Date:23/12/2008 URL: http://www.thehindu.com/2008/12/23/stories/2008122350320100.htm

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Budget to look into social security

Staff Reporter

The budget will not impose fresh taxes, says T.M. Thomas Isaac

Kozhikode: Finance Minister T.M. Thomas Isaac is planning to do a balancing act in meeting social security concerns and increasing revenue collection in the State Budget for 2009-10 to be presented in the Assembly in early February.

The budget will focus on maintaining equilibrium when strengthening social security and mopping up revenue, Dr. Isaac told a press conference here on Monday.

Another objective would be to achieve a target of Rs.50,000-crore capital in the next fiscal. The existing capital of the State stood at Rs.30,000 crore. However, people would not be burdened with fresh taxes.

The Minister said the participation of the private sector was vital in mobilisation of revenue. The new budget would encourage private investments. The public sector had a limited role in getting funds for projects. The services of various government agencies and quasi-government bodies would be utilised to secure funds.

He said the private sector held the lion’s share of the economy of the State. It certainly needed government control.

But when the government spent one rupee, the private sector should spend two or three rupees. Government funds alone could not meet public requirements.

Dr. Isaac said that encouraging the private sector was not a new thing. It was a reality that the role of private sector was essential to meet infrastructure development.

He said the government did not mind promoting the interest of the private sector. If the non-resident Indians were keen on real estate, that sector could be encouraged.

He said the government had planned to increase public funding. He had met Prime Minister Manmohan Singh and urged him to increase the allocation of the Centre to the State at least by 20 per cent.

He said that steps would be taken to plug the loopholes in collection of taxes. The State was not able to collect 60 per cent of taxes on account of evasions. New measures adopted by the government had compelled traders to comply with the rules.

The government fully backed the housing project of civic bodies of the State. Likewise, it took steps to sustain the public sector units in the State to club schemes with the Central public sectors enterprises, he said.