Excelsior Correspondent
JAMMU, Mar 6: In a bold initiative, Finance Minister Abdul Rahim Rather today announced total ban on import, manufacturing, transportation, stocking and sale of chewable tobacco and products like pan, masala, gutka, khaini etc, increased rate of Value Added Tax (VAT) on cigarettes and related products including raw tobacco and brought more services under the tax net from next financial year.
Conceding the long pending demand of Panchayat members, Mr Rather proposed remuneration of Rs 2000 per month to all Sarpanchs and Rs 300 per sitting subject to a monthly ceiling of Rs 600 per month to all Panchs across the State. He also proposed revision of wages of daily rated workers from Rs 125 per day to Rs 150 per day. He kept a provision of Rs 700 crore for two Dearness Allowance installments to Government employees and pensioners and Rs 842 crore for installment of pay and pension arrears on account of Sixth Pay Commission.
Mr Rather announced the major decisions while presenting budget in the Legislative Assembly for 2013-14 and revised estimates for 2012-13. Minister of State for Finance Dr Manohar Lal Sharma simultaneously presented the budget in the Legislative Council.
In his 70 minutes budget speech read in Urdu, the Finance Minister reduced, exempted or extended exemption of VAT on various items while rationalizing tax structure on some products and extending hotel tariff concession plus VAT remission to industry for one more year i.e. up to March 31, 2014.
Presenting his fifth consecutive budget of National Conference-Congress coalition Government, Mr Rather, however, didn’t effect any hike in the prices of liquor, which has been resented by various sections of society. But, in another significant decision, he proposed financial assistance of Rs 30,000 to facilitate marriage of each orphan girl, who has attained the marriageable age, passed Matriculation and belonged to Below Poverty Line (BPL) family. He kept a provision of Rs 3 crore in the next year’s budget for the aid and made Social Welfare Department as the Nodal Department for disbursement of the funds.
Though the State’s annual plan was yet to be finalised, Mr Rather took into account Rs 8000 crore worth plan for 2013-14 and Rs 600 crore under Prime Minister’s Re-construction Plan (PMRP). During 2013-13, the State got Rs 7300 crore worth plan and Rs 700 crore under the PMRP. Rs 8000 crore worth plan for next fiscal year meant a 10 per cent step up over current year.
The budget proposals would come into force from April 1, 2013 after they were approved by the Legislature and the Appropriation bill was assented by the Governor.
Total budget for the next financial year would be worth Rs 38,068 crore as against current fiscal’s Rs 33,853 crore.
He pegged receipts and expenditure for next financial year at Rs 38068 crore, making it a zero deficit budget. Of Rs 38,068 crore worth budget, the Government has tentatively classified revenue expenditure as Rs 28,690 crore and capital expenditure at Rs 9378 crore. The non plan revenue expenditure was Rs 27,096 crore. The major chunk of budget i.e. Rs 17002 crore (about 46 per cent) would be spent on payment of salaries and pension including Rs 700 crore on two DA installments and Rs 783 crore grant-in-aid to autonomous bodies, which was also primarily aimed at meeting their salary expenses.
The Government has earmarked Rs 3579 crore for power purchase, Rs 3300 crore for payment of interests, Rs 215 crore for maintenance and repairs of assets and Rs 116 crore for honorarium to SPOs and VDCs.
During current year, the Government would spent Rs 14,700 crore on salaries and pension while in the next year the amount would go up to Rs 17002 crore. Of total budget of the State, nearly 51 per cent amount would be coming from the Centre. The State would also be getting 12 per cent amount of the budget as State’s share from Central taxes.
Mr Rather told the Excelsior after the budget that he was expecting Rs 100 crore from Additional Resources Mobilisation (ARMs) from the VAT increase on various items including cigarettes etc. He said economy of the State was growing at 7.01 per cent this financial year while it was expected to grow at 8 per cent during 2013-14 as against Union Government’s 6.5 per cent target of next fiscal year. For current financial year, the Central State Organisation (CSO) had projected the Centre’s economy to grow by 5 per cent only, which meant the State was well ahead of the Union Government in economic growth.
