Shimla, June 26
Fresh taxes to mop up additional resources to the tune of Rs 50 crore have been proposed in the Himachal Pradesh Budget for the year 2003-04, presented by Chief Minister, Virbhadra Singh in the Vidhan Sabha today. The Rs 7452-crore Budget leaves a cumulative deficit of Rs 1320.69 crore.

While chemical fertilisers, commercial power, cement, clinker and diesel will become dearer, mobile phones will be cheaper due to changes proposed in the tax structure. Other measures to raise resources include reintroduction of entertainment tax, which was abolished by the previous government and increase in agriculture market fee from 1 to 2 per cent. While raising the rate of electricity duty by 3 paise per unit, the domestic power consumers have been spared.

Several initiatives like transferring of committed liabilities from plan to non-plan and curtailing of unproductive expenditure have been taken to reverse the trend of fiscal deterioration. An MoU with the centre to pave for economic reforms and fiscal restructuring would be signed in a time-bound manner.

Increase in minimum daily wage from Rs 60 to Rs 65 with effect from August 15, introduction of voluntary retirement scheme for government employees, complete ban on polythene bags, reintroduction of lotteries, restoration of the MLA’s local area development fund, crash training programme redeployment programme to improve skills and productivity of daily wage and surplus staff and introduction of Rajiv Gandhi Awas Yozna are some other salient features of the Budget.

The year will open with a deficit of Rs 605.05 crore and financial transactions in 2003-04 are expected to lead to an additional uncovered deficit of Rs 715.63 crore. The cumulative deficit at the close of the year will be Rs 1320.69 crore.

The total Budget of Rs 7452 crore is 21.86 per cent higher compared to Budget estimate of Rs 6115 crore for 2002-03. Out of this, salaries account for Rs 2194 crore (29.5 per cent) as compared to Rs 1911 crore for 2002-03, interest payments are of the order of Rs 1875.74 crore (25.17 per cent) as against Rs 1224 crore for 2002-03 and pensions amounts to Rs 574 crore of (7.97 crore) as against Rs 494 crore for the previous year.

Proposals include levying of 4 per cent sales tax on chemical fertilisers to yield Rs 1.8 crore, road tax on carriage of cement and clinker to be increased from the existing rates of Rs 3 and Rs 3.50 for each slab of 150 km to Rs 4 and Rs 4.50, respectively, to fetch an additional Rs 12 crore, the doubling of market fee from the existing 1 per cent, raising of sales tax on diesel from 12 to 14 per cent and enhancement of electricity duty by 3 paise per unit will bring another Rs 24 crore to the exchequer.

The Chief Minister announced the launching of the Rajiv Gandhi Awas Yojna, filling of functional posts in backward areas, integrated water management programme for 1000 villages and opening of 200 Middle schools 50 High schools and 20 senior secondary schools, besides seven colleges. It has also been announced that at least 25 per cent equity for the state will be kept in all hydel projects henceforth given to the central agencies and even in large private projects.

The public sector undertakings will be reorganised and restructured wherever necessary to bring these in profit, 1000 villages will be taken up for integrated water management, Vidhayak Kshetra Vikas Nidhi Yojna will be re-launched with a provision of Rs 24 lakh for each constituency, polythene bags will be completely banned in the state and 136 veterinary dispensaries will be opened in the milk shed areas.

With a plan size of Rs 1335 crore, there is a substantial emphasis on capital investment Higher priority has been given to social services sector, which accounts for 45.93 per cent of the plan outlay. Agriculture and allied activities have been allocated Rs 104 crore, irrigation and flood control sector has been earmarked Rs 88.14 crore while power sector has been earmarked over Rs 156 crore. Rs 225 crore has been provided in the plan for road and bridges.

The budget proposes a reform-oriented approach to the power sector by targeting better services, and lower cost of power to the consumer. This will be possible only if the state electricity board reduces its commercial losses and improves its efficiency and accountability. The Budget proposes that the outlines of the reform of the sector be drawn up in consultation with all stake holders. The pending cases of widow, handicapped and old-age pension will be cleared in a phased manner. The elected representatives and Panchayati Raj institutions will be brought into the mainstream of development through schemes such as the Vidhayak Nidhi Yojna and by strengthening the technical and administrative back-up for the Panchayati Raj institutions. Lok Mitra Centres would be opened in each district where all government services would be provided under one roof. The government departments will also be held accountable for the services they are expected to provide to the common man through citizen’s charters. At least 10000 houses will be built for the homeless under various schemes in the coming years. Vacancies of functional posts in the areas of health, education, veterinary medicine, irrigation and public health will be filled in a phased manner.

The Animal Husbandry activities will be strengthened further by opening 136 new veterinary institutions.

To tackle the water scarcity problem, an integrated water management programme for 1000 villages will be launched comprising water harvesting, protection of traditional water sources and check dams. Besides, 500 out of the 574 non-covered villages and habitations will be provided potable water.

Roads also get priority and Rs 225 crore have been allocated to this sector under the plan. All sources of funds will be tapped to further strengthen road infrastructure in the state. NABARD and Pradhan Mantri Gram Sadak Yojna, besides the state’s own sources, would be utilised for funding new road construction, world bank assistance, too, is being sought and the state hopes to get nearly Rs 400 crore in the next three or four years for road construction.