BUDGET HIGHLIGHTS OF

Transcription

1 BUDGET HIGHLIGHTS OF Economy and Finance GSDP : Rs 1,94,009 crore Real growth rate: 8% Nominal growth rate : 13% Debt stock is less that 30% of GSDP Interest payment is less than18% of GSDP Fiscal deficit is Rs 5,500 crore and not more than 25% of TRR Borrowings limited to 3% of GSDP ICRA rating of LA+ CRISIL rating of AA- Fiscal Reforms Fiscal Policy Institute established focus on smooth but rigorous tax administration Arrack prohibition from July 07 potential revenue loss: Rs 1300 cr Lottery free zone from potential revenue loss : Rs 250 cr CST reduced from 4% to 3% programme performance budget in Health and Family Welfare and Education department

2 2 Amendment to KTPP Act to support e-procurement introduction of title insurance Collection of Major Taxes Tax Commercial Taxes Target for Projected Collection as on Past trends % growth over State Excise Motor Vehicles Stamps & Registration Land Revenue Total Resource Mobilisation, enhancement, rationalisation and simplication of proceures COMMERCIAL TAXES: VALUE ADDED TAX: RELIEFS Tax exemption on rice, paddy, wheat, products of rice and wheat and pulses continue for one more year. Reduction in tax to 4% from 12.5% on rubber tyres and tubes of tractors, software licences and used motor vehicles. A few more goods to be added to the list of industrial inputs and capital goods taxable at 4%.

3 3 Purchases of developers of special economic zones and units located there exempt from tax Contractors permitted to collect composition tax Minimum amount to be fixed for issue of tax invoice Reduction in penalty for delay in filing of returns Permission for digital signature on tax invoices Increase in the limit for audit of accounts Reduction in the penalty for non-maintenance of correct accounts Deduction to the main contractors on amounts payable to sub-contractors Modification in the rate of input tax rebate on petroleum products and inter-state stock transfers Permission for Cost Accountants to audit accounts of dealers Permission for dealers engaged in more than one type of business to opt for composition scheme RATIONALIZATION MEASURES: Levy of tax at 20% on molasses, ethyl alcohol, denatured spirit and rectified spirit Abolition of Authority for Clarification and Advance Rulings Withdrawal of input tax rebate on cement bricks. Option for payment of tax on sale of medicines based on tax inclusive maximum retain prices

4 4 SALES TAX: RELIEF: Permission for issue of self declaration for purchase of diesel at concessional tax of 4% for captive power generation ENTRY TAX: RELIEFS: Tax exemption on goods returned which were sent outside the State on inter-state sales and stock transfer Reduction of entry tax to 1% on crude oil PROFESSIONS TAX: RATIONALISATION MEASURES: Provision for deduction of tax at source in respect of certain persons Provision for submission of annual return by self employed persons Permission for filing of one application for registration by employers having multiple business premises. ADDITIONAL RESOURCE MOBILISATION MEASURES: Following classes of persons brought under the tax net Contractors providing vehicle parking services Massage parlours including Ayurvedic massages Selling Agents, consultants and brokers of used motor vehicles Persons acting as agents of companies Income tax assesses not specified in professions tax schedule.

5 5 Withdrawal of tax exemption on persons running education institutions and tutorials ENTERTAINMENTS TAX: RELIEFS: Tax on multi system operators reduced from 10% to 6% Tax on amusement parks reduced from 20% to 10% Dramas exempt from entertainments tax LUXURY TAX: RELIEF: Tax only on actual amounts of room rent collected by hotels Excise To abolish the sale of arrack in the entire State with effect from To entrust specific responsibilities on Excise and Police officials to control the offences committed in the Excise sector. Police Department to deploy special staff and to equip with additional vehicles and other communication equipments, Rs crore earmarked Rs crore for Excise Department to provide additional staff, vehicles and other communication equipment. Rs.10 crores earmarked to give wide publicity by the department through audio, visual, electronic and print media.

6 6 All the arrack shops will be closed. And in place of such closed shops, no new licenses for sale of Indian made liquor in retail will be granted. Bar (CL-9) licenses will be issued to hotels depending on demand under the existing rules only. To abolish the permit fee of Rs.50/- levied for grant of permits to transport IML and spirits with effect from And to simplify the procedure for grant of transport permits. Unauthorisedly manufactured liquor and spirits will be confiscated and destroyed. To abolish the levy of fee on Rectified spirit, Denatured spirit and Denatured anhydrous alcohol (ethanol) supplied to oil companies for the purpose of mixing with petrol with effect from Simplify the existing procedure for declaration of price of liquor. To dis-continue the litre fee levied on the liquor imported from outside India. To permit the transfer of CL-6A (Star Hotel licence) licences just like CL-2, CL-7 and CL-9 licenses by bringing in an amendment to the rules. To increase the licence fee levied in case of Retail Shop (CL-2), Clubs (CL-4), Occasional licences (CL-5), Star Hotel (CL-6A), Hotel and Boarding Houses (CL-7) and Refreshment Rooms (Bar) (CL-9) to be effective from Stamps and Registration: To introduce suitable e-stamping system in the State on pilot basis.