The Finance Minister said tax revenue of the State (generated from Commercial Taxes and Excise Department) have been projected at Rs 6700 crore during next financial year as against Rs 5400 crore during current fiscal. The increase of Rs 1300 crore in the tax revenue would be a massive achievement for the Government, he added.
In a major initiative to curb the menace of chewable tobacco, which was being considered as serious health hazard by the medical fraternity, Mr Rather proposed to impose a total ban on import, manufacturing, transportation, stocking and sale of chewable tobacco and products like pan, masala, gutka, khaini and other similar products, which contained chewable tobacco as one of the ingredients. He also proposed Rs 1 crore for launching information and education campaign against the habits of smoking and chewing tobacco.
He also proposed a healthy increase of 10 per cent VAT on raw tobacco, cigarettes and other related products.
With a view to widen the Service Tax base, Mr Rather proposed to bring three more Services under the tax net from next financial year, which included Services provided by authorized automobile service stations, property dealers/real estate agents and Consultants other than those already included in a Service covered by the J&K GST Act.
He proposed an increase of 50 per cent in the Government advertisement tariff to the print media, which would be effected from next financial year. For the purpose, the increase non plan budgetary allocation of the concerned Department from Rs 8 crore to Rs 12 crore. He also proposed additional allocation of Rs 2 crore in the current year to clear off the pending bills.
He offered insurance cover to the journalists working in the State and asked the fraternity to work out mutually acceptable participative scheme, which he promised to consider with an open mind.
Pointing out that he has already revised wage rates of daily rated workers engaged by the Government Departments, the Finance Minister proposed further revision of their wages from existing rate of Rs 125 per day to Rs 150 per day. He said he has kept a provision of Rs 700 crore in next year’s budgetary estimates for payment of two DA installments to Government employees and pensioners. Similarly, a provision of Rs 842 crore has been kept for payment of pay and pension revision arrears on account of Sixth Pay Commission.
Announcing Rs 2000 per month remuneration to Sarpanchs and Rs 300 per sitting subject to a monthly ceiling of Rs 600 per month to all Panchs, Mr Rather said the Government has adopted highest levels of remuneration and sitting fee for Sarpanchs and Panchs, which was applicable in one of the neighbouring State. He said the Government was also willing to consider an appropriate insurance cover for the Panchayat members and hoped that a workable solution will emerge shortly.
“Institution of Panchayati Raj will be further strengthened. While Rs 195 crore were available for devolution of Panchayats during current financial year, the amount has been further enhanced to Rs 231 crore for the next fiscal year. The Panchayats will also receive all requisite funds assessed between Rs 1300 crore to Rs 1500 crore for implementation of the schemes like MG-NREGA.
Asserting that last two summers in Kashmir and Ladakh and two full years in Jammu have witnessed a boom in arrival of tourists and yatris, Mr Rather extended existing hotel tariff tax concessions for one more financial year from April 1, 2013 onwards.
“I propose to extend present arrangement of VAT remission to the industry for one more year up to March 31, 2014 or till adoption of new GST regime by the State, whichever was earlier. These remissions had cost the State exchequer Rs 360 crore during the last year’’, he added.
He announced that the Government proposed to fill up 70,000 to 80,000 posts in the Government departments during next two years by fast tracking the recruitment process. In past four years, 50,000 youths have been given the Government jobs.
In a major relief to Public Sector Undertakings, Mr Rather announced that liabilities of some of the PSU employees, both serving and retired, amounting to Rs 95 crores by way of CPF contribution and gratuity etc would be cleared off by the Government in next two years. He also proposed Rs 50 crore special budgetary support for financially weak Corporations, which was over and above the normal budgetary support of Rs 59 crore.
Disclosing that the Government provided Rs 76 lakh to 335 cancer patients during the current year out of Cancer Treatment and Management Fund for Poor, which was launched in July 2010, Mr Rather proposed Rs 2 crore for the Fund for next fiscal year and also appealed to the Government employees to contribute generously for this noble cause. He also kept a provision of Rs 2 crore for Medical Aid Trust, headed by the Chief Minister, which has been providing help to poor and needy patients in fighting serious ailments.
Mr Rather also proposed Rs 50 lakh to extend financial help to acid victims in the budget keeping in view the directions of the Supreme Court.
