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Regular-article-logo Sunday, 21 December 2025

Modi pinch & cheer

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OUR SPECIAL CORRESPONDENT Published 26.02.11, 12:00 AM

Patna, Feb. 25: Get ready to pay more for cars, TVs and also your daily detergent.

Bihar finance minister Sushil Kumar Modi today increased the existing tax of 12.5 per cent on these commodities to 13.5 per cent in his budget for 2010-11.

Modi projected a revenue surplus of Rs 6272.30 crore despite the state suffering from a severe drought spell and paying arrears in accordance with the sixth pay commission to employees.

The surplus would give the government financial muscle to spend more on infrastructure building and the social sectors.

“A new dawn has broken in the state which is now on the fast track to development,” Modi said.

The deputy chief minister said the government has increased taxes on motor vehicles, TVs, fridges, soaps, tobacco and cigarettes etc which would earn it an additional revenue of 450 crore, enabling it t to increase its investment in infrastructure and human resources.

Similarly, a luxury tax of 10 per cent has been imposed on the booking of hotels, conference halls, community centres, etc, while the government also proposed to hike export/import tax on beer, Indian/foreign liquor etc, Modi said.

The total revenue received is worth Rs 56,205.86 crore against the revenue expenditure of Rs 49933.56 crore. The surplus revenue (Rs 6272.30 crore) is almost 19 per cent more than that of the financial year 2010-11.

The state has registered a growth rate of 10.43 per cent in the last five years of NDA rule which was “remarkable” by all accounts, Modi said, given the “ramshackle financial structure and despondent legacy it inherited from its predecessor”.

The total plan outlay for the financial year 2011-12 is estimated to be worth Rs 24,000 crore against Rs 20,000 crore in 2010-11, an increase of 20 per cent.

The budget proposes to invest Rs 3356.32 crore in centrally sponsored schemes, indicating more allocations in almost all sectors — including education, health, roads and agriculture.

Modi also announced the introduction of the chief minister area development scheme in lieu of the scrapping of the legislators’ fund for local area development. “From now onwards the work will be carried out on the recommendation of the legislators under the new scheme,” he said.

Modi echoed chief minister Nitish Kumar on his stand against corruption, saying the state was in the process of achieving “zero tolerance” on corruption. The right to service bill aimed to check corruption at the local level would be tabled in the ongoing session of the House, Modi said.

Giving the sector-wise details of the money to be spent on different infrastructure projects, the finance minister said the government would build 13,500 kilometres of roads during 2011-12 at a cost of Rs 650 crore.

Similarly, more funds have been allocated for creating additional sources of irrigation, linking the rivers, completing the work on the Durgawati water reservoir, repairing the dams, canals and other water bodies to improve irrigation facilities.

The budget has made a plan outlay of Rs 3,014 crore to support various programmes for the school children. These programmes include literacy mission, mid-day meal scheme, chief minister’s scheme for giving cycles to the students, a scheme to encourage girl students and student uniform scheme.

Modi lamented that be it the flood or drought, the Centre did not come forward with the desired assistance to the state. Still the five years of NDA rule, he said, had brought the state out of the morass it was in.

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