A ceiling of Rs 1,000 on stamp duty on debt instruments and a reduction in the threshold limit for value-added tax from Rs 50 lakh to Rs 40 lakh are among the measures proposed in the Maharashtra budget, presented yesterday. The budget leaves a shortfall of Rs 46.29 crore uncovered for the year 1998-99.
The budget, presented by finance minister Mahadeo Shivankar, proposes resource mobilisation measures to mop up Rs 600 crore. This is expected to reduce the total deficit from Rs 846.29 crore to Rs 246.29 crore. Another Rs 200 crore is proposed to be raised through gearing up the tax collection machinery and implementing various economy measures.
The uncovered deficit has not put any restraint on the states plan size which, at Rs 11,600 crore for 1998-99, is the largest in India. The state plan has steadily increased by over 30 per cent every year since 1995, when the Shiv Sena-BJP government assumed power in Maharashtra.
The finance minister said though an uncovered deficit of Rs 88.48 crore was anticipated in 1997-98, the revised estimates revealed a surplus of Rs 597 crore largely due to prudent financial management, efforts for investment in small savings and better tax collection.
