The Hindu : Huge hike in budget allocation for W. Bengal Cooperatives

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Saturday, Mar 09, 2002

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Huge hike in budget allocation for W. Bengal Cooperatives

By Our Staff Reporter

KOLKATA MARCH 8 . In order to rectify the weakness in ensuring fair returns to the farmer, as against a substantial growth in agricultural production and productivity, primarily due to lack of cold storage facilities, the West Bengal Government has decided to spruce up the entire marketing arrangement through co-operative systems. As per the scheme, thana-level marketing co-operative societies will set up adequate new cold storage facilities and agro-industries on a co-operative basis. Also the co-ordination between the apex and the thana-level marketing co-operative societies will be strengthened.

Presenting the State Budget for 2002-2003, the State Finance Minister, Asim Dasgupta, said the plan allocation to the Department of Co-operatives had been increased by over five times from Rs. 16 crores to Rs. 86 crores in the next fiscal. Of the total, Rs. 20 crores will be paid to the co-operative societies as equity and "an additional sum of Rs. 50 crores will be available from NABARD."

Having failed to achieve the targeted internal procurement of rice and other essential items for distribution through fair price shops in the current fiscal, the Government has also decided to create a revolving fund of Rs. 300 crores in co-ordination with the co-operative banking system for carrying out procurement and distribution of essential items through PDS in the next fiscal.

In the industrial sector, special emphasis has been laid on the growth of medium, small and cottage industries. In addition to the ongoing incentive schemes, special steps are taken to provide loans to the tune of Rs. 200 crores from West Bengal Financial Corporation for development of small and medium scale industries. An additional Rs. 50 crores is made available as loan from the cooperative banking system for the development of handloom and sericulture sector.

Among other things the scheme for reopening the closed industrial units has been further expanded with provision of Rs. 125 crores loan-based assistance. To improve the quality of roads, it has been decided — after due discussion with the PWD, Panchayat and Municipal Affairs Department — that only reputed agencies will be given the contract for development of all future major road projects, "under the condition that no repairs on these roads will be needed in the next three years.''

Mr. Dasgupta said that despite unprecedented floods in nine districts covering roughly 40 per cent of the cropped area, the State had registered 14 per cent growth in production of foodgrains in 2001-2002. But for pulses, the production of rice and wheat surpassed the Ninth Plan targets. The State had reached the foremost position in the country in terms of "total production of vegetables''.

Stating that the State domestic product had registered 7.8 per cent rise in the current fiscal as against the targeted eight per cent, the Finance Minister had set a target for eight per cent SDP growth in the net fiscal. The target will be stepped up to 8.8 per cent during the Tenth Plan period.

On the industrial front 86 projects involving a total investment of Rs. 2194 crores has been invested during the first nine months of the current fiscal. The index of industrial production is 4.6 per cent with a major part of the realised industrial investment has been in the spheres of capital goods and traditional industries. Interestingly, after many years five new jute mills were opened in the State.

Framing the taxation proposals to bridge the gap of Rs. 355 crores revenue deficit , Mr. Dasgupta had imposed a 10 per cent surcharge on sales tax. The essential commodities, however, were exempted from the purview of the surcharge. A turnover tax of 0.5 per cent had also been imposed on resale of goods. Dealers who are liable to pay the sales tax at the first point are exempted from the purview of the turnover tax.

In order to rejuvenate the jute and hosiery industry, sales tax has been reduced from four per cent to two per cent and two per cent to one per cent respectively. While the ambit of luxury tax has been expanded, the entertainment industry had witnessed drastic cuts in entertainment tax to the extent of 30 to 50 per cent, along with hike in exemption limit on the tickets for mass entertainment festivals. The budget envisages a limited deficit of Rs. 4 crores.

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