Rs 1,500 cr stimulus package for core sectors in Haryana

The announcement of Rs 1,500 crore stimulus package during the next two years, by undertaking specific infrastructure projects, was the highlight of the budget speech made by Haryana Finance Minister Birender Singh in Chandigarh today.

As expected, the budget was without any new tax proposals and reduction in the existing levies.

Singh proposed a budget of Rs 10,000 crore for 2009-10 and in addition to it, an outlay of Rs 1,195.62 crore for centrally-sponsored and other developmental schemes, taking the composite plan size to Rs 11,195.62 crore.

The minister proposed the withdrawal of house tax on self-occupied residential premises. The rate of value-added tax (VAT) on diesel has been reduced from 12 to 8.8 per cent.

Total exemption was proposed for pesticides, weedicides, certified and labelled seeds, LPG sold for domestic purposes, sanitary napkins and baby diapers, CLF lamps, tubes and chokes of energy efficient lights and goods sold through CSD canteens.

Taxes on buses owned by private schools will also be reduced, announced the minister. Singh proposed a budget with a revenue deficit of Rs 3,384 crore and fiscal deficit of Rs 8,557 crore.

He said the substantial increase in the fiscal deficit was due to the implementation of the recommendations of the Sixth Pay Commission with effect from January 1, 2006.