7 7 To extend concession of 0.5% on Conveyance Deeds backed by valid Title Insurance policy, issued by an Insurance Company recognized by Insurance Regulatory and Development Authority. Computation of stamp duty on Awards, Trust Deeds involving Transfer of property, Development Agreements and Power of Attorney for development of commercial and residential properties on the market value of the property. Necessary amendments will be made to Karnataka Stamp Act. A ceiling limit of Rupees Five lakh on the stamp duty will be fixed for Deposit of Title Deeds for the purpose of development of immoveable properties for commercial use and Rupees Fifty thousand for the purpose of Residential use and advalorem rate for any other purpose. Anomaly in Article 20(4) in respect of Amalgamation of Companies would removed. A new provision to levy Stamp Duty on Amalgamation of Subsidiaries with parent companies and Demergers, would be made to prevent evasion. Definition of family is extended to Brothers and Sisters. Fix the Stamp Duty on different kinds of Development Agreements on the market value of property with a cap of Rupees One lakh fifty thousand. Anomaly in Article 45(a)(i) and (ii) of the schedule would be rectified to prevent misinterpretation and evasion of duty.

8 8 Constitute Kaveri Monitoring Cell. To establish Data storage and Disaster management Center at Bangalore and Dharwad for storage and preservation of permanent records. TRANSPORT DEPARTMENT Proposed to mobilize additional revenue of Rs. 75 crores:- By enhancing the tax on two wheelers and Motor Cars By levy of tax on the vehicles temporarily registered. By enhancing the tax on the Contract Carriages, both ordinary & luxury vehicles. By enhancing higher rate of tax on campers vans. By enhancing tax on multiaxled and articulated vehicles By covering sleeper coaches to levy tax on them. to enhance the rate of tax on the vehicles run on Special Permits. To enhance the rate of tax on Tourist Vehicles. To levy Life Time Tax on Goods Vehicles. By enhancing the rate of tax on the Private Service Vehicles obtained by the companies on lease basis. By enhancing the tax rates of Tourist Vehicles of other States plying in our State for 7 days & 30 days.

9 9 To Initiate Karnataka bio fuel programme Karnataka-the global seed destination Karnataka agriculture forward markets commission o engage in trading of instruments related to agriculture o act as interface between farmers and commodity markets Karnataka agriculture trade fair authority o Popularize processing, storage, marketing technologies relating to agriculture, horticulture, animal husbandry, sericulture, fisheries To Establish and Implement Karnataka Horticulture University, Bagalkot Horticulture College, Bidar Dairy science College, Gulbarga Centre for toxicological studies, Shimoga Centre for vaccine studies, Belgaum Institute of wildlife veterinary studies, Madikere Bangalore Diabetic Centre Karnataka Nephro-Urology Institute Music University at Mysore Centre for Hindustani Music at Dharwad Yakshagana academy at Bangalore

10 10 Karnataka State Institute for Labour Studies in association with the NLSUI Welfare fund for tailors Upgradred of 4 polytechnics to engineering colleges Sarva Shiksha Abhiyan at outlay of 700 cr Extend Akshara dasoha upto 10th std Suvarna Grama at outlay of 400 cr Drinking water programme at outlay of 420 cr Jal Nirman Project at 311 cr Infrastructure in bus stand at 100 cr 8 New ITI's exclusively for women Tumkur as a satalite of Bangalore 5th Pay Commission To Impliment Dr. Nanjundappa s Committee Recommendations redressal of regional imbalances 8 year Special Development Plan Rs 1571 cr for high powered committee to oversee and review progress Amount to be allocated thus: 50% to most backward talukas 30% to more backward talukas 20% to backward talukas

