The Hindu               18.02.2014

West Bengal unveils budget with thrust on employment, projects

With Lok Sabha elections round the corner, the Trinamool Congress government unveiled on Monday a budget, which placed a major thrust on employment, even as it rolled out a galaxy of projects.

Placing his third budget since this government came to power in 2011, Finance Minister Amit Mitra said that the main thrust of his budget was to give a big push to the momentum of employment… “We plan to create more than 16 lakh new employment opportunities” in 2014-15. In 2013-14, the State created 13.2 lakh employment opportunities.

Mr. Mitra announced new employment-oriented schemes in sectors such as transport services, agro-marketing, tourism, self-help groups, small and micro and medium scale sector and an integrated powerloom park.

Rs. 9 crore deficit

Presenting a Rs. 9 crore deficit budget with no additional resource mobilisation, Mr. Mitra said that Rs. 30,847 crore was being provided towards the plan outlay, which was 15.7 per cent higher than that of the previous year.

He dwelt at length on how the State had lost nearly Rs. 70,000 crore in revenue since 2010-11 towards servicing debts of the previous government. “Once again the State has taken up the challenge of generating more resources.” The target for the State’s own tax collection for 2014-15 was kept at Rs. 45, 413.9 crore.

Tax proposals

In his tax proposals, Mr. Mitra followed up on his VAT reforms last year with structural reforms in profession tax administration. He drastically reduced entries in the tax schedules, raised exemption limits, and provided exemption to small business.

Medium and small-scale business was a focus area. Mr. Mitra announced simplification in VAT registration, while taking measures to enhance the transparency of the system by curtailing the scope of unauthorised ‘visits’ from sales tax officials.

Noting that small and medium businesses were the largest employers in the State, he said that to ease their woes in getting bank credit, the government would facilitate the launch of a micro business credit card (on the lines of the Kisan Credit Card). This would be introduced from April 1 by State Bank of India.

There were also relief measures for property owners.

By the way of allocations, panchayat and rural development, school education health and family welfare and agriculture got the major share.

Mr. Mitra said West Bengal was growing at a faster rate than India; not only in respect of GDP but also in respect of agriculture, industry and services. While the State GSDP would be around 7.7 per cent, agricultural growth would be 5.3 per cent and industry 9.6 per cent. “Those who spoke negatively about the State do so with an ulterior motive based on falsehood.”