Shillong, March 19: Chief minister Mukul Sangma today presented a deficit budget of Rs 382 crore for 2012-13 in the Assembly with new tax proposals to mobilise additional resources of Rs 12 crore.
Presenting the budget in the Assembly, the chief minister, who also holds the finance portfolio, said there was a reduction of Rs 37 crore this fiscal compared to the deficit budget of 2011-12.
Excluding borrowings and other liabilities, while the estimated total receipts for 2012-13 are Rs 6,999 crore, the estimated total expenditure is Rs 7,381, thereby resulting in the deficit budget of Rs 382 crore. The chief minister said to mobilise additional resources by way of enhancement of excise tax revenue, he has proposed an increase in the excise slab on Indian Made Foreign Liquor (IMFL) “with consequential increase in excise duty on ad valorem mode and the VAT component on liquor”.
In addition, the chief minister also proposed to effect appropriate enhancement in the rates of license fees related to excise.
The decision will be applicable for all categories of excise licences, he said.
“To infuse better consciousness about ill effects of tobacco on the health of people of the state and to further streamline the tax structure, I propose to increase the rate of VAT on tobacco and tobacco products from the existing rate of 12.5 per cent to 13.5 per cent,” he added.
However, another new element added under the tax net was beedi.
“Beedi was brought under the tax net by way of amendment of the appropriate schedule,” the chief minister said.
The finance department will work out the percentage of tax to be brought for beedi.
The chief minister added that he would take up the matter of raising the ceiling in the rate of professional tax with the Centre by way of amendment of Article 276 (2) of the Constitution.
“These measures are expected to generate additional revenue to the tune of Rs 12 crore,” Sangma said.
The estimated plan expenditure including the centrally sponsored schemes, central sectors schemes, those from North Eastern Council (NEC) and non-lapsable central pool of resources for 2012-13 is Rs 4,413 crore, which is an increase of 29 per cent over the current year’s estimate of Rs 3,430 crore.
“Inclusive of these schemes, I propose an outlay of Rs 747 crore for education, Rs 744 crore for PWD, Rs 723 crore for agriculture and allied sectors, Rs 301 crore for PHE, Rs 290 crore for power, Rs 282 crore for community and rural development and Rs 228 crore for health,” Sangma said.
According to the chief minister, the total non-plan expenditure for 2012-13 had been estimated at Rs 3,189 crore, an increase of 12 per cent from the budget estimate of 2011-12.
Interest payment during 2012-13 is estimated at Rs 336 crore and pension payment at Rs 226 crore.
The salary payment is estimated at around Rs 1,840 crore.
“I have proposed a non-plan budget of Rs 506 crore for education, Rs 50 crore for police, Rs 297 crore for PWD, Rs 228 crore for agriculture and allied sectors and Rs 170 crore for health,” Sangma added.