M A I N   N E W S

‘Election-oriented’ Budget for HP
Entry tax hiked, DA instalment released
Tribune News Service

Shimla, March 7
An election-oriented Budget of Rs 6,115 crore with an anticipated deficit of Rs 45.17 crore during 2002-2003 was today presented in the Himachal Pradesh Assembly by the Chief Minister, Mr P.K. Dhumal.

Being the last Budget of the present government as the Assembly elections are due in February next year, Mr Dhumal has showered sops on almost all sections without imposing any fresh taxes.

The financial year opens with a deficit of Rs 152.54 crore and is expected to close with a cumulative deficit of Rs 197.72 crore.

Mr Dhumal announced that the state lotteries, which were banned some time ago, will be restarted next month to fetch an annual income of Rs 20 crore.

He announced an increase of Rs 10 on the tax on all vehicles entering the state to fetch an additional income of Rs 2 crore. The collection points would again be auctioned. The increase of tax would not be applicable to two-wheelers. Tractors for agriculture operations have been completely exempted from the tax.

Mr Dhumal announced free travel facility to accredited press correspondents in government buses at the subdivisional-level for covering developmental activities.

To fulfil the commitment of the BJP’s election manifesto of 1998 the minimum wage of daily-wage earners have been increased to Rs 60 from Rs 55 with effect from August 1. The services of those remaining who have completed eight years of service will be regularised.

The Chief Minister announced the release of the instalment of dearness allowance, which was due to the employees with effect from July 1, 2001. The instalment will be released with effect from April 1 in cash and the arrears up to March 31 shall be credited to the GPF account of employees.

He announced a hike in the honorarium of chairman of zila parishad from Rs 2,400 to Rs 2,700 per month, vice-chairman’s from Rs 1,500 to Rs 1,800 and of members from Rs 1,000 to Rs 1,250 per month. The honorarium of chairman of a Panchayat samiti has been enhanced from Rs 1,000 to Rs 1,250 per month, vice-chairman’s from Rs 750 to Rs 1,000 and members from Rs 500 to Rs 750. The honorarium of pradhan of a gram panchayat has been enhanced from Rs 500 to Rs 750 and of, up-pradhan from Rs 400 to Rs 650. The honorarium for the members of the panchayats has been increased from Rs 100 to Rs 200 for two compulsory sittings.

The monthly honorarium of the mayor of the municipal corporation has been enhanced from Rs 2,400 to Rs 2,700, deputy mayor from Rs 1,500 to Rs 1,800 and members from Rs 1,200 to Rs 1,500. The honorarium of presidents of nagar parishads has been increased from Rs 1,000 to Rs 1,250 and vice-presidents from Rs 750 to Rs 1,000. The fee of members of nagar parishad has been increased from Rs 50 to Rs 100 per sitting and their honorarium increased from Rs 200 to Rs 400. The honorarium of presidents of nagar panchayats has been increased from Rs 500 to Rs 750 per month and vice-presidents from Rs 400 to Rs 650.The fee of members has been doubled as in the case of members of the nagar parishads.

Mr Dhumal said a provision of Rs 160.67 crore had been made in the tribal sub-plan for 2002-2003 as against Rs 98.98 crore in 1997-98. Under the Scheduled Caste Special Component Plan a provision of Rs 190.75 crore has been made for 2002-03.

For backward area sub-plan, Rs 78.77 crore has been earmarked for 2002-03 which is 10 per cent more than the current year.

The Chief Minister announced the setting up of the Sutlej upper valley power corporation in the joint sector with the NJPC and other central organisations. The 400 mw Rampur hydel power project, 225 mw Karchham-Shongton and 400 mw Thopan-Pouwari hydel projects would be executed by the corporation.

A provision of Rs 959.66 crore has been made for the education sector in the Budget which is 15.70 per cent of the total Budget. He said the government proposed to open 200 middle, 25 high and 50 senior secondary schools, besides four degree colleges. He also proposed enhancement in scholarships for the students studying in Sainik Schools.

Those getting Rs 9,000 earlier would get Rs 9,500, those getting Rs 7,188 would get Rs 7,500 and those getting Rs 5,375 would get Rs 5,500 annually.

The pension of the aged, widows and physically handicapped is being increased from Rs 150 to Rs 200 per month and social security pension of ex-patients of leprosy would also be enhanced to Rs 200.

Pension for Ex-servicemen and their widows has been raised from Rs 5,400 per annum to Rs 11,000.

