Gandhinagar, 7 March 2013

Gujarat Finance Minister Shri Nitin Patel today spoke in detail on budget proposals. Following are the main points:

-In year 2013-14 budget, Rs 40,574 crore out of total Rs 58,500 crore are proposed for Social services. This will lift state’s human development index. It is state’s responsibility to see that every pie is spent well.

-The central government forms Finance Commission as per section 280-3A in constitution. Finance Commission allocate money to states as per provisions in constitution. 13th Finance Commission has recommended centre to distribute 32% revenue of taxes among states. As per this formula, 25% weightage is given to state’s population, 10% weightage is given to state’s geographical area, 47.5% importance is given to state’s financial situation while 17.5% weightage is given to state’s financial discipline. As per the recommendations of 13th Finance Commission, Gujarat gets nly 3.089% share of central tax revenue. Central government has in its recent budget estimated Rs 10 lakh crore tax revenue. Gujarat will be allocated only 1% of it which is Rs 10,000 crore.

-Every state is permitted for debt which is 27% of total GDP. In year 2011-12 Gujarat government’s debt was only 20.72% while in 2012-13 it was 19.93% and in 2013-14 the estimate is 19.89%. The government has planned to lower down debt in phase manner. The government has proposed Rs 9,000 crore for Sardar Sarovar Narmada Yojana, while Rs 1,000 crore allocation is proposed for SAUNI Yojana. For speedy completion of such major pro-people projects, loan is necessary.

-8 years back Gujarat’s agriculture production was Rs 9,000 crore which is now Rs 90,000 crore. While India’s agriculture growth is 3%, Gujarat has achieved 10% growth.

-What is development? Per head income is true measurement of development. While India’s per head yearly income is Rs 61,564, Gujarat’s average per head annual income in year 2012 was Rs 89,268. If per head income in Gujarat is Rs 30,000 more than India, what does it show? Development only.

-India’s growth rate has been 7.87% while Gujarat’s growth rate has been 10.24%. And therefore Gujarat is India’s growth engine. Gujarat has contributed to upward journey of India’s growth rate.

-Opposition spread false information that taxes on fertilizers are highest in Gujarat compare to other states. Actually most of the states in country have provision of 5% VAT on chemical fertilizers, while in Gujarat it’s 5% including all taxes. Not only this but only first phase selling is taxable. Rest of stages in chain are free from taxes. In India only Uttar Pradesh has such provision, other than Gujarat.

-VAT on petrol in Gujarat is 23%, but in Andhra Pradesh it is 31%, in Maharashtra it is 25%, Rajasthan has 26% and Madhya Pradesh has 27% VAT on petrol.