He noted that ex gratia relief in favour of kin of Jammu and Kashmir police personnel, who attained martyrdom in militancy related violence has already been increased from Rs 2 lakh to Rs 7 lakh.
The Finance Minister proposed Rs 194 crore for Constituency Development Fund for legislators, Rs 164 crore for Leh, Rs 159 crore for Kargil, Rs 128 crore for Border Area Development Programme and Rs 52 crore under BRGF. He proposed to bring all 69,000 left out cases of physically challenged persons, destitute women and old age pensions under the Integrated Social Security Scheme. For the purpose, he proposed an allocation of Rs 21 crore in the next year’s budget. In addition, he proposed a plan allocation of Rs 266 crore and non plan allocation of Rs 147 crore for Social Welfare Department including Rs 50 crore under Tribal Sub Plan.
Noting that the fabrics used in making bags, purses, tea cozies etc in which crewel cloth, embroidered or chain stitch fabrics are used as primary raw material which were already exempted from VAT, Mr Rather said they made up were presently attracting VAT at the rate of 13.5 per cent. He proposed full exemption of VAT on their sale.
He proposed to reduce VAT on CFLs from 13.5 per cent to 5 per cent.
Mr Rather proposed uniform VAT rate of 5 per cent on durries, quilts, blanket covers, table cloth, table covers, mufflers, bed spreads, pillow case, pillow slips, floor coverings, spread sheets, masnada, dastarkhwan, bed sheets, bed covers, pillow covers and woolen blankets. At present, these items were covered under different VAT rates ranging from 5 per cent to 13.5 per cent.
Noting that he had already exempted items like dhoops, agarbatti, havan saamagree etc from the purview of VAT, he said it has come to his notice that guggal dhoop and havan saamagree when sold in loose continued to attract VAT at 13.5 per cent. Similarly, idols for worship also attract VAT at 13.5 per cent. He proposed to wholly exempt idols made of stone (other than precious stones) or any type of clay, havan saamagree (packed or loose) and guggal dhoop from the levy of VAT.
The Finance Minister proposed to keep basic food items like atta, maida, suji, besan, pulses, paddy and rice etc from the purview of VAT for one more till March 31, 2014. He pointed out that the State had suffered annual loss of Rs 20o crores due to these exemptions. Maintaining that some States had been charging VAT on these items, he said, the State has decided to keep them exempted from purview of VAT in view of high food inflation.
He proposed to completely exempt raw pashmina wool from the levy of VAT. Pashmina wool was presently attracting 13.5 per cent VAT though raw wool had been exempted from the VAT. He also completely exempted the import of jute fabric from the levy of Entry Tax.
Mr Rather proposed an increase of 5 paise per kilogram in existing rate of additional toll to be effective from next financial year. He also proposed to increase toll rate on import of table birds from Rs 6 per kg to Rs 8 per kg with effect from April 1, 2013.
Asserting that these were some discrepancies in the VAT in some items, he proposed to increase VAT from 5 per cent to 13.5 per cent on pipe fitting of all varieties, handmade or machine made washing soap, detergent, soaps, cables of all types, wires and cable, industrial cables, electronic toys, electrical toys, ‘aam papad’ and ‘aam candy’. At present, some of these items were being charged at 5 per cent VAT and others at 13.5 per cent.
He reduced VAT from 13.5 per cent to 5 per cent on sale of cooked food items sold by the hotels, restaurants, food joints, dhabas etc.
To make the VAT system “dealers friendly’’, Mr Rather said he was proposing modification and simplification. Presently, in case of an offence, the defaulting dealer was liable to pay security and penalty at the rate of twice the amount of VAT payable or 25 per cent of the value of goods, whichever was higher. He proposed to remove second part of the provision.
He also proposed to make provisions to restrict and regulate the security amount of the dealers in a transparent and graded manner under which the amount of security shall not exceed Rs 30,000.
The Finance Minister proposed full exemption of VAT on honey and reduction of VAT from 13.5 per cent to 5 per cent on the sale of saffron. He proposed to enhance exemption limit from Rs 25,000 to Rs 1.5 lakh in case of each Kissan Credit Card from the levy of stamp duty. Similar enhanced limit of exemption will also be available to the holders of Artisan Credit Cards.
