CM Dhumal presents tax-free budget

In his 60-page budget speech,Dhumal took pains to explains how the BJP government had transformed the state’s economy despite tough fiscal position and the Centre’s step-motherly treatment,which included the premature withdrawal of the special industrial package.

Of the Rs 20,244-crore budget,Rs 6,285.10 crore will go in paying salaries and another Rs 2,784.13 crore on pensions. Rs 2,249.67 crore will be spent on interest payments. Against an expenditure of every Rs 100,only Rs 34.51 will be spent on development and welfare activities,said the CM.

The daily wages of government employees has been raised from Rs 120 to Rs 130 — this will also benefit more than four lakh workers under MNREGA. Moreover,social security pensions have been hiked from Rs 330 to Rs 400 per month. Pensioners above 80 years will get Rs 600 per month.

To deal with problem of drug menace,Dhumal announced an increase in VAT on cigarettes and other tobacco products from 16 to 18 per cent and from 9.75 per cent to 11 per cent on bidis.

He also came up with a large list of beneficiaries — ranging from the educated class to farmers and children of government employees — who will benefit from education loans. He proposed to provide the top 4,000 students of plus one class Aakash Tablet/laptop in order of merit as secured in Class X.

While the honorarium for chairpersons of zila parishads has been raised from Rs 3,500 to Rs 5,000,for vice-chairman,the hike has been from Rs 2,000 from Rs 1,500. There has also been cross the broad hike in the honorariums for the panchayat members and other office bearers beside a corresponding increase for the urban local bodies.

The CM also announced 10-year tax holidays for setting up hotels in the tribal and rural areas of the state,increased exemptions for tax payments for small entrepreneurs running dhabas and canteens upto Rs 5 lakh.

Dhumal also announced that the medical insurance scheme will cover journalists. While they can avail up to Rs 1.75 lakh in the form of free treatment,the corpus fund has been hiked from Rs 10 lakh to Rs 25 lakh. Newsprint has also been exempted from entry tax.

Budget hopeless,shows govt’s bankruptcy: Cong

Describing the Budget presented in the state Assembly by Chief Minister Prem Kumar Dhumal as hopeless,the Congress on Monday claimed that the BJP government has failed to fulfill the expectations of most sections of the state’s population. “The budget shows the bankruptcy of the government in managing its finances and giving a push to developments,” said CLP leader Vidya Stokes. She added: “In the last four years,the government has hardly done anything for the state’s progress. Now when elections are around the corner,BJP has realised the worth of the common man.”

Poor handling of macro economic scenario: CPM

The CPM state Secretariat on Monday termed the budget as poor handling of macro economic scenario in the state. “The effort has been to get rid of the public sector and further enhance the pace of neo liberalism through development models like the PPP in crucial sectors of transport and education,” said Secretariat member Tikender Singh Panwar.