MP presents revenue surplus budget, for lower VAT on 40 items
Presenting a revenue surplus budget of Rs 5,587 crore for Madhya Pradesh, state Finance Minister Jayant Mallaiya Wednesday proposed reduction of VAT on 40 items saying MP is financially healthy and competent to repay loan and interests.
Bhopal: Presenting a revenue surplus budget of Rs 5,587 crore for Madhya Pradesh, state Finance Minister Jayant Mallaiya Wednesday proposed reduction of VAT on 40 items saying MP is financially healthy and competent to repay loan and interests.
"The state's revenue expenditure is expected to be Rs 1,08,834 lakh crore while it will earn a revenue of Rs 1,14,422 lakh crore, which means a revenue surplus of Rs 5,587 crore in 2015-16," Mallaiya said presenting his second and the BJP government's 12th budget in the state Assembly.
However, the revenue deficit for 2015-16 is expected to be at Rs 16,745 crore, which is 2.99 per cent of the state's GDP and well under the limits of Madhya Pradesh Rajkoshiya Uttardayitva Evam Budget Prabandhan Adhiniyam, 2005.
The budget specially focuses on 'Make in Madhya Pradesh' campaign launched by the state government for enhancing employment opportunities, skills, infrastructure, human resources and development.
The government has proposed to reduce value added tax (VAT) on 40 items to 5 per cent in 2015-16 from the present 13 per cent.
These include baby diapers, battery operated cars and rickshaws, gas geysers, school bags, calculators, liquid nitrogen, gas stoves, locks and keys, ladies bags, purses and vanity bags, induction stoves and aluminium composite panels.
For enhancing aviation activities in the state, the government has proposed to reduce VAT from 13 per cent to four per cent on aviation gas.
In order to generate more revenue, the Finance Minister has proposed to increase VAT of tobacco-free paan masala from 13 per cent to 27 per cent.
The government has also proposed to increase stamp fee on pistol/revolver licence to Rs 10,000 and on other weapons to Rs 2,000.
For the renewal of revolver/pistol licence, it will be Rs 5,000 and for other weapons Rs 1,000.