He fully exempted the levy of VAT on subsidized small tractors, power tillers and other agricultural implements and attachments.
For 2013-14 budget, Mr Rather proposed total receipts and expenditure at Rs 38,068 crore, thus, making it a zero deficit budget. He said the total revenue receipts were estimated at Rs 33,970 crore based on the anticipated size and pattern of financing of next year’s annual plan. He projected share of Central taxes at Rs 4485 crore as against current financial years Rs 4085 crore.
He jacked up target of State’s own tax revenue for 2013-14 at Rs 6700 crore up from Rs 5400 crore of current financial year, a growth of about 24 per cent. He targeted Rs 4800 crore worth VAT collections next fiscal as against Rs 3940 crore of current year and estimated excise duty collection at Rs 423 crore, Goods and Passengers tax at Rs 516 crore and stamp duty and registration fee at Rs 320 crore besides collections from the taxes on vehicles at Rs 151 crore. He put target for collection of electricity duty at Rs 450 crore.
Mr Rather proposed a non-tax revenue target for next financial year at Rs 3033 crore out of which a major amount of Rs 2541 crore was being assigned to the Power Development Department. In a major initiative, he announced that no Government office shall be supplied electricity without installation of meters and the focus shall be on economy in consumption of energy. He said the Departments would be expected to live within their budgetary allocations and the PDD would be asked to ensure 100 per cent recovery of power dues from the Government offices.
The Finance Minister proposed to waive off surcharge amounting to Rs 22.62 crore for all domestic consumers, who pay their pending electricity bills before the close of current financial year. This will be one time relaxation, he announced.
He listed some other major components of non tax revenue collections as dividends from Jammu and Kashmir Bank and other PSUs (Rs 95 crore), income from Forestry and Wildlife (Rs 68 crore), royalty and fees from Mining and Minerals (Rs 60 crore), irrigation charges (Rs 44 crore) and Water Supply and Sanitation Services (Rs 38 crore).
Mr Rather said he has included the plan proposals in next year’s budget based on annual plan of Rs 8000 crore for 2013-14 and Rs 600 crore under the PMRP.
“Out of the plan outlay, a sum of Rs 1000 crore has been proposed as the State’s share in Central Sponsored Schemes to access Central funding of Rs 3500 crore. The breakup of the proposed Rs 8000 crore worth plan between capital and revenue expenditure was Rs 6436 crore and Rs 1564 crore respectively’’, he added. He recalled that size of State’s twelfth five year plan has been projected at Rs 44,000 crore up from Rs 26,700 crore in the 11th plan.
Mr Rather said the Government has kept a provision of Rs 1095 crore for Agriculture and Animal Husbandry Departments under non plan while the corresponding plan provision is Rs 328 crore. For Education sector, he said, the Government would be spending 9.96 per cent of the next year’s budget i.e. Rs 3287 crore in non plan category. The plan allocation was Rs 456 crores. The Health Department has been given Rs 1534 crore in non plan allocation and Rs 326 crore under plan. The Education and Health Departments would also be getting funds under mega flagship schemes of the Centre.
Total liabilities of the State till 2011-12 have been calculated at Rs 65,979 crores including Rs 20789 from internal debt, Rs 1903 crore from Loans and Advances taken from the Central Government, Rs 22,692 crores from Public Debt, Rs 384 crore from Insurance and Pension Funds, Rs 8335 crore from Provident Funds and Rs 4845 crores from Local Funds etc.
The Capital Receipts were Rs 4812 crores in 2012-13 and were projected at Rs 4098 crores in 2013-14. Of Rs 4098 crore Capital Receipts for 2013-14, Rs 700 crore would be availed from negotiated loans, Rs 125 crore from NSSF loans, Rs 1946 crore from market borrowings, Rs 40 crore from non-debt creating, and Rs 1287 crore from Provident Fund.
Of Rs 9378 crore worth Capital Expenditure, Rs 7036 crore will be plan capital expenditure and Rs 1902 crore non-plan capital expenditure besides Rs 440 crore from Centrally Sponsored Schemes.