He announced the increase in daily allowance of Home Guards from Rs 70 to Rs 75 and reservation of 15 per cent posts in various categories in the Police Department. He said the Home Guards would also be given a similar 15 per cent reservation in the cadres of forest guards and hail warders. Home Guard’s enlistment would also be done upto 58 years of age.

The Chief Minister said to remove the anomalies the government had decided to give family pension to all those employees at the rate of 30 per cent who retired before January 1, 1986, and after Janaury 1, 1996, in place of 15 per cent and 20 per cent being received by them at present. They would get the enhanced pension with immediate effect and the payment of arrears would be made in instalments.

He said the 20 categories of employees in the state not getting pay scales on the Punjab pattern would now be paid on that pattern and the payment of arrears would be done in instalments.

He announced ration allowance to the police personnel at the rate of Rs 100 per month up to the rank of Deputy Superintendent of Police. Mr Dhumal announced a grant of non-practicing allowance for ayurvedic chikitsa adhikaris at the rate of 25 per cent of the pay as being given to allopathic doctors with effect from April 1.

The stamp duty being charged on housing loans at the time of mortgage at the rate of 3.5 per cent on loans being taken from the banks has been exempted.

He said the government had decided that all bonafide Himachalis would be eligible for purchase of land for the construction of house in the state subject to a maximum limit of 500 sq.m.

Mr Dhumal announced the withdrawal of commercial rates on the supply of electricity for threshers and flour mills installed in houses in rural areas and said they would be charged on old rates. Similarly the commercial rates for electricity up to 150 units in temples would also be charged on domestic rate.

The sales tax being charged at the rate of 4 per cent on chemical fertilisers has been abolished.

He said during 2002-03 for horticulture activities a budget provision of Rs 38.40 crore had been proposed.

He announced to reduce the charges from Rs 20 to Rs 10 per month on private tap connection in the Rural Water Supply Schemes for individuals.

Mr Dhumal said the government would introduce “gramin parivahan swarojgar yojna “ during the year under which 1,000 youths would be given licences to ply maxi cabs. He said such vehicles would be exempted from road tax for five years on Kutcha routes.

He announced a new scheme titled “mukhya mantri gram path yojna” for the construction of streets in the rural areas for which a provision of Rs 10 crore has been made in the Budget under decentralised planning.

Mr Dhumal said the government had decided to abolish 10 per cent automatic annual increase in the passenger and goods tax for maxi cabs and taxis under the provisions of lump sum payment of tax introduced in 1997.

He also announced the starting of a new “self assessment sadbhavna — 2002” scheme to benefit small traders.

The Chief Minister said for 2002-03 the aggregate revenue expenditure would be to the tune of Rs 4899.04 crore of which Rs 3627.77 crore is a non-plan expenditure, Rs 1143.55 crore on plan expenditure and Rs 127.22 crore is expenditure under Centrally sponsored schemes.

For the first time, the members of the Himachal Pradesh Assembly were given compact discs of the Budget, which was presented in the House today. The members of the House have been provided laptops for the purpose.

The CD not only contains the Budget speech of the Chief Minister, but also the economic survey, annual financial statement, explanatory memorandum and department-wise Budget estimates.

There has been a mixed reaction to the budget, with the Opposition describing it as a document of state’s bankruptcy and the ruling BJP hailing it as a common man’s Budget, which will accelerate the pace of development without putting any additional burden on the people.

Mr Virbhadra Singh, leader of the Opposition, said it was a disappointing Budget full of exaggerated claims and offered almost nothing for the development and welfare of the people. The obvious intention of the typical “election year” budget was to please various sections by offering sops.

Mr Jaikrishan Sharma, state BJP President, called it a people’s Budget which would benefit every section of society.

Mrs Vidya Stokes, Pradesh Congress Committee chief, termed it a lackluster Budget, which would further worsen the financial position of the fund-starved state. The belated attempt to please the electorate would not make any difference to the BJP’s dwindling political fortunes.

Budget: BJP too restive

New Delhi, March 7
Finance Minister Yashwant Sinha’s budgetary proposals to increase the price of LPG refill and reduce the income tax rebate from 20 to 10 per cent came in for sharp criticism from his BJP party.

“On behalf of the party, I have requested Prime Minister Atal Behari Vajpayee that the Government reduces the price of LPG and restore the income tax rebate to the original 20 per cent especially upto an income of about Rs 2.5 lakh”, BJP spokesman V.K. Malhotra said here today.

Mr Malhotra said he met the Prime Minister who assured him that he would discuss the matter with Mr Sinha.

The BJP spokesman said the hike in the LPG price and the reduction in the income tax rebate had drawn sharp criticism from the party. PTI