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| Haryana Budget announces VAT surcharge to fund local bodies |
| BS Reporter / New Delhi/ Chandigarh Mar 11, 2010, 00:52 IST |
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Haryana Finance Minister Captain Ajay Singh Yadav presented his maiden budget in the Assembly with a total outlay of Rs 33,600 crore - Rs 10,500 crore in plan outlay and Rs 23,100 crore in non-plan outlay.
The revenue deficit has been projected at Rs 3,941.81 crore for 2010-11. The fiscal deficit is estimated at 3.59 per cent of GSDP in 2010-11, which is within the prescribed limit of four per cent, the finance minister said.
The main constituents of the deficit spending were Rs 2,600 crore burden of salaries, Rs 1,570 crore of arrears (due to implementation of the Sixth Pay Commission recommendations), Rs 2,900 crore of power subsidy, Rs 2,000 crore of urban development charges and Rs 300 crore of mining fee.
Keeping infrastructure development as the focus of budgetary allocation, the finance minister allocated Rs 4,642.71 crore to the power sector, Rs 1,142 crore to the transport sector, Rs 1,616.49 crore to the irrigation sector, Rs 1,297.69 crore to the water supply and sanitation and Rs 1,447.14 crore to urban development. In order to facilitate urban local bodies with better fund mobilisation, the state has imposed a surcharge of 0.25 per cent to 0.7 per cent on different value-added tax slabs.
According to the finance minister, out of the total collections from the surcharge, 80 per cent would be given to the urban local bodies and 20 per cent would be given to the village panchayats.
The surcharge on VAT would provide the state an additional revenue of Rs 300 crore.
An allocation of Rs 713.79 crore has been made under the stimulus package for the projects involving construction and repair of institutional buildings.
The agriculture and allied sector, which contributes 19.8 per cent of the Gross State Domestic Product (GSDP), has been allocated Rs 1,073.62 crore.
The state economy registered a growth of 18.4 per cent in the GSDP over the previous year at current prices.
The state got a cushion in the form of greater devolution of funds under the 13th Finance Commission, which revised the figure from Rs 8040.44 crore to Rs 19,470 crore this year over the previous year.
The budget has proposed a thrust on the synergy between the private and government sectors for the improvement in physical and social infrastructure.
The finance minister proposed to set up the Haryana Infrastructure Development Board as a nodal agency for conceptualization, financing, implementation, maintenance and operation of PPP projects in the state and also as a special purpose vehicle to take up major infrastructure projects funded out of state resources and other levies and charges.
An express corridor at a cost of about Rs 2,000 crore under the PPP mode with a mixed model of BOT (toll) and BOT (annuity) to provide access to the hinterland has also been proposed.
The finance minister also proposed a joint venture company with Delhi Metro Rail Corporation for linking more parts of Haryana in the NCR with the national capital.
The finance minister also proposed to formulate a policy for engaging the voluntary and NGO sectors as development partners for faster implementation and transparency in social sector projects.
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