The Industry Department would get Rs 221 crore in non plan and Rs 123 crore under plan. Tourism sector would get Rs 237 crore under plan and non plan budget. Mr Rather said the Government was executing a large number of tourism development projects estimated to cost Rs 333 crore, which included restoration and preservation of Mubarak Mandi complex, beautification of Raghunath Bazaar, development of Tawi Front, installation of ropeways, border tourism at Suchetgarh and Baba Chamliyal, development of Mansar and Surinsar lakes, development of Chenab bank in Khour block, development of Rajouri – Poonch circuit and Bhaderwah – Kishtwar circuit; and development of a host of other places of cultural and religious significance like Shiv Khori, Peer Kho, Sukrala Devi, Nangali Saheb, Buddha Amarnath, Sarthal Devi etc. The artificial lake project at Jammu, estimated to cost Rs 70 crore is likely to be completed during the next financial year.
He said schemes worth Rs 18 crore have been approved for Kud, Patnitop and Batote tourist spots including installation of passenger ropeway, illumination of Kud, creation of accommodation and cafeteria and development of Sanasar meadows.
The Government has allocated Rs 374 crore to Housing and Urban Development Department in non plan sector and Rs 371 crore under plan.
Mr Rather proposed to open addition 100 mobile schools during next financial year for the children of Gujjars and Bakerwals.
He proposed immediate constitution of a Standing Task Force comprising senior officers from the fields of Finance, Planning Taxation, Industries and Commerce, representatives from the Industry, professional experts and other stake holders to discuss the demands of the industry as the GST regime will impact the existing package of incentives for industrial sector. Other demands to be taken up by the Task Force included impact of Entry Tax exemptions, Land Lease Policy and sub packages for specific needs of industrialization.
Presenting revised budgetary estimates for 2012-13 in the House, Mr Rather said the cost of purchase of energy would go up to Rs 3875 crore during current financial year as against earlier estimate of Rs 3100 crore. The revised estimates for salary and pension have been pegged at Rs 14,700 crore including Rs 185 crore on salary of migrant employees.
The revenue expenditure earlier estimated at Rs 24,990 crore would now settle at Rs 25,237 crore. The plan revenue expenditure is estimated at Rs 1242 crore as against budgetary estimates (BE) of Rs 1442 crore and non plan revenue expenditure at Rs 23,995 crore against BE of Rs 23,548 crore.
Mr Rather said the total non-tax receipts were estimated at Rs 2118 crore in the BE but the figure now has been modified to Rs 2819 crore, mainly due to higher revenue target of Rs 2352 crore given to the PDD.
“Notwithstanding the global economic slowdown and the national trends, it is a matter of satisfaction that our economic growth has shown consistency and once again maintained the upward trend witnessed in the previous three years. Our Gross State Domestic Product (GSDP), which was only Rs 42,315 crore at current prices during the year 2008-09, was now estimated to rise to Rs 76,115 crore in the current fiscal year of 2012-13. Over the last year’s figure of Rs 65,979 crore, the growth rate at current prices worked out to 15.36 per cent’’, the Finance Minister said.
He added that the corresponding GSDP figures at constant prices are Rs 34,664 crore for the year 2008-09 and Rs 43,628 crore for the current fiscal. The growth rate at constant prices over the last year’s figure of Rs 40,771 crore worked out to 7.01 per cent.
The Finance Minister said: “at current prices, our per capita income figure was Rs 30,212 in the year 2008-09. It rose to Rs 44,533 last year and is estimated to go up to Rs 50,806 in the current financial year. At constant prices, our per capita income rose to Rs 29,215 last year in comparison to the figure of Rs 25,641 in the year 2008-09. For the current financial year, it was estimated at Rs 30,889’’.
“The Thirteenth Finance Commission had asked us to gradually reduce our fiscal deficit and had also fixed the year wise targets. It is a matter of satisfaction that we have very well achieved those targets. For the year 2010-11, our actual fiscal deficit was 4.32% against the target of 5.3%. For the last financial year 2011-12, the prescribed target was 4.7% and the achievement has been 4.54%. As per the new series of constant prices (base 2004-05), these figures have further improved to 4.15% and 4.29% respectively,’’ Mr Rather said.
