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State Financ2003

State Financ2003

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Published by: pmanik on Aug 29, 2009
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The fact that the State had brought out White Paper on Finances of the Statespotlighting the areas of concern on the fiscal front is first of its kind in the fiscal history of the State. It has been a recurring phenomenon that the State budget has ended up inrevenue deficit since 1987-88. The Budget Estimate for 2002-03 showed that the totalrevenue expenditure was in excess of the revenue receipts to the tune of Rs.6233.22 crores.The overall deficit in 2002-03 was estimated at Rs.1330.24 crores.The Budget for 2002-03 set sectoral and sub-sectoral priorities to which the StateGovernment had to address. The Chief Minister's 15 Point Programme was high on thedevelopment agenda of the Budget for 2002-03. The 15 - Point Programmes unveiled bythe Government are delineated in Box -I
The 15 - points listed above show that the development strategy conceived a widespectrum of development issues and are tailored to attaining superb improvements ingrowth with social justice, equitable distribution of income and provision of Social SafetyNet for the marginalised section of the population.Budget Estimate 2002-03 contemplated Mid-term Fiscal Reform Programme,Administrative Reform, Zero Base Budgeting and Rationalisation of Subsidies, Block Grants and Aids to the Institutions, Reforms in the Public Distribution System,Government guarantees, Debt Management, Reforms in the public sector and co-operativeinstitutions, reforms in the transport and power sector , Budgetary reforms andstrengthening of local self-Government through decentralised democratic process.In order to make good the deficit in the revenue receipts the Government hadproposed various measures. The State is contemplating implementation of Value-AddedTax with respect to commercial taxes. In addition to this, the Budget took a number of taxrationalisation measures. The Entry Tax was levied in respect of few items - motorspirit; lubricating oil; bituman; aluminium; asbestos cement sheets; marbles; granites;ceramic tiles, sanitary wares, etc.
Box - 1
Chief Minister's 15 Point Programme - Salient Features
Ever green revolution;
Energy security;
Food security;
Infrastructure for development;
Livestock security;
Literacy and technocracy;
Water security;
Gender equity;
Health security;
New deal for the oppressed classes;
Livelihood security;
Technological leaf frogging;
Shelter security;
Arts and culture;
Ecological security;
One notable feature is that the Government proposed to introduce a "
" 2002 for a period of three months, set up of "
settlement commission
" to deal withthe specific categories of arrears. The Samadhan scheme enjoins upon the dealers towithdraw the appeal on Samadhan and all pre-deposits against the deposited amount Thepresent modality for self assessment was also reviewed.
1. Budget 2002-2003 Accounts-A Snap Shot View:1.1.Revenue Receipts:
 The Budget for 2002-03would be considered a growthsimulating one. The totalrevenue receipts consist of devolution of resources from theCentral Pool, States Own Taxrevenue, States Own Non-TaxRevenue. The total revenuereceipts amounted to Rs.20836.7 crores in 2002-03 against Rs.18818.0 crores in 2001-02and Rs.18316.7 crores in 2000-01. A decomposition of revenue receipts into tax and non-tax components indicated that they are in the ratio 83.5 : 16.5 - during 2002-03. State'sown tax revenue accounted for 68.83 per cent - and devolution of resources from centre14.62 per cent.Within State's Own Tax Revenue, General Sales Tax accounted for nearly 60 percent, followed by State Excise Duties (14.6%), Central Sales Tax (6.4%), Taxes onVehicles (5.2%) and Stamps and Registration Fees (14.6%). The buoyancy and elasticityof the State Taxes is predicatedby the acceleration in the growthof industry and agriculture andservice sector. To the share of Central Taxes, the Union Exciseaccounted for 36.4 per cent andIncome Tax 17.4 per cent. Itmay be noted that therecommendations of XI UnionFinance Commission actedagainst the interests of the Statein which the State's relative sharehad come down from 5.89 percent to 4.77 per cent. The Statestood to lose resources to a whopping Rs.4036.16 crores.It may be mentioned that stagnation in State's Non-Tax Revenue is noticedbecause of non-collection of user charges for most of the economic activities. Withrespect to Grants -in -Aid there appears to be a stagnancy in the flow during recent past.This is perhaps due to the criteria adopted for deciding quantum of Grants -in -Aid fromthe Centre to the State are iniquitous.
15066325115880293817389344706000120001800024000Revenue Receipts (in Rs. Crores)
Tax Non-Tax
Revenue Expenditure (Rs in Crores)
Table - 1Receipts on Revenue Account by Principal Heads
(Rs. lakhs)
SI.No.Details 2000 - 01 (A) 2001 - 02 (A) 2002-03 (A)
I Tax revenue (A+B) 1506600 1587976 1738928A. Share of Central taxes 278375 287007 3047571 Income Tax 53484 513992 Union Excise 278375 100272 1072793 Corporation Tax 0 60603 661224 Other taxes on Income & Expenditure 0 476 4425 Taxes on Wealth 0 150 1066 Customs 0 64757 697597 Share of net proceeds assigned to States 0 1472 21838 Service Tax 0 5793 7467B. States own tax revenue 1228225 1300969 14341711 Agricultural Income Tax 523 202 1632 Land Revenue 5572 5047 8403 Urban Land Tax 1165 1411 12694 Stamps & Registration Fee 91020 113789 1079125 State Excise Duties 186868 205822 2113616 General Sales Tax 601329 683888 8660937 Central Sales Tax 218386 154671 928678 Taxes on Vehicles 59044 64843 745629 Electricity Duties 22701 25975 1351810 Entertainment Tax 8556 8800 815811 Betting Tax 396 749 43712 Luxury Tax 7585 6498 739713 Sugarcane Cess 929 1009 64214 Taxes on Goods & Passengers 24151 28265 4895215 Deduct Refunds 0 0 0II Non tax revenue (A+B) 325067 293827 344746A. State's own Non -tax Revenue 171078 155673 1860621 Interest receipts & dividends and profits 44017 53543 594702 General Services 31711 32609 387963 Social Services 22759 23600 261584 Economic Services 72591 45921 61638B. Grant -in -Aid from Centre 153989 138154 158684
Total revenue receipts (I&II) 1831667 1881803 2083674
Source: Budget Documents of various years.

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