MP presents a Rs 4.98 bn deficit Budget

Madhya Pradesh Finance Minister Ajay Narayan Mushran on Wednesday presented the Budget with a deficit of Rs 4.98 billion for the financial year 2002-03.

Revenue receipts in the financial year 2002-03 are expected to be Rs 142.31 billion which is Rs 16.53 billion more than the receipts in 2001-02, Mushran, the first finance minister in the state to present the Budget for nine years in a row, told the state assembly.

A provision of Rs 110.36 billion had been made for planned expenditure in the next financial year, Mushran said and added that this is Rs 20.13 billion less than the expenditure in 2001-02.

Mushran also said that receipts from public loans in the next financial year are expected to be Rs 23.85 billion, which is Rs 2.05 billion less than the receipts in 2001-02.

The exemption of 15 per cent surcharge and one per cent entry tax on petroleum products, which had been given in the year 2000 are being withdrawn, he announced and added that this is likely to yield Rs 750 million.

The minister also said that in view of the decision to introduce value added tax in the state from the next financial year, it has been decided to impose a sales tax of two per cent on processed grains and pulses.

The only item on which sales tax has been reduced is wood, for which it has come down from 20 to 12 per cent while it has been increased for some of the items including, bread, PVC footwear and spectacles.

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