West Bengal rolls out sops, sans new taxes

Ahead of panchayat elections in West Bengal, state Finance Minister Amit Mitra presented a Budget with increased focus on welfare schemes but without raising tax rates.

Under the goods and services tax (GST) regime, the state’s own tax revenue increased by around 10 per cent in 2017-18 to ~501 billion; the target had been ~558 billion. Total revenue receipts rose 13 per cent to ~1,330 billion. Mitra said against ~18.5 billion in receivables so far under the Integrated GST, the Centre was yet to release ~10 billion for the state.

Total debt increased to ~3,640 billion and is expected to be ~3,948 billion at the end of the next financial year. Loan repayment was ~472 billion, almost equal to the state’s own tax collection of about ~500 billion.

Among the sops is reduction of stamp duty by one per cent in rural and urban areas on property values up to ~10 million, full exemption to tea gardens from payment of agricultural income tax for the next two financial years, exemption from education and rural employment cess to tea gardens in the next financial year and exemption of mutation fees for farmers.

Monthly pension to farmers was raised from ~750 to ~1,000. Monthly payment under the girl education scheme, Kanyashree, was also raised from ~750 to ~1,000. In addition, the government will provide ~25,000 as one-time assistance to girls for marriage in families with annual income less than ~150,000. And, a new monthly pension of ~1,000 to disabled persons.

Total expenditure for 2017-18 is ~1,860 billion, a rise of 18 per cent. In 2018-19, this is expected to rise to ~1,958 billion, about 5.3 per cent higher. The fiscal deficit this year is pegged at ~270 billion, against ~254 billion last year.

Gross State Domestic Product (GSDP) rose 11.46 per cent for 2017-18. The fiscal deficit to GSDP ratio remained 2.56 per cent, against 4.24 per cent in 201011. Revenue deficit to GSDP remained 1.62 per cent, against 3.75 per cent in 201011, according to the state Economic Review.

Chief Minister Mamata Banerjee also announced setting up of a ‘Silicon Valley Asia’ in the state. She said nearly 8.1 million new jobs were created in the past six years. Also, about 90 per cent of the state population had been getting foodgrain at subsidised rates.