No new taxes proposed in Kashmir budget

Jammu and Kashmir Finance Minister Abdul Rahim Rather Thursday presented "tax-free" and "pro-people" budget for 2014-2015, terming it one which reflected the Omar Abdullah government's intention to improve the state's finances.

Rather also observed that it was the second time in the history of the state that six consecutive budgets have been presented by the same government.

He said the state government has improved the tax and VAT remittances, resulting in more revenue.

"VAT remittances in the state in the last five years increased from Rs.1,836 crore to Rs.4,800 crore for the current fiscal which shows a cumulative increase of 161 percent," he said,

Rather added that despite limited financial resources and multiple problems in the state, efforts have been made to provide succour to various sectors including trade, industry, tourism and farming.

The budget showed a total expenditure of Rs.43,543 crore with a capital component of Rs.10,595 crore. The budget envisaged the estimated tax revenue of Rs.7,496 crore and share of central taxes to be Rs.5,191 crore.

The budget also provided for a central non-plan grant of Rs.2,096 crores and projects the revenue expenditure at Rs.32,948 crore.

The size of next year's annual plan would be of Rs.11,300 crore with the prime minister's reconstruction plan component of Rs.600 crore.

Total revenue increased significantly from Rs.2,683 crore in 2008-2009 to Rs.6,700 crore in the current fiscal, recording an annual increase of 30 percent, said Rather. Non-tax revenue which stood at Rs.837 crore in 2008-2009 increased to Rs.2,160 crore, he said.