Himachal budget: No new taxes, sops for farmers

HIMACHAL PRADESH Chief Minister Virbhadra Singh on Friday presented a Rs 35,783-crore budget, proposing no new taxes. He announced sops for farmers, unemployed youth, government employees,dailywagersandcontractual employees ahead of the elections later this year.

The 83-year-old sixth time Chief Minister, who created a record of sorts by delivering over four-hour budget speech, announcedars1,000monthlyunemploymentallowanceforyouths. Disabledunemployedyouthswill get Rs 1,500.

Singh proposed Rs 150 crore allocation for the scheme even as he said detailed guidelines for it will be worked out later. The allowancewasoneofthecongress’s election promises in 2012 that Singh had opposed till now.

Heannouncedcontinuationof a skill development allowance scheme that has benefited 1.50 lakh youths. He said he wanted to do more for youths and farmers but the state’s resources did not permit him. The state faces a Rs 2580.92-crore budget deficit and debt of Rs 40,000 crore.

Singh allocated Rs 9,628 crore for salaries, Rs 4,950 crore for pensions and Rs 3,500 crore for interest payments. A record Rs 3,105 crore has been sanctioned for loan repayments and Rs 2,311 crore and Rs 400 crore as expenditures on maintenance and other repayments.

This leaves 39.55 per cent funds for development. Singh announced four per cent additional interim allowance from August 2017 with an estimated liability of Rs 260 crore ahead of the implementation of the pay revision report for government employees and pensioners.

A three per cent dearness allowance would be paid to employees from July 2016.

Singh announced a Rs 10 lakh increase in the MLA local area development fund, raising the amount to Rs 1.10 crore, besides software technology parks in Shimla and Kangra.