He added that 450 Megawatt Baglihar Hydro-Electric Project (HEP), Stage II is scheduled to be commissioned during the summer of 2015. Additional energy generated by this project will provide the much needed relief to the consumers during the summer months.
The 390 Megawatt Kirthai II, 93 Megawatt Ganderbal, 48 Megawatt Lower Kalnai, 37.5 Megawatt Parnai, 9 Megawatt Dah and 9 Megawatt Hanu HEPs are at various stages of tendering and allotment. The combined installed capacity of these projects shall be around 600 Megawatt.
Mr Rather said Udhampur-Katra railway line was scheduled to be commissioned in next few months while the work on four out of the six segments of the National Highway was progressing. “We are pursuing the matter with the Central Government authorities for early decision on start of work in the remaining two segments.’’
He said as per the Revised Estimates for the current financial year, the total budgetary receipts are expected at Rs 34,311 crore as against the BE of Rs 33,853 crore. “This substantial improvement in the budgetary receipts has been possible due to a record high collection of State taxes, even though our share in the Central taxes has come down by Rs 160 crore’’, he added.
“Our tax collections this year, too, are expected to be far in excess of the BE. The Revised Estimates are Rs 5,975 crore in comparison to the BE of Rs 5,419 crore, showing an increase of Rs 556 crore.The growth rate works to about 26 per cent over the last year’s collection of Rs 4,745 crore, the Finance Minister said.
He added that the VAT collected by the Commercial Taxes Department is likely to reach Rs 4,219 crore in comparison to the BE of Rs 3,940 crore, exceeding the budgetary target by Rs 279 crore.
“Our initiatives taken during the last two years have resulted into a further jump in the collections of registration fee and stamp duties. In comparison to the BE of Rs 152 crore, we are hoping to collect Rs 271 crore. The revised estimated figures indicated a jump of about Rs 120 crore or about 80 per cent above the BE’’, he said.
Other major items of tax receipts reflected in the revised estimates included State excise duties Rs 413 crore in comparison to Rs 404 crore projected in the budget estimates, Mr Rather said, adding that taxes on Goods and Passengers would be Rs 474 crore in comparison to Rs 461 crore reflected in the BE.
“Electricity duty collections have been projected in revised estimates at Rs 423 crore in comparison to BE of Rs 306 crore. Realization of this target is directly linked to the recovery of electricity charges from the consumers commensurate with the energy fed into the transmission system’’, the Finance Minister said.
He said a provision of Rs. 783 crore has been proposed for Urban Local Bodies, Universities and other autonomous bodies for supplementing their revenue expenditure requirements.
Later, Mr. Rather while speaking at a press conference said that J&K is one of the few States of the country which was within the limits of targets fixed by the 13th Finance Commission to contain the fiscal deficit. He said the State’s total tax revenue has marked 123 per cent increase during last four years from 2009 when the present Coalition Government came into power. He said the total tax revenue in 2009 was Rs. 2600 crore only which has increased to Rs. 5900 crore this year despite levying no new taxes.
Mr. Rather said he has tried to provide tax relief to almost every segment of the society including trade, industry, farmers, journalists and BPL class. He said a provision of Rs. 231 crore has been kept for devolution to Panchayats adding that Panchayats has been empowered to implement various schemes like MG-NREGA of the order of more than Rs. 1300 crore.
Announcing other welfare initiatives, Mr. Rather said a provision of Rs 5 crore has been proposed for housing and Rs. 9 crore for transit accommodation of migrants under PMRP. He said Rs. 8 crore will be set apart for migrants’ group mediclaim insurance. He announced that a provision of Rs. 100 crore will be kept for employment related initiatives including Rs. 55 crore as seed capital for SKEWPY and Rs. 20 crore for Youth Start-up Loan Scheme adding that about 18000 posts will be filled in next few years. He said all the pending cases under Old Age Pension Scheme will be cleared for which an amount of Rs. 21 crore has been proposed during next financial year.
Highlights
* Total budget estimated at Rs 38068 crore.
* Revenue Expenditure (RE) including Security Related Expenditure (SRE) Rs 28690 crore, Capital Expenditure (CAPEX) Rs 9378 crore.
* Non Plan Revenue Expenditure (NPRE) consumes Rs 27096 crore of which Rs 17002 crore would go on salaries and pension.
