Gujarat unveils farm-friendly Budget
Revises liquor fee after 18 years
The Bharatiya Janata Party (BJP) government in Gujarat on Wednesday announced a farm-friendly Budget for 201819 that also aims to address issues such as unemployment and the ongoing water crisis.
Tax revenues for April 2017 to January 2018, first 10 months of the financial year, grew 21 per cent. Deputy Chief Minister and Finance Minister Nitin Patel announced a fresh levy, as well as a revision of the excise duty and other charges on foreign liquor.
On the back of buoyancy in revenue receipts in 2017-18, the budget size for next year was revised to ~1,837 billion, up from ~1,722 billion for the current year, Patel said. He said the surplus according to Budget Estimates was ~7.83 billion which has gone up to ~8.89 billion on the back of the proposed increase in prohibition rates.
“Our policies are geared towards inclusive development. The revenue surplus increased from ~17 billion during 2015-16 to ~59 billion during 2016-17. This surplus has been used for developmental capital expenditure. In addition, the fiscal deficit, 2.24 per cent of gross state domestic product (GSDP) in 2015-16, has come down to a record low of 1.42 per cent of GSDP during 2016-17,” Patel said, while presenting the state Budget.
Against an expected surplus of ~13 billion in 2016-17, the accounts indicate a surplus of ~1.27 billion. The expected surplus of ~2.39 billion for 201718 increased to ~10.52 billion in the Revised Estimate (RE). On estimates for 2018-19, Patel said the government expected a surplus of ~7.83 billion.
The BJP had in the legislative Assembly election lost several seats in the agrarian belt of Saurashtra. It also had to face the Patidar agitation. These were attributed to farm distress and disenchantment among youth. The outlay for agriculture, farmer welfare and co-operation was ~67.55 billion, of which ~11.01 billion went towards a crop insurance scheme in the wake of floods and erratic monsoon in 2017.
The outlay for youth employment was ~7.85 billion, while labour and employment was allotted ~17.32 billion. Education saw one of the highest allocation of ~275 billion, focusing on mid-day meals, girl child education and distribution of electronic tablets. Health and family welfare attracted ~97.5 billion, while women and child welfare saw an allocation of ~30.7 billion.
The water crisis, which curbed supply for most purposes, led to allocation of nearly ~149 billion. Of the ~44.10 billion for industries and mines, ~8.43 billion was for assistance in capital investment made by the micro, small and medium enterprises (MSMEs), apart from ~4.5 billion for cottage industries. Dholera Special Investment Region got a provision of ~2.80 billion.
The Metro rail project in Ahmedabad, the first phase of which is under construction, saw a provision of ~5.92 billion, while the Smart City Mission for six cities got ~5.97 billion. The upcoming Diamond Dream City in Surat got ~300 million.
The state has for the first time since 1999-2000 revised excise duty, transportation fees and special fees on foreign liquor.
The three categories of liquor — spirit, wine and beer — have seen revisions in transportation fee from ~2, ~1 and ~0.50 per bulk litre to ~10, ~5 and ~5 per bulk litre, respectively. Special fee for spirit, wine and beer has been revised from ~45, ~15 and ~5 per bulk litre to ~135, ~45 and ~15 per bulk litre, respectively. Patel also proposed a special fee on spirit, wine and beer being imported from outside India into Gujarat.