Date:16/03/2004 URL: http://www.thehindubusinessline.com/2004/03/16/stories/2004031601361700.htm

Back No fresh taxes in Bengal's vote-on-account

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The West Bengal Chief Minister, Mr Buddhadeb Bhattacharjee (right), and the Finance Minister, Dr Asim Dasgupta, going through the vote-on-account budget papers in Kolkata on Monday. — Parth Sanyal

Kolkata March 15

THE West Bengal Finance Minister, Dr Asim Kumar Dasgupta, on Monday moved a vote-on-account for the first four months of 2004-05, presenting a thumb-nail sketch of the State's finances for the next fiscal. He refrained from making any new announcements either on tax proposals or any new schemes.

The 2004-05 Budget showed a lower deficit of Rs 85 crore for 2004-05 against the Rs 92-crore revised estimate for the current fiscal.

Speaking to newspersons later, he said that the financial requirement for the first four months of the next fiscal would be moved in the Assembly on Tuesday.

He retained the option of making a full-fledged presentation after the elections, but refused to say anything definite in this regard.

The Minister said that although no new taxes or any concessions were being proposed in this Budget, it would still be possible to increase tax revenue by 18.4 per cent from Rs 8,825 crore in the current year to Rs 10,449 crore in the next year through better collections.

"The measures taken to tackle West Bengal's financial crisis have begun to bear fruit. Through a host of measures including savings in revenue through economy measures, reduction in interest burden and cap on growth in payments of salaries and pension, the State has been able to improve its financial health."

Dr Dasgupta expected tax revenues to increase by 25.2 per cent in 2003-04 through improved collection of sales tax, motor vehicle tax, stamp duty and land revenue.

He said that it has now become possible to hem in the rate of growth of interest payments since the high-cost loans (at about 18 per cent) were now reaching maturity.

He added that expenditure on subsidies would also be reduced. Direct subsidy to the transport sector has been reduced from Rs 350 crore to 307 crore this year.

Dr Dasgupta said that the main thrust of the Budget was to implement a programme of alternative economic reforms, to create employment potential, and to increase plan expenditure while tackling the economic crisis precipitated by the `policies of the Centre'.

The Budget also projected a 4.7 per cent increase in the total expenditure to Rs 38,518 crore next year, with a 37 per cent increase in Plan expenditure.