Amid slowing growth in the countrys most industrialised state and the prospect of an acute farm crisis,Maharashtras Deputy Chief Minister and Finance Minister Ajit Pawar presented his Budget estimates for the state for 2012-13,anticipating a small revenue surplus of Rs 152.49 crore. Despite expectation that there would be significantly higher taxes that impact the higher income groups alone,Pawar made only cautious proposals with a view to mop up additional revenue.
The one contentious proposal was a 5 per cent increase in tax on LPG cylinders for home use. Legislators including Congressmen promptly called for a rollback.
In the wake of allegations of fiscal indiscipline,the Finance Minister laid the blame for the revised estimates of Budget 2011-12 showing a Rs 2,058.71-crore revenue deficit instead of the Rs 58.21-crore surplus estimated in last years Budget speech on the Rs 2,000-crore farm aid package announced during the winter session of the legislature.