Kolkata: In his first budget after returning to the office, the Mamata Banerjee government has attached to the economic spell to inject cash on grassroots to stimulate demand so that increasing expenses to supply side impulses.
Thus, many government expenditures – 84.5% of state budget expenditures of Rs 3,08,727 Crore – focused on the social and agricultural sectors.
Increased RS 18,650 Crore in budget expenditures over the past year has been fully used to fund a person-oriented scheme such as Lakshmir Bhandar, a basic monthly income plan for women, Krishak Bandhu for farmers, Duardon rations, credit student credit, Swasthya Sathi in addition to the allocation for Covid management , Chairman of the Minister of Mamata Banerjee said on Wednesday.
His government has allocated 10,000 crore rs for the Lakshmir Bhandar scheme.
In addition, to increase demand in the real estate sector, stamp duty on registration has been reduced to 4% of the 6% available for property under RS ​​1 Crore and the rate of circle or market value cut by 10%.
For the transportation sector which is shaken in increasing operating costs due to spiral fuel prices, neglect on road taxes for commercial passenger vehicles has been extended until December 31; Previously negligence until June 30, 2021.
Gathered, the “demand stimulus” was estimated at the RS 15,650 Crore and left the government with a limited budget deficit RS 7 Crore.
The government’s efforts to increase demand have also helped the state maintain a positive growth rate – GSDP 1.2% – when the center has registered the GDP growth rate -7.7% negative.
Based on a positive growth rate, the government has set its own income producer at Rs 75,415 Crore for 2021-2022 even though the ongoing pandemics such as fighting Rs 60,609 Crore at 2020-2021.
“When the whole world follows the model stimulates demand, this center takes back routes to try to increase the supply side by releasing loans.
It also gives 10% tax relief companies for large businesses hope they will invest more.
It doesn’t work because corporates don’t have trust in Government, “said Finance Minister Amit Mitra.
However, increasing public expenditure to increase demand and to protect state plans, however, causes great pressure on the country’s coffers.
The total state debt from Rs 3,36,757crore until March 2021 is projected to increase by Rs 1,15,672 fiscal year 2021-22 while the annual outgo of debt presentation is estimated at RS 61,042 Crore last year against Rs 44,289 last year.
FM shows that the debt to GSDP state ratio is 35.54% when the central debt to the GDP ratio reaches 62.22%.
Partners also show how the center has increased CESS on commodities for years even after the state tax regime turned to GST.
“Under the GST regime, 42% of the tax collected goes to America.
But this does not apply to CESS.
Money is embraced when Cess enters the center.
This center consistently increases CESS components for years from 6% to 11%, “He said.
CM then gives political reasons behind the pressure on state finances.
“We have denied our contributions in terms of stock devolution and tax grants which are constitutional provisions.
This center seizes us amounting to Rs 25,225 Crore in two finance.
The state gets Rs 14,225 Crore less than RS 58,952.55 Crore mentioned in the Union budget in 20- 21.
We also got more crore Rs 11,000 in the previous year.
It is separate from RS 33,314 Crore that the center owes the state in connection with a sponsored scheme centrally, “Banerjee said after placing a budget in the Assembly.