* A provision of Rs 842 crore to disburse third installment of Pay/Pension revision arrears to Government employees and pensioners.
* Provision of Rs 700 crore for DA to employees and pensioners.
* Rs 75 crore provision in 2013-14 for 10% Employer’s share under New Pension Scheme introduced from January, 2010.
* Provision of Rs 50 crore for clearing statutory liabilities of Corporations reported at over Rs 95 crore.
* Rs 26 crore for meeting cost of VRS/GHS in PSUs.
* Annual Plan 2013-14: Rs 8000 crore. PMRP Rs 600 crore.
* State Share of Rs 1000 crore in Plan to access Central funding of about Rs 3500 crore under Centrally Sponsored Schemes and various flagship schemes.
* Plan Revenue Expenditure (PRE) estimated at Rs 1564 crore, Plan Capital Expenditure (PCE) Rs 7036 crore excluding CSS.
* Rs 787 crore provision for Urban Local Bodies, Universities and other autonomous bodies / institutions for supplementing their revenue expenditure requirements.
* Plan provision of Rs 1579 crore for Social Services and Rs 652 crore for General Services Sectors.
* Rs 2207 crore for Special Area Programmes including Rs 87 crore for Leh, Rs 81 crore for Kargil, Rs 128 crore for BADP, Rs 62 crore for Tribal Sub – Plan, Rs 52 crore under Rashtriya Shram Vikas Yojana and Rs 1741 crore for District Plan.
* Provision of Rs 384 crore for Agriculture and allied activities including Rural Development.
* Plan provision of Rs 126 crore for Industries and Minerals, Rs 613 crore for Transport, Rs 18 crore for Communication and Rs 4.6 crore for Science, Technology and Environment Sectors.
* Plan provision of Rs 889 crore for Energy Sector.
* Rs 600 crore under PMRP out of which Rs 477 crore reserved for counterpart fund – Asian Development Bank and Rs 123 crore for rehabilitation of dwellers of Dal and Nageen Lakes.
* Rs 231 crore for devolution to Panchayats.
* Panchayats to receive more than Rs 1300 crore for various development programmes.
* Provision of Rs 5 crore for housing and Rs 9 crore for transit accommodation of migrants under PMRP.
* Rs 8 crore set apart for migrants’ group mediclaim insurance.
* Provision of Rs 100 crore for Employment related initiatives including Rs 55 crore as seed capital for SKEWPY and Rs 20 crore for Youth Start-up Loan Scheme.
* Pending cases under Old Age Pension Scheme to be covered with financial implications of around Rs 21 crore.
* Rs 2 crore for Medical Aid Trust Fund.
* Daily wage rate up from Rs 125 per day to Rs 150.
* Government to explore and participate in insurance cover for journalists.
* Comprehensive restructuring of Excise and Taxation wing to be undertaken
* 70000 to 80000 posts hoped to be filled in the next few years.
* Scheme for financial help to the acid victims being launched.
* Rs. 2 crore contribution to the corpus of Cancer Treatment and Management Fund.
* BPL orphan girls to get Rs. 30,000 for marriage. Rs. 3 crore earmarked for the scheme.
* 100 new mobile schools to be opened during next year.
* Surcharge on the electricity bills in case of delayed payments who clear their pending bills during current financial year to be waived off.
* As a one time exercise, all the previous energy consumption accounts of PDD with the consuming departments to be squared up.
* Provision of Rs. 1.00 crore for giving start to a well designed and effective and educational campaign against the habits of smoking and chewing tobacco.
* Atta, Maida, Suji, Besan, Rice and Paddy outside VAT net for one more year.
* Tax concessions (VAT Remission) to industry extended upto 31.03.2014 or till adoption of new GST regime by J&K Government.
* Existing tax exemptions to Tourism sector to continue for another year.
* The rates for Government advertisements to newspapers to be increased by 50% percent.
* Honey exempted from levy of VAT.
* VAT on saffron reduces to 5 per cent.
* Subsidized small tractors, power tiller and other agricultural implements and attachments exempted from levy of VAT.
* Limit of exemption from stamp duty increased to Rs 1.50 lacs for both Kissan Credit Cards and Artisan Credit Cards.
