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The Vijay Rupani-led BJP government in Gujarat tried to reach out to the disgruntled youth with special focus on education and employment in its first State Budget after forming the government last December.
Finance Minister and Deputy Chief Minister Nitin Patel presented the Budget for 2018-19 with an overall size of ₹1,83,666 crore having estimated surplus of ₹889.34 crore and revenue surplus of ₹5,998 crore.
The Budget, which was presented in the State Assembly on Tuesday, is seventh surplus Budget in a row by the BJP.
Revenue receipts
The revenue receipts of ₹1,40,631 crore have been estimated for 2018-19 (Budget estimates) as compared to ₹1,31,550 crore for 2017-18 (revised estimates). Tax revenues are estimated at ₹1,13,035 crore, while non-tax revenues are estimated at ₹11,705 crore.
While Patel did not impose new taxes in the surplus-Budget, he announced fresh levy as well as revision of existing ones on imported liquor under the government's prohibition policy.
“The decision was to bring in additional revenue for the State exchequer in 2018-19, thereby enhancing the surplus. For the first time since 1999-2000, Gujarat government announced revision of excise duty, transportation fees and special fees on foreign liquor as per the policy implemented under Gujarat Prohibition Act, 1949,” said Patel addressing the house here.
Duty on liquor
Excise duty on spirit has been revised from ₹100 per proof litre to ₹300 per proof litre, while that on beer and wine has been hiked from ₹25 and ₹100 per proof litre to ₹60 and ₹300 per proof litre respectively.
The three categories of liquor, including spirit, wine and beer, have seen revision in transportation fee from ₹2, ₹1 and ₹ 0.50 per bulk litre to ₹10, ₹5 and ₹5 per bulk litre, respectively. Also, the special fee for liquor has been revised. The revised rates on liquor will bring revenues of ₹106.32 crore during the year.
Commenting on the condition of the State economy, Patel informed the house that the fiscal deficit, which was 2.24 per cent of Gross State Domestic Product (GSDP) in 2015-16 has reduced to a record low of 1.42 per cent of GSDP during 2016-17. The same has been estimated at 1.71 per cent of GSPD for 2018-19, which is well within the 3 per cent ceiling prescribed under FRBM Act, Patel stated.
Public debt
State’s public debt has been estimated at 15.96 per cent of GSDP for the fiscal 2018-19 as compared to 16.46 per cent of GSDP for revised estimates of 2017-18. The State government has estimated GSDP growth (at current prices) of 14 per cent for 2017-18 at ₹13,20,167 crore (advance estimates), as against ₹11,58,151 crore (quick estimates) for 2016-17. According to Patel, State’s public debt hovers around ₹1,90,000 crore.
Addressing a press conference after the Budget presentation, Patel stated that the developmental expenditure of the State is planned at ₹1,11,565 crore, of which more than 57 per cent has been allocated towards social services.
For employment generation, the Budget provides ₹785 crore, in addition to ₹271.66 crore for the Mukhyamantri apprenticeship scheme for diploma holders.
Education, top focus
Education was the topmost focus area in the Budget getting maximum allocation of ₹27,500 crore followed by irrigation at ₹14,895 crore for Water resources, Narmada canal and Kalpsar scheme.
The Urban Development area got ₹12,500 crore for new roads and smart city infrastructure projects, whereas health was given ₹9,700 crore followed by energy at ₹8,500 crore allocation. Ironically, agriculture, which faced a tough time last year amid climatic adversities and falling agri-produce prices, got allocation of ₹6,755 crore.
Among the noticeable announcements, the State government announced new 1.22 lakh agriculture power connections with a provision of ₹1,921 crore. Also it plans to expand the transmission network by increasing the power cable length by 2,557 circuit kilometeers along with 100 power sub-stations at the overall allocation of ₹2,757 crore.
Prime Minister Narendra Modi's ambitious civil aviation project for seaplane has found a mention in Patel’s Budget speech with a provision of ₹30 crore besides development of new airports.
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