‘Manush’ focus in Mitra budget

The minister at the very outset saluted the ‘Ma-Mati-Manush’ of the state for what he felt was a “historic journey of bringing back hope,optimism and self-confidence” in the state. He then unfolded a budget where the focus was clearly on social infrastructure,rural development and panchayats,women and child development,education and youth welfare.

With an abundance of quotations from Ghalib to Swami Vivekananda and from Rabindranath Tagore to Kazi Nazrul Islam,Mitra’s statement was bullish on the state’s capacity at own resource mobilisation.

It pointed out that the state government made a remarkable achievement in mopping up Rs 31,000 crore revenue during 2012-13 — up from Rs 21,000 crore when the Left Front was dislodged. This additional Rs 11,000 crore of the state’s own revenue collection in just about two years of the new government was a hallmark of “dynamic paribartan” that is under way,said Mitra. For the 2013-14 fiscal,he projected an addition resource mobilisation of about 23 per cent in revenue.

Chief Minister Mamata Banerjee,sitting just behind the finance minister as he read out the 54-page budget statement,was engrossed in painting. She occasionally raised her head to welcome the announcements and again got down to her painting. Later,she said,“In a desert left behind by the Left,our finance minister has shown traces of green. He has done a commendable job.”

The finance minister said that the state continues to reel under the “crushing debt” burden and is bearing a repayment commitment of over Rs 25,000 crore. “The chief minister had at least 10 meetings at the highest levels of the central government to seek a way out of the crippling debt trap but nothing came out of those.”

While the finance minister did not elaborate on the fresh tax proposals,the additional revenue he talked about is likely to come from an increase of the “lower VAT” rate from 4 per cent to 5 per cent and also an increase of the “upper VAT” from 13.5 per cent to 14.5 per cent.

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Industry circles said the lower VAT increase of 1 per cent will impact the price line for over 320 items which are listed in the lower VAT bracket and would affect the pockets of millions. The items covered by the upper VAT are not too many and are generally high-priced items that might not affect the common man,it was learnt. Mitra,however,did not specify the additional revenue this would yield.

He also raised the tax rate for tobacco-related products and cigarettes from the existing 20 per cent to 25 per cent,saying it was a serious health hazard to the consumers and also that a large number of other states have done the same.

Industrial growth and rejuvenation of Bengal was evidently relegated in importance. While Rs 326 crore was allocated to micro and small enterprises with stress on cluster development of handloom,handicrafts and textiles units,the outlay for large and medium industries was pegged at Rs 540 crore. Though the budget statement indicated that investment proposals totalling Rs 1,12.769 crore were received by the state government,the Economic Review showed that the actual investment was not more than Rs 400 crore during 2012-13.

The highlights of the other budget proposals were :

z Financial support for unemployed youths under a scheme called “Yuba Utsaha Prakalpa.” The government will provide an allowance of Rs 1,500 to nearly 100,000 unemployed youths who have registered their names in employment banks.

z The government claimed to have generated employment of 10,24,521 during 2012-13 and proposed to increase it to 13,14,000. But the government was not clear in defining “employment generation” and “new job” creation.

zUnder the “Kanyashree” scheme,unmarried girls between 13-18 years of age and whose family income is less than Rs 50,000 will get Rs 500 per annum and a lump sum incentive of Rs 25,000 on completion of formal school or vocational training.

z“Amar Thikana” and “Gitanjali” schemes,under which funds have been released to construct 34,000 rural houses and 1,328 flats in semi-urban areas to provide affordable housing to BPL,EWS,Backward Classes and Minorities.

zAccredited Social Health Activists (ASHA) members will get a monthly fixed honorarium of Rs 1,300 in addition to performance-based remuneration for each ASHA.

z School education received the highest allocation of Rs 3,203 crore during 2013-14 fiscal with massive augmentation and upgradation of existing schools,drinking water,toilet facilities and new buildings.

z Finally,the panchayat and rural development sector proposed to spend Rs 4,000 crore on MGNREGA,up from Rs 3,000 spent during the current fiscal.

While Congress Legislature Party leader Manash Bhunia said most of the schemes announced by Mitra would be financed by the central government,the CPM’s Surya Kanta Mishra described the budget as one “without any direction.”

How it will affect us

The ‘Lower VAT’ rate hike from 4% to 5% will result in higher prices of 302 commodities. Many of them are items of everyday use,such as:

n Bricks

n Toys

n Utensils

n Drugs and medicines

n Medical diagnostic kits

n Bicycles,tricycles and cycle rickshaws

n Biscuits

n Candles

n Castor oil

n Caustic soda

n Chemical fertilisers

n Dry fruit

n Note books

n Hosiery products

n Beedi leaves

n Tobacoo products

( hike from 20% to 25%)

The ‘Upper VAT’ rate hike will hike the prices of relatively high-end commodities such as:

n Air conditioner

n Motor car,price of which exceeds Rs 1 lakh

n Television over Rs 20,000

n Mobile phone of any type over Rs 20,000

n Watches over Rs 15,000