• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

It has proposed to revive an ancient land revenue levy, which was imposed way back in 1850 under the Calcutta Land Revenue Act for Kolkata and Howrah.

The West Bengal Chief Minister, Mr Buddhadeb Bhattacharjee, (right) along with Dr Ashim Dasgupta, Finance Minister, at a meeting before Budget presentation in Kolkata on Thursday.

KOLKATA, March 20

AGAINST the backdrop of a severe financial crisis, the West Bengal Finance Minister, Dr Asim Dasgupta, today placed a Rs 793-crore deficit Budget in the Assembly, after introducing a host of revenue-earning measures like new taxes, liberalisation of liquor licence policy and one-time sales tax settlement scheme.

The total Budget size is of Rs 35,284 crore. After factoring in the expenditure and receipts proposals there was a primary deficit of Rs 1,618 crore. Dr Dasgupta introduced new streams of revenue earnings for mobilising Rs 825 crore. He ended with a deficit of Rs 793 crore compared to Rs 11 crore in 2002-03.

He said out of the Rs 825-crore fresh mobilisation, some Rs 500 crore alone would come from re-introduction of entry tax, a move severely criticised by all chambers of commerce. This tax was abolished in 1995 but the Minister said since the move did not have any impact on product prices, it was being re-imposed.

The State Government will earn Rs 100-crore additional revenue with its new policy on the issuing of liquor licences. It has also proposed to revive an ancient land revenue levy, which was imposed way back in 1850 under the Calcutta Land Revenue Act for Kolkata and Howrah.

Initially, it was only three annas per cottah but was never implemented. Now it would be Rs 200 per decimal for commercial establishments and Rs 45 per decimal for residential units. This move will generate Rs 150 crore. The State Government will enforce the Motor Vehicles Act more stringently and expects to generate Rs 75 crore more in 2003-04.

More items were also added on existing list of items under the West Bengal State Tax on Consumption or Use of Goods Act, 2001. These items are ATM machines, computer disks, power generators and gensets.

Moreover, it is also proposed to introduce service tax later in the year along with additional excise duty on sugar, tobacco and textiles. These two avenues are expected to generate Rs 200 crore each.

There was some good news for the tea industry as the agricultural income tax on tea was reduced from 45 per cent to 30 per cent. The Government has also reduced the interest charge on delayed payment of electricity duty from two per cent to one per cent.

In the current financial year, 2002-03, Dr Dasgupta claimed that the State Government had taken a number of measures to increase its tax income and as a result its growth rate of tax collection was 16.8 per cent. In 2003-04, he hopes to increase it to 29.8 per cent.

``Simultaneously, attempts will be made to curtail unproductive non-plan expenditure, contain the growth of salary bill within five per cent and that of pension within 10 per cent. Attempts will also be made to introduce a ceiling on the growth of subsidies. These apart, additional loan-availment by the Government will be reduced by Rs 3,200 crore in the current year'', he said.

The proportion of revenue deficit to revenue receipt has also been reduced over the years. From 91 per cent in 1999-2000, it was reduced to 58.5 per cent in 2002-03 and will be further reduced to 48.7 per cent next year. In 2004-05, it would be reduced to 43.9 per cent.

He said the fiscal deficit of Rs 793 crore was kept consciously to force the Union Government to go for a total debt restructuring of the State Governments. He hoped that the average State Domestic Product would increase from 7.6 per cent in 2002-03 to eight per cent in 2003-04.

In his speech, he mentioned that some seven lakh additional job would be created, of which 2.34 lakh jobs will come in the agricultural sector with improved irrigation, 3.44 lakh in the industrial sector (mostly in small and medium scale units) and 1.32 lakh in trade and services.

He dwelt at length on the ensuing value added tax (VAT) regime. According to him, the State Government would earn Rs 200 crore more from VAT once it is introduced after the formal signature from the President is received.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Solar Club seeks power sops

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line