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Tabling proposals in his first full-fledged Budget (2015-16) in the Vidhan Sabha here on Tuesday, Gujarat Finance Minister Saurabh Patel levied 5 per cent VATon technical textiles to net additional revenue of Rs 80 crore.
"All other states have taxed technical textiles. So far, we had given them sufficient time to grow. Now they are big enough and can be covered under the tax net," Patel said addressing media after the Budget speech.
Apparently, to support the social sectors, the state government has taxed technical textiles. Other than that, no new taxes were levied in the first full-fledged budget of the Anandiben Patel government.
The Rs 1,39,139-crore budget is estimated to have an overall surplus of Rs 125 crore and revenue surplus of Rs 7,308 crore. The budget allocations focused on social sector, with about 56 per cent of the total Rs 96,944 crore of developmental spend being allocated to it, followed by infrastructure sector with 46 per cent.
However, Patel also announced tax relief to the tune of Rs 20 crore including reduction of VAT on Aviation Turbine Fuel (ATF) from 30 per cent to five per cent for cities other than Ahmedabad and Vadodara, and tax exemption for oral contraceptive pills, isabgul and isabgul husk, besides reduction in tax for imitation jewellery.
On the state finances, the minister maintained that fiscal deficit is 2.24 per cent of the GSDP, which is below the permissible limit of 3 per cent under the Fiscal Responsibility and Budget Management (FRBM). Public debt is estimated at Rs 24,852 crore for the year 2015-16, the minister informed.
New infra projects
For the first time, the state government has announced to set up a joint-sector company with Central government to set up regional rail connectivity in the state. An allocation of Rs 10 crore has been made for the proposed project, which will connect 38 stations including main cities of the state with nearby towns. "This will be carried out in the partnership with Rail Vikas Nigam of the Government of India," he said.
Also, the state has proposed Rs 10 crore allocation for formation of the Island Development Authority to explore tourism and security potential of the islands along the Gujarat coastline.
By allocating Rs 1,100 crore in the annual budget, the state is also planning to set up 200,000 affordable houses in a year under the Mukhyamantri Gruh Yojana.
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