* VAT on cooked food items sold by hotels, restaurants, food joints, dhabas reduced to 5 per cent from 13.5 per cent percent.
* Import of Jute fabric exempted from the levy of Entry Tax.
* Raw Pashmina exempted from VAT
* Stone made idols, havan samagari both packed and loose and guggal dhoop exempted from the levy of VAT.
* VAT on durrets, quilt, blanket covers, table cloth, table covers, mufflers, bed spreads, pillow case and pillow sleeps to decrease to 5 percent.
* VAT rate on CF Lights to be reduced to 5 percent.
* Services provided by Authorized Automobile Service Stations, Property dealers/Real Estate Agents and Consultants other than those already included in a service covered by J&K GST Act brought under Services Tax net.
* Toll rate to increase by 5 paisa per kilograms in the existing rate of Additional Toll.
* Toll rate on import of table birds to increase from Rs 6.00 per kg to Rs 8 per kg.
* VAT on cigarettes to increase from 30 percent to 40 percent.
* Pipe fittings, hand made or machine made washing soap, cables of all types including industrial cable, ‘Aam Papad’ to be taxed at uniform rate of 13.5 percent.
* VAT system made dealer friendly.
* Penalty equivalent to 25 percent of value of goods in case of an offence lowered. However the penalty at the rate of twice of VAT to continue.
* The legal heirs of registered dealers not to apply for fresh registration.
Sidelights
* “Mana Ki Shama Deti Hai Mehfil Ko Roshni, Aandhi Mein Jo Chiraag Jale Uski Baat Aur”, was the couple Finance Minister Abdul Rahim Rather quoted at the start of his budget speech in the Legislative Assembly.
* “Agar Yeh Chaho Kay Sar Par Ho Nekiyon Ka Taj, Sar Yateem Pay Shafkat Ka Ek Haath Karo”, Mr Rather quoted again when he announced Rs 30,000 financial aid to each orphan BPL females’ marriage.
* He ended the budget speech with another couplet: “Raah Ki Dushwarion Mein Kaam Aaye Do Rafeeq, Ik Mera Joshe Junoon Aur Ik Mera Shouke Safar”.
* Mr Rather was scheduled to start his budget speech at 12 noon but he was late by three minutes as the PDP MLAs staged a walk-out after debate on adjournment motion of Baramulla youth’s killing.
* The Finance Minister’s budget speech lasted exactly 70 minutes.
* Chief Minister Omar Abdullah, who didn’t attend the Assembly proceedings during debate and reply on adjournment motion, came to the House as soon as Mr Rather entered the Assembly to deliver his budget speech.
* Omar heard the budget speech with rapt attention and remained present in the House for full 70 minutes.
* Some of the Opposition members were of the view that ban on tobacco and its products, increase in cigarette prices and announcements like Rs 30,000 to orphans BPL girls for marriage were populist measures taken in view of the next year’s Assembly elections.
* However, ruling party members were of the view that the Finance Minister had to present one more budget next year and, therefore, current budget can’t be dubbed as election budget.
* Ruling National Conference and Congress Ministers and MLAs thumped the desks when Mr Rather announced various measures including ban on tobacco production and increase in cigarette prices.
* “Aur Badao (increase more)”, remarked BJP MLA Ashok Khajuria when Mr Rather announced hike in cigarette prices.
* CPM MLA MY Tarigami wanted the Government to increase the liquor prices also when Mr Rather announced increase in cigarette prices and ban on tobacco products.
* The Finance Minister delivered his budget speech with all PDP members including former Finance Minister Muzaffar Hussain Baig being absent from their seats as they had staged walk-out on Baramulla killing.
* At the start of his budget speech, Mr Rather described Chief Minister Omar Abdullah as young, dynamic, courageous and visionary leader.
* He said this will be the fifth chapter in the new economic history being written by the coalition Government, led by Omar, referring to fifth budget of the present dispensation.
* This was fifth consecutive budget of Mr Rather in the present NC-Congress coalition Government.
* Mr Rather delivered the budget speech in Urdu.
* The Opposition members from Jammu, who were present in the Assembly, didn’t interrupt Mr Rather at any stage of his budget speech.
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