All inclusive Maharashtra budget lacks clarity, foresight

Deputy Chief Minister Ajit Pawar presented his maiden, an Rs 58-crore surplus budget in the Legislative Assembly amid slogan shouting by the Opposition members last week.

While hiking taxes on soft drinks and liquor, food grain and essential commodities have been exempted this Budget, with the Finance Minister announcing the Krishi Sanjeevani ojna 2011 for farmers. The scheme allows the waiving off of interest and penalties of farmers who pay in full the outstanding principal amount as of a specified cut- off date. Also, farmers can avail interest free loan up to Rs 50,000 and a mere 2 per cent interest would be charged for a loan of Rs 3,00,000 (three lakh). Over 2.2 million farmers are expected to benefit from the scheme. The minister also offered concessions in power charges and has promise adequate measures for water reservoirs.

According to Pawar, in 2010- 11, the revenue receipts were Rs 1,07,159 crore as against Rs 86,910 crore in 2009- 10, registering a 23.3 per cent increase. There was also 26 per cent increase in Sales Tax mop up in 2010- 11 and 31 per cent rise in stamp duty collections. The minister also said he has not increased sales tax rates like some other states have done, yet sales tax receipts registered an increase.

In 2011- 12, revenue receipts are expected at Rs 1,21,503 crore while the revenue expenditure stands at Rs 1,21,445 crore. Pawar said revenue deficit is proposed to be eliminated for coming fiscal and a marginal revenue surplus of Rs 58 crore expected during the period.

Considering the trend of revenue collection during the year, revised estimates of revenue receipts were fixed at Rs 1,07,159 crore.

Though the regional media welcomed the so called " all inclusive budget", it was critical about it as well. 'Maharashtra Times' in its editorial appreciated the State budget, calling it an all inclusive budget taking care of all the sections of the society, including poorest of poor to the elite class, thus ensuring that the tax burden is not much on the ' aam admi'. Though it looks good on paper, whether it will achieves its objective remains to be seen, it remarked.

Referring Pawar's claim as naïve, Loksatta in its editorial was skeptical about the FM's claim of Rs 58 crore surplus amount, remarking that given the State's debt burden at Rs 2.09 lakh crore set to touch Rs 2.31 lakh crore by the financial year 2011- 2012, it wondered if the State expected to earn this amount only from Sales Tax.

While appreciating the budget, Sakaal too was apprehensive of the surplus money, saying the budget lacked clarity, Lokmat referred to it as an " unrealistic" one. Analysing the budget ' Navshakti' referred to it as being a disappointing one lacking vision as well.

Further, the regional media equivocally appreciated the government's decision of suspending 405 State employees from the agriculture department for misappropriating the relief package for distressed farmers in the Vidarbha.