Eye on 2016, Budget levies no taxes, focuses on social sector

In the Legislative Assembly, Chief Minister Mamata Banerjee described it as “people’s Budget” and a “gift to Maa, Maati, Manus”. “This is people’s Budget. This is the Budget of Maa Mati Manush. We have given tax reliefs, allotted funds for rural and urban development, for women and children. We have increased stipend for our Kanyashree girls from Rs 500 to Rs 750. We are giving cycles to 40 lakh students to make them self-sufficient.”

While it is a deficit Budget, the state is expected to fall short of its own tax revenue collection targets. Mitra said that according to his estimates, tax collection for the current fiscal will reach Rs 40,062 crore against the budgeted Rs 45,413 crore.

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Fiscal deficit has gone up substantially to Rs 23,881 crore for the current financial year while it was estimated at Rs 15,289 crore. However, in comparison to the last few years, the deficit will come down to around Rs 1,500 crore.

Tax collection, though projected to grow by 30 per cent, has actually grown by 12 per cent.

The decline is a result of a steep fall in revenue collection. Mitra claimed that entry tax will go up after the court settles the issue — 15 states, including Bengal, has moved court over the same.

The minister has estimated revenue collection for 2015-16 as Rs 46,500 crore, an increase of at least 16 per cent over the current fiscal.

Among the new initiatives taken for the social sector, especially for rural areas, the government will distribute cycles to 40 lakh students in two years, enhance scholarship under the Kanyashree scheme from Rs 500 to Rs 750 and provide financial assistance of Rs 10,000 to small and marginal farmers among others.
The allocation has increased considerably in departments like minority affairs, OBC, panchayat and rural development, irrigation and waterways, school education and municipal affairs.

For small and marginal farmers, Mitra has proposed a new scheme, under which, the state will provide financial assistance of Rs 10,000 per pump for installation of 10 lakh pumps across the state. At present, the total gross area under cultivation in Bengal is 65 lakh hectares, of which, 39 lakh hectares is under irrigation.

“Since we assumed office, we have increased our revenue collection every year. This is a model and Bengal is the only state that could do this,” said Mamata.

“In the last few years, we have simplified the process of paying tax and have been able to bring the small and big businessmen under the taxnet,” added Mitra.