 "Saurabh Patel")
The budget size for 2016-17 stood at Rs 1,51,852 crore, including an annual development plan (ADP) of Rs 85,557.78 crore with overall surplus estimated at Rs 245 crore and a revenue surplus of Rs 3,236 crore.
For instance, a provision of Rs 375 crore was made for providing interest of only one per cent on loans of up to Rs 3 lakh for kharif crop by farmers. The move is expected to benefit 3.8 million farmers in the state. Also, a provision of Rs 495.67 crore has been made for providing crop insurance cover for farmers for kharif, rabi and commercial crops under Khedut Akasmat Vima Yojana.
Finance Minister Saurabh Patel said the government has granted a total tax waiver on bamboo and bamboo articles, pedal-rickshaws and cycle-rickshaws, mosquito nets, sanitary napkins, adult diapers and frozen semen. However, institutional purchase of luxury cars and SUVs priced at more than Rs 15 lakh and two-wheelers priced at over Rs 2.5 lakh would now attract tax rate of 20 per cent, as 15 per cent now.
To encourage the service sector and to accelerate employment opportunities at the Gujarat International Finance Tec-City (GIFT City) in Gandhinagar, the government announced exemption from payment of stamp duty for share broking transactions of share brokers who establish registered broking offices at GIFT City and trade from there.
For a smooth rollout of the Goods and Service Tax (GST), the state government also announced an amnesty scheme wherein outstanding dues up to 31 December 2015 under the Sales Tax Act, Value Added Tax Act, Motor Spirit Act and the Central Sales Tax Act will be covered under the scheme, apart from remittance of interest and penalty on full payment of outstanding principal tax amount, except in cases of tax evasion.
While, at provisions of Rs 40285.52 crore, social services saw the highest share of 47.08 per cent of the proposed annual development plan (ADP) of Rs 85,557.78 crore for the year 2016-17, irrigation and flood control formed 16.70 per cent for provisions of Rs 14294 crore, followed by transportation 9.31 per cent or Rs 7969 crore, energy 7.97 per cent or Rs 6823.82 crore and agriculture and allied activities 6.94 per cent or Rs 5940.08 crore, respectively.
The annual development plan rose by 7.89 per cent over the previous budget’s Rs 79,295.11 crore.
Patel said, “The state government is committed for creating conducive climate so that people can get the desired share of growth. Social sector gets the highest priority with an outlay of Rs 40,286 crore keeping in mind the overall objective of improving of human development index of the state.”
The state’s fiscal deficit comes to around 2.25 per cent of GSDP, which, according to Patel, was within the permissible FRBM limit of three per cent. Gujarat’s public debt stands at Rs 1,82,000 crore, and is likely to touch Rs 2,00,000 crore in 2016-17, Patel said.
“The state’s financial position is very stable. We continue to maintain our borrowing discipline and use it only when needed for development-related requirements,” Patel said.
Major focus has been laid in the state budget on increasing agricultural production, core road network, affordable housing, generate higher employment, expand access to education and health services, particularly to the deprived sections, greater investment in nutrition programs and strengthening infrastructure in irrigation, water supply, sanitation, urban and rural areas.
After drawing flak for slack in implementing the Food Security Act, the state government announced a provision of Rs 456 crore for providing food grains at fair price to Below Poverty Line (BPL) and Antyoday families of the state under which 1.6 million metric ton wheat and 330,000 metric ton rice have been distributed.
"To ensure food security to all, our government is making major changes in public distribution system from April 1, 2016, with the objective to make available food grain in good quantity and of good quality at affordable price to all to ensure respectable life of citizens. 35 kg food grains to Antyoday families as well as 5 kg food grains per person to other eligible families will be made available on monthly basis at affordable price. Wheat at the rate Rs 2 per kg and rice at the rate of Rs 3 per kg will be made available which will benefit almost 30 million citizens. A provision of Rs 456 crore for this purpose," Patel said in his budget speech.
An outlay of Rs. 9050 crore was allocated for the Sardar Sarovar project including drip irrigation.
In a first since formation of the state of Gujarat, the state government announced opening up of roughly 66,000 posts in one year, of which 20,400 posts have been planned in the education sector, 17,200 in police administration, 7,800 posts each in health and revenue sector, 1,600 posts in forest department, 1,200 posts in engineering cadre, 1100 posts in accounts cadre and 3,000 posts of junior clerks.
Among other things, a provision of Rs 1,806 crore was made for undertaking roads, drainage and allied infrastructural facilities on 2250 hectares of land in the first phase of the Dholera Special Investment Region (DSIR) which is anticipated to generate employment of 78,600. The state government also made a provision of Rs 70 crore for the upcoming Vibrant Gujarat Summit 2017.
A plan of Rs 125 crore towards contribution to capital was also made for the special purpose vehicle to execute Ahmedabad-Mumbai high speed corridor or bullet train set up jointly by central government and state governments of Gujarat and Maharashtra.
In a bid to increase power generation capacity, the government announced an expansion of 3,343 Mw in capacity to take up the total capacity to 27,949 Mw by 2019 from the current 24,606 Mw. In all, a total outlay of Rs 7,794 crore was made for energy and petrochemicals, which also included planning of an additional 250,000 new gas connections by next year and installation of 174 kms of gas pipelines in the state by Gujarat State Petronet Limited at the cost of Rs 660 crore.
Meanwhile, a provision of Rs 1066 crore was made for one of Prime Minister Narendra Modi's pet projects, Statue of Unity.
