Gujarat govt delivers election-safe budget
Ahead of the assembly elections in December, Gujarat Deputy Chief Minister Nitin Patel, who also holds the finance portfolio, delivered a budget for 2017-18 that looked to appease all sections of the society, while keeping its finances intact.
Amidst recent agitations over unemployment as well as criticism over favouritism towards large industries, the state budget saw higher allocation being made towards education, youths, health, micro, small and medium enterprises (MSMEs) and infrastructure. Resultantly, the budget was prepared on the theme of 'optimum inclusive development of human resources and trunk infrastructure through effective and transparent implementation',
A first by chief minister Vijay Rupani-led government, the budget size stood at ~1.72 lakh crore for FY 2017-18, up by ~20,327 crore as against last year, along with surplus estimates of ~521.3 crore. Education saw the highest allocation of ~25000 crore, followed by tribal development at ~14560 crore and urban development and urban housing at ~11500 crore. Overall the social sectors allocation stood at 67.73 per cent of the total budget size as against 66.64 per cent last year.
In the revised estimates for the 2016-17 budget, Patel mentioned that as against the expected surplus of ~245.49 crore for the year 2016-17, the same was expected at ~1342.93 crore in the revised estimates due to net transactions.
For the year, 2017-18, total revenue expenditure is estimated at ~1,25,455.63 crore, while capital expenditure is estimated at ~45,376.34 crore. The revenue receipts are estimated at ~1,31,521.23 crore and the capital receipts are estimated at ~33,974.90 crore.
Ahead of the possible implementation of the goods and services tax (GST), Gujarat government chose to keep the the existing value added tax (VAT) unchanged. However, Patel announced that payment of taxes exceeding ~10,000 would be made mandatory through epayment.
Focusing on several social sector categories and schemes, Patel made special announcements for students in the state by offering cycles for 45,000 female students of class IX under Vidya Sadhna Yojana, free uniform and textbooks to over six million primary students and subsidised electronic tablets for about 350,000 first year college students. The government will also waive 100 per cent tuition fees for female medical students.
Having lost seats in the rural areas in the panchayat polls in December 2015, the state government looked to appease farmers and rural citizens. This was done from tax cut in tractors used for agricultural purposes to power subsidies.
Patel not only subsidised power to farmers with an allocation of ~4011 crore as well as ~400 crore for free power to village water works but also made allocation of ~5,100 crore to take Narmada water to Kutch region. Apart from providing assistance to install solar pump sets, the state government will also provide farm loans at the one per cent interest rates, which Patel maintained would be a big relief for farmers.