Gujarat Budget: No increase in tax burden, DyCM says economy is recovering

Saying that the state's economy is recovering from the impact of the COVID-19 pandemic, Patel, who holds the finance portfolio presented a Rs 2,27,029 crore budget for 2021-22 in the Assembly with a 59 per cent allocation for development works.

Gandhinagar (Gujarat): Gujarat Deputy Chief Minister Nitin Patel on Wednesday presented a Rs 2,27,029 crore budget for 2021-22 in the Assembly with a 59 per cent allocation for development works. Saying that the state's economy is recovering from the impact of the COVID-19 pandemic, Patel, who holds the finance portfolio, did not increase the taxes or introduced new ones.

The budget estimates show a revenue surplus of Rs 587.88 crore. The fiscal deficit which was 1.49 per cent of GSDP in FY 2019-20 is estimated to shoot up to 3.10 per cent in the revised estimates of FY 2020-21 due to the higher government spending and significantly lower revenue due to the pandemic. In the first quarter of the current financial year, the GST income was 40 per cent less compared to the corresponding quarter of the previous year.

Read: Gujarat polls: Voting underway for municipal and panchayat elections

In the second quarter, the income was 15 per cent less compared to the corresponding quarter, but in the third, it was 5 per cent more than the third quarter of the previous year, Patel said. The income of the state from GST in January 2021 was Rs 3,413 crore, the highest for any month till then. In February, it grew further to Rs 3,514 crore, he said.

"The economy of the state is on a recovery path. An increase in GST income gives an encouraging indication of economic recovery," the finance minister said. But the state will face a shortfall of Rs 8,000 to 9,000 crore in GST compensation in spite of a Rs 9,200 crore loan from the RBI.

Read: 'Give AAP five years, you will forget 25 years of BJP', says Arvind Kejriwal

"Gujarat was to receive around Rs 25,000 crore as compensation from the GST Council. Out of which Rs 9,200 crore was given as a loan, while Rs 6,000 crore will be the cess income, so the deficit is of Rs 8,000 to Rs 9,000 crore, which will be carried forward," an official said. Between April 2020 to September 2020 Gujarat attracted foreign direct investment of Rs 1.19 lakh crore, 53 per cent of the total FDI received in the country, Patel claimed.

The minister, who presented his ninth budget, also said the Rs 2,72,029 crore budget was an increase of Rs 9,742 crore over the previous one and the highest ever. Patel announced the start of the second edition of 'Van Bandhu Kalyan Yojna' for the tribal population with an allocation of Rs 1 lakh crore over five years. The scheme was started by then chief minister Narendra Modi in 2007.

Read: BJP should follow Rahul on Emergency, regret Gujarat riots: NCP

The Sagar Khedu Yojna-2 for the fishermen community was allocated Rs 50,000 crore for the next five years. Two lakh youths will be recruited in various government departments in five years, Patel announced. Rs 100 crore has been allocated for a new scheme where 50,000 acres of unproductive land will be distributed to farmers and companies on lease to grow horticultural crops. Rs 25 crore has been allocated to renovate and preserve old schools with historical importance as "heritage schools".

A special Vaccination Cell will be set up to ensure a smooth COVID-19 inoculation drive. Rs 3 crore will be allocated for setting up vaccine stores in nine more districts, Patel said. Announcing funds of Rs 13,493 crore for the Urban Development and Urban Housing Department, he said Rs 900 crore will be allocated for building 55,000 new houses under the PM Awas Yojna (Urban).

Read: Minister lauds BJP's victory in Gujarat polls

The finance minister also announced a new scheme, "MASIHA", under which houses will be constructed for labourers at a concessional rate on a PPP basis. To promote e-vehicles, Patel made a provision of Rs 26 crore to provide a subsidy of Rs 48,000 per e-rickshaw and Rs 13 crore for a subsidy of Rs 12,000 per electric two-wheeler.

Two mega textile parks have been planned in the state, Patel said. Also, a bulk drug industrial park will be set up in Bharuch and a medical device park in Rajkot district. An allocation of Rs 652 crore has been made for the Statue of Unity Area Development. Patel also announced that "whale shark tourism" will be promoted to provide employment in coastal areas. Rs 3 crore will be allocated to develop permanent heliports at Ahmedabad, Somnath, Ambaji, Dwarka, Saputara and Gir.

To carry out a review of existing schemes, the Gujarat Socio-Economic Analytics Centre will be created, the minister said.

Read: Kejriwal roadshow in Gujarat to thank voters