11 11 Loan Waiver Scheme for Short term crop loans availed from upto limit of Rs at the time of sanction and outstanding as on , waived those above Rs availed from , can avail complete interest waiver, if total principal outstanding, is paid by for those who have repaid current crop loan from , to December 06 for loans availed upto a limit of Rs from , amount repaid be converted into 3 year fixed deposit payable after 3 years with 4% interest. Sandhya Suraksha Scheme New social security pension to be launched on 29 July 07. Rs 400 monthly payment to citizens above 60 years of age. likely beneficiaries-small and marginal farmers, labourers from un-organised sector annual income of both spouses not to exceed Rs declaration of not having combined deposit of more than Rs those availing any public or private pension ineligible scheme to cost Rs 250 cr in to be implemented by the Directorate of Social Security and Pension, to be established for this purpose

12 12 OAP, PHP, DWP to be increased to Rs 400 per month from Rs 200. Freedom fighters pension increased to Rs 3000 from Rs 1500 Goa Freedom fighters pension of Rs 2000 Bhagyalakshmi Scheme More than beneficiaries selected Registered Trust established to manage the funds till the girl child turns 18 years of age so as to get maximum returns Rs each has been deposited in the name of every eligible girl child Allocation Rs 225 cr for continuation of the scheme in TO IMPLIMENT ADARSHA VIVAHA SCHEME new scheme of Rs to brides taking part in mass marriages. o amount will be in the form of a 2 year fixed deposit in the name of the bride o A minimum of 25 marriages at a time AMRUTHA SCHEME new dairy scheme for widows destitutes and devadasis. financial assistance to buy milch cow Rs as subsidy and Rs as loan KMF to provide backward and forward linkages

13 13 To Establish Health City to be established at Ramanagaram medical college, dental college, nursing college to be established 250 bedded super speciality hospital Total cost Rs 283 cr Medical university to invest Rs 150 cr over next 3 years Govt. to invest Rs 133 cr in next 3 years Rs 43 cr allocated in To Start Evening OPD s in Government Hospitals to be introduced in OPD s to be open between 5.30 to 8.30pm enable working people to access health services after work hours Rs 300 honorarium per day to doctor and Rs 100 to nurse participating personnel can participate to a limit of 5 days private practitioners may also join. first preference to Govt. Doctors To impliment Student Centric Grant-in-Aid in secondary education system performance linked students pass result must be above 30% to be eligible points given on the basis of performance on certain parameters which is then converted to cash parameters Quality of result, SC/ST, BC, Min, Women enrollment, Kannada medium, location of school etc.

14 14 To Establishment Social Welfare Programme 59 Morarji Desai Residential Schools 210 new pre and post-matric hostels o 50% post matric hostels reserved for women Rs 144 cr for Gangakalyana scheme New scheme for nomadic and semi nomadic tribes Employment opportunity to disabled to be expanded To Create 4 Tourist Circuits 1. Belur-Halebid-Shravanabelagola-Madikere-Mysore- Srinrangpatna-Somanathapura-Shimsa 2. Shimoga-Tirthahalli-Agumbe-Jog-Mangalore 3. Hampi-Badami-Ihole-Patadakallu-Kudalasangama- Bijapur 4. Mangalore-Udupi-Dharmasthala-Kollur-Maravante- Murudeshwara-Gokarna infrastructure to be created through PPP in 2 places per circuit Rs 40 cr for viability gap funding in Develop Nandi hills and Kemmanna Gundi on PPP model Out Lay on Industry and Infrastructure Rs 100 cr for industrial infrastructure development Rs 75 cr for Suvarna Kayak scheme

15 15 Clear entire portion of backlog of industrial subsidy Bangalore International Airport Project nearing completion Namma Metro Project on schedule Greenfield airports to be developed 22 helipads for connectivity to remote areas Rs 150 cr for railway projects Special Schemes for Bangalore special development grant of Rs 250 cr to BBMP Rs 415 cr to Cauvery WSS stage 4 phase 2 to supply water to city Rs 200 cr for development of roads Rs cr for Bangalore International Airport Rs cr for Metro Rail Project Rs 800 cr under JNNURM new general hospital at Indiranagar establish Bangalore developers, builders and house owners repository o PPP models o smoothen land based transactions o voluntary Out Lay on Public Works Rs 300 cr for maintenance of major district roads Rs cr for capital works on MDR s Rs 108 cr for upgradation and and maintenance of SH through KRDCL

16 16 Rs 300 cr for capital works of KRDCL Rs 251 cr to KSHIP for balance works Rs 135 cr for road works under RIDF Rs 190 cr for public building construction Total allocation of 2253 cr Scheme under Home Depatment Rs 35 cr to implement B- trax for regulating vehicular traffic in Bangalore Rs 35 cr for K Safe 2010 o Establish fire stations at taluka headquarters Video conferencing facility between 12 prisons and 12 Court rooms * * * * *