WB plans additional resource mobilisation by raising VAT

West Bengal Finance Minister Amit Mitra in the budget for 2013-14 today increased lower and upper rates of VAT by one per cent each to mobilise additional resources.
Tax rates on tobacco-related products and cigarettes were also raised from 20 per cent to 25 per cent.
Mitra in his budget speech said the additional revenue which would be generated would help in developing social and physical infrastructure and spur economic growth through the Keynesian multiplier effect.
He said that the plan outlay proposed in the budget was Rs 26,674 crore, which was 14.13 per cent higher over last year.
He said that target for generating 'own tax' revenue was fixed at 22.77 per cent and deficit for the next year was estimated at Rs 8 crore.

The budget also increased the plan expenditure on MNREGA from Rs 3,000 crore to Rs 4,000 crore.
Health, school education and higher education sectors also saw higher outlays at Rs 1,260 crore, Rs 3,203 crore and Rs 270 crore.
The budget also focused on the development of minorities and backward classes.