST welfare and 2 per cent for drinking water. Implementation of the sixth pay commission recommendation for state government employees would cost the exchequer Rs 1000 crore and this provision was made in the budget.