Govt Budget 2012-13
JAMMU; Mar 05:Finance Minister Abdul Raheem Rather on Monday presented what he called as “peace dividend” budget for the year 2012-13 in the State Assembly.
Only 26% of the total expenditure would go into the capital side making it the costliest developmental story in India. Resource outgo on the interest payments is eight percent of the total expenditure as purchase on energy and 'others' will devour nine percent each. Balance two percent goes to the special security related requirements of the state that excludes the police.
Managing resources for such a huge requirement offers interesting insights into the public finances of India's most sensitive state. While 53% are the central grants and 13% is the state's share from the central tax pool, J&K's own tax base will contribute 16% to the requirements and the non-tax another six percent. Balance 12% will be managed by barrowings.
"I am not the finance minister of a resource rich state," Rather told reporters after presenting the budget. "But you must appreciate that we have the highest growth in tax collections in India."J&K collected record taxes of Rs 4800 crores which is a jump of Rs 1317 crores - a 38% growth over last year. "No other state in India had such a growth in a single year," Rather pointed out. He foresees a net collection of Rs 5419 crores in 2012-13.
Within the limitations of the tied-grants and shallow resource base, Rather tried to offer certain concessions. The 'peace dividend' is the major initiative of his proposals.
Banking on impressive tourist arrivals to Ladakh, Jammu and Kashmir (crossing 12 millions in a year) and terming the trend as "consolidation of peace and order", Rather said the numbers signify the "growing confidence of the visitors in the persistent efforts and capability of the government in restoring peace and order".
In order to help industry invest in the additional infrastructure, Rather announced a slew of concessions to the 'tourism units' that includes every activity from hotels to recreation facilities.
It includes Capital Outright Investment Subsidy of 30% on fixed assets for new investments to the tune of three million rupees which could be increased to one crore rupees in case of prestigious units (Rs 25 crore investment). It will be extended to the substantial (not less than one third) expansion in bed capacity as well.
They will be funded fully for the DPRs, expenses on their stamp duty on mortgages will be remitted to the extent of Rs 60,000 and insurance premiums subsidized by 60% and purchasing diesel generations by 75%.
For paying guest houses, the government will offer 40% capital subsidy and for equipment related to tourism including training the workforce it will be fifty percent costs would be subsidized.
Some main highlights of the Budget are:
(1) No VAT will be applicable on wheat, rice, suji, baisan and other essential commodities.
(2) Tax concession to industrial units have been extended by one year.
(3) Exemption of water usage charges for 10-yrs for independent power producers.
(4) All IT institutes brought outside the purview of service tax.
(5) Service tax exemption for private hospitals, nursing homes, diagnostic centres and pathological labs.
(6) VAT increased from 25% to 30% on tobacco products.
(7) Woman candidates belonging to BPL families seeking Govt jobs exempted from payment of application fee and/or examination fee.
(8) Remuneration of Nambardars and Chowkidars enhanced to ` 751/- and 750/- per month from 1st April, 2012.
(9) Rehbar-e-Talim to get uniform remuneration of 3000/- per month from 1st April, 2012.
Only 26% of the total expenditure would go into the capital side making it the costliest developmental story in India. Resource outgo on the interest payments is eight percent of the total expenditure as purchase on energy and 'others' will devour nine percent each. Balance two percent goes to the special security related requirements of the state that excludes the police.
Managing resources for such a huge requirement offers interesting insights into the public finances of India's most sensitive state. While 53% are the central grants and 13% is the state's share from the central tax pool, J&K's own tax base will contribute 16% to the requirements and the non-tax another six percent. Balance 12% will be managed by barrowings.
"I am not the finance minister of a resource rich state," Rather told reporters after presenting the budget. "But you must appreciate that we have the highest growth in tax collections in India."J&K collected record taxes of Rs 4800 crores which is a jump of Rs 1317 crores - a 38% growth over last year. "No other state in India had such a growth in a single year," Rather pointed out. He foresees a net collection of Rs 5419 crores in 2012-13.
Within the limitations of the tied-grants and shallow resource base, Rather tried to offer certain concessions. The 'peace dividend' is the major initiative of his proposals.
Banking on impressive tourist arrivals to Ladakh, Jammu and Kashmir (crossing 12 millions in a year) and terming the trend as "consolidation of peace and order", Rather said the numbers signify the "growing confidence of the visitors in the persistent efforts and capability of the government in restoring peace and order".
In order to help industry invest in the additional infrastructure, Rather announced a slew of concessions to the 'tourism units' that includes every activity from hotels to recreation facilities.
It includes Capital Outright Investment Subsidy of 30% on fixed assets for new investments to the tune of three million rupees which could be increased to one crore rupees in case of prestigious units (Rs 25 crore investment). It will be extended to the substantial (not less than one third) expansion in bed capacity as well.
They will be funded fully for the DPRs, expenses on their stamp duty on mortgages will be remitted to the extent of Rs 60,000 and insurance premiums subsidized by 60% and purchasing diesel generations by 75%.
For paying guest houses, the government will offer 40% capital subsidy and for equipment related to tourism including training the workforce it will be fifty percent costs would be subsidized.
Some main highlights of the Budget are:
(1) No VAT will be applicable on wheat, rice, suji, baisan and other essential commodities.
(2) Tax concession to industrial units have been extended by one year.
(3) Exemption of water usage charges for 10-yrs for independent power producers.
(4) All IT institutes brought outside the purview of service tax.
(5) Service tax exemption for private hospitals, nursing homes, diagnostic centres and pathological labs.
(6) VAT increased from 25% to 30% on tobacco products.
(7) Woman candidates belonging to BPL families seeking Govt jobs exempted from payment of application fee and/or examination fee.
(8) Remuneration of Nambardars and Chowkidars enhanced to ` 751/- and 750/- per month from 1st April, 2012.
(9) Rehbar-e-Talim to get uniform remuneration of 3000/- per month from 1st April, 2012.
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