Jammu, February 20
The government today announced amnesty schemes for defaulters to liquidate arrears of electricity and water tariff and toll in the zero deficit Budget for 2004-2005 presented by the Finance Minister, Mr Muzaffar Hussain Beig, in the Assembly.
To make liquor cheaper and check its smuggling from other areas, the minister announced a cut of 10 per cent in its sales tax, reducing it to 20 per cent.
It has been proposed to withdraw the concessional sales tax on canteen items available for the defence personnel.
In a bid to check the liquor mafia, Mr Beig announced that the system of fixed licence fee for the country liquor shops would be introduced. The system already exists for the IMFL. The loss caused due to the switchover would compensated by the Centre.
He announced a medical insurance for nearly 8 lakh below the poverty line families.
The minister extended by one year the sales tax holiday on food and eatables supplied or served in any manner in hotels, restaurants and dhabas registered with the Sales Tax Department.
While presenting the Rs 10,679-crore Budget, Mr Beig expressed concern over the rising expenditure on the power sector which had overshadowed the expenditure management. This was the only reason that the non-plan expenditure had gone over-budget.
Although he described the receipts of power tariff as “dismally low”, he announced the amnesty scheme under which the interest chargeable on the arrears payable for the period between January 1990 and December 2004 would be waived along with penalty.
Fifty per cent arrears between January 1990 and December 31, 1997 would be waived.
However, for availing these concessions a condition has been laid that the entire dues payable for 2003-04 shall be deposited by March 2004. The 50 per cent of the cumulative arrears for the period between January 1, 1990 and December 1997 and the arrears between April 1997 and December 2003 would be paid in 12 equal monthly instalments commencing from May 1.
Coming to the rescue of J&K Bank, the minister announced that the bank would now be the recognised institution for financing the annual Plan of the state. Although the centre had agreed to grant Rs 1,200, crore to wipe off the existing overdraft with J&K Bank, the government had decided that it would not be in the interests of the bank. In view of this, a new proposal had been sent to the Union Finance Ministry, according to which government securities worth Rs 900 crore would privately be placed with J&K Bank for tenure of 10, 11 and 13 years bearing a coupon of 50 to 80 basis points above the prevailing market rate.
