Finance minister Prafulla Chandra Ghadei has tough task ahead when he tables this year’s budget in the Assembly on June 12. Meltdown and a host of government sponsored pre-poll populist measures costing a fortune would cast a spell on the new budget. Ghadei will have to do a balancing act in the budget to carry forward the development programmes of the state government. Populist measures like Rs 2-a-kg rice scheme, enhanced pay package for government employees under the Sixth Pay Commission and other developmental measures would hit the state treasury hard this time around. One of the major decisions taken by the State Government before the election was the implementation of the recommendations of the Sixth Pay Commission for the employees. This alone will cost the state treasury nearly Rs 2,400 crore per annum. Similarly the Rs 2-a-kg rice scheme would cost the state coffers nearly Rs 850 crore and the state government would have to cough up around Rs 600 crore for paying the teachers and lecturers.
“The recession impact would be felt on tax receipt. Revenue collection would nosedive. But we are working out on it to present a balanced budget,” Ghadei said.
Tax receipts of the state government are likely to be less than the previous year’s because of the slowdown. Besides, the state’s share from Central taxes would be less this time. It is believed that both tax and non-tax revenues of the state will be less this year because of the recession. The Central share to the state would be minimal this time.
At the same time the govt has to invest large on infrastructure , agriculture and other basic services of the people to prove the choice of citizen in the last assembly election. But the recession time will make it difficult for more state expenditure because of less state revenue this year ,otherwise may further deteriorate the existing unfavorable fiscal condition .
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