Madhya Pradesh Budget 2010-11
A. Rs 128 Cr Deficit Budget
B. Food Grains, Pulses, Sugar, Clothe Cheaper; Toothpaste, Tea, Coffee, Electricals & Electronics Costlier
C. Rs 2170 Cr for Agriculutre, Rs 2589 Cr for Infrastructure, Rs 3685 Cr for Villages and Rs 6009 Cr for Education
D. Professional Tax on Annual Income over Rs 3 Lakh
E. Employees to Get Two Installments of DA in Six Months
Presenting budget for 2010-11 in state assembly, finance minister Raghavji on Thursday announced reduction of interest rates on short term loans to farmers from the existing five to three percent and a rural road-building programme from the next financial year.
The minister, who presented a Rs 128-crore deficit budget, said that a relief of two percentage points would be given on short term farm loans, while items such as food grains, pulses, salt, sugar and flour will be continually exempted from value added tax (VAT) due to inflation.
However, entry tax on electrical and electronic equipments has been hiked up from one percent to two percent, making these items a bit costlier. These items are colour televisions, electronic toys, entertainment equipment, photocopy machines and other office equipment.
At the same time, Raghavji announced the launching of the “Mukhayamantri Gram Sadak Yojna” (Chief Minister’s rural road scheme) from next fiscal in villages which have population up to 500.
The budget provides 49.6 percent more for rural development, 104 percent more for urban infrastructure, 22 percent more for agricultural sector, 9.5 percent more for education and 13.8 percent more provision for health services, compared to the budget estimates for the current financial year.
The minister said that revenue losses, standing at Rs 3,167 crore in 2001-01, were likely to have a surplus of Rs 1,698 crore in 2009-10 and that revenue receipts were expected to be Rs.43,443 crore in 2010-11.
“This includes Rs 18,670 crore from state taxes, Rs 11,047 crore as share of Madhya Pradesh in central taxes and an assistance of Rs 9,403 crore from the union government,” he said.
Talking to reporters later, he said that state’s income from revenue in 2009-10 is higher than projected in the last year’s budget and stressed that all departments spend spend the money allocated to them under different schemes.
“The revenue receipts for the year 2009-10 were more than the projected revenue collection in the last year’s budget,” he added.
In response to a query, the minister said that the state has a loan of Rs 47,280 crore till March 31, 2009, which has now rose to Rs 56,250 crore.
He said that as compared to the year 2001-02, when 20 per cent interest was paid on the loans, the state government now pays only 11.63 per cent interest on borrowings.
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