Gujarat Finance Minister Vajubhai Vala today presented the budget of Rs 80,694 crore for the 2011-12 financial year,projecting a revenue surplus of Rs 443.44 crore and a fiscal deficit of Rs 14,279 crore.
The budget size has shot up by Rs 11,129 crore as compared to last years Rs 69,565 crore,showing an increase of 16 per cent.
Vala,in his 17th budget tabled in the state assembly,today proposed to increase the Value Added Tax (VAT) on tobacco and related products,mobile phones and also to levy green cess on per unit generation of all kinds of electric energy,including captive energy.
VAT on tobacco products has been increased from 20 per cent to 25 per cent while that on mobiles has been increased from 5 per cent to 15 per cent.
The Government will charge two paise per unit on generation of all kinds of electrical energy,including captive energy,but excluding solar,wind,bio,geo-thermal,tidal and hydal energy. The amount collected from the green cess will be used for setting up Green Energy fund.
The government experts hope to mop up Rs 524 crore by the levy of new taxes and green cess, Vala said.
Thrust of the budget were social sector development,urban infrastructure and power sector.
The social sector continues to get major focus in the development plans of the government with a total outlay of Rs 14,814 crore,(which is) 39.87 per cent of the total plan allocation, Vala said.
The allocation in power and infrastructure has been increased from Rs 5,187 crore to Rs 5,839 crore in 2011-12,a rise of 12.55 per cent,he said.
Besides,the urban infrastructure has got a boost with allocation of Rs 3,030 crore,Vala said.
The allocation for Sardar Sarovar project,a mega irrigation scheme,has been doubled from Rs 3,500 crore to Rs 7,000 crore,Vala said in his budget speech.
However,public debt of the state government is expected to increase up to Rs 21,394 crore in 2011-12,including market borrowing through sale of state securities,against an estimated Rs 19,182 crore in the last fiscal.
The State Domestic Product (SDP),a measure in monetary terms of volume of all goods and services produced in the state,at current prices,is projected to be Rs 5.88 lakh crore in 2011-12,up from Rs 5.14 lakh crore in 2010-11,Vala said.
Reaffirming states commitment to decentralise planning and to empower people,the government has proposed to launch a new scheme Aapano Taluko Vibrant Taluko,for which a Rs 2,700 crore provision has been made for over four-year period.
To meet the requirements of growing urbanisation,a provision of Rs 50 crore for the share capital of the company ‘Metro Link Express for Gandhinagar and Ahmedabad(MEGA) for constructing metro railway line has been made,Vala said.
A provision of Rs 425 crore has also been made for purchasing 3,000 buses to improve road transportation,he said.
Besides,a provision of Rs 296 crore has been made to start Roll-On-Roll-Off (ferry service) to cross the gulf of Cambay from Ghogha in Bhavnagar to Dahej in South Gujarat.
A provision of Rs 4,848 crore has been made for the Vanbandhu Kalyan Yojana under tribal area sub-plan.
The revenue receipts of state (taxes and non-taxes) in the budget 2011-12 have been estimated at Rs 59,885.75 crore,as against Rs 52,453.64 in last fiscal,an increase of 21 per cent.
The total state taxes as per budgetary estimates are expected to grow by 29 per cent at Rs 39,046 crore,as against Rs 30,261 crore in last fiscal.
As per the budgetary estimate,the annual plan expenditure for 2011-12 went up by 23.86 per cent to Rs 37,153 crore as against plan size of Rs 30,000 crore in the last fiscal.