In election year, the Modi government has gone all out to woo voters. As expected, finance minister Vaju Vala presented a please-all budget for 2012-13 announcing tax relief to the tune of Rs410 crore. With an eye clearly on the common man’s vote, tax has been cut on hardware, helmets, butter, paneer, incense sticks, puja items, among other goods. Electricity duty has been slashed by 25% for residential and education categories, but industrial and commercial rates remain the same.
Vala, in his 18th budget speech in the Assembly, proposed a budget size of Rs1,01,712 crore for 2012-13, 26% higher than Rs80,694 crore in 2011-12. The annual plan size witnessed a jump of 33% from Rs38,000 crore to Rs50,599 crore. The overall surplus of the budget is estimated at Rs317.22 crore. Continuing with the government’s stated aim of improving the Human Development Index of the state 40% of the total planned expenditure of Rs20,308 crore is dedicated to the social sector. In a first of sorts, the budget included allocation of Rs200 crore for health cover under the name Amrutam to provide medical treatment to BPL families.
Vala reduced Value Added Tax (VAT) rates on hardware, helmet, butter, cheese, paneer, sanitary napkins and diapers from 15% to 5%, while medical implants, fish food, toys (except electronic toys), incense sticks, puja items, prasad, loban, firki, thread and sabudana were exempted from VAT.
