| News Details |
| JK Finance Minister presents Budget-2012-13 | | Budget with unprecedented concessions to agriculture, tourism, power & other vital sectors | 
Jammu, March 05 (Scoop News) - Finance Minister,. Abdul Rahim Rather today presented zero deficit Annual budget for 2012-13 in the Jammu and Kashmir Legislative Assembly.
In his about 80 minutes long budget speech, Rather said that during the next year’s budgetary proposals the main emphasis has been on to accelerate the momentum generated so far in the process of socio-economic and welfare of the people adding that the ultimate aim is to bring the major indexes of development of our state at par with All India averages.
JK Finance Minister in his speech said that the current financial year has been witness to the consolidation of peace and order in our state. The number of tourists, who visited Kashmir Valley and Ladakh region and pilgrims to Shri Mata Vaishno Devi Shrine and Shri Amaranth Ji Yatra has surpassed all the previous records. These numbers signify the growing confidence of the visitors in the persistent efforts and capability of the government in restoring peace and order. A new era of peace and prosperity for our people has truly begun. The improved environment has also helped us in a more effective implementation of our plan schemes and budgetary programmes of socio-economic development.
He said that the Eleventh Five Year Plan is concluding on 31st March 2012. The next financial year shall be the first year of the Twelfth Five Year Plan. The Planning Commission of India is engaged in the process of finalizing its Mr Rather said that twelfth Five Year Plan document and so are we. It is being hoped that this document shall significantly depart from the current Five Year Plan in its economic strategies. Emphasis on “Faster, Sustainable and More Inclusive Growth” has been clearly spelt out in the Approach Paper, unfolded by the Planning Commission. The contours of our successive annual plans shall become clear only after the Twelfth Five Year Plan document takes its final shape. Nevertheless, we hope that the finalization of the next year’s annual plan for our state shall be taken up by the Planning Commission of India in the coming few months.
At the national level, there has been a setback in the process of economic revival due to deterioration in the global economic scenario. It will cast its shadow on the national approach to the plan process. We may also be affected indirectly. However, in our State, we start with the advantage of the consolidation of peace and economic growth. Building further on this consolidation, we intend to incorporate new strategies in our next year’s plan of action. We are hopeful that our suggestions shall receive due attention of the Planning Commission at the time of finalizing our plan.
We have maintained our journey on the path of structural reforms and sound management of State finances through the last three years. These are yielding results now. We are determined to continue our march towards a better future with renewed vigour.
He said that ,I would like to submit here that the three previous budgets presented by me before this August House, were much more than mere statistical statements of income and expenditure. They were reflective of a pre-meditated and progressive plan of action to trigger, stimulate and sustain socio-economic growth and ensure the welfare of the people of our state. All these action plans were conceived, formulated and executed by the government under the able, determined and courageous guidance of our young, energetic and dynamic Chief Minister Omar Abdullah.
Through my next year’s budgetary proposals, I have tried to accelerate the momentum generated so far in the process of the socio- economic development and welfare of our people. My ultimate aim is to bring the major indices of development of our State at par with the All India averages and then try to take them farther.
The next year’s budget is also significant in its purely chronological context. It is going to be the fourth consecutive budget of the present coalition government after it has, successfully, completed half of its popularly mandated tenure under the dynamic leadership of Omar Abdullah, marked by his exemplary courage, vision and statesmanship.
Highlights of BUDGET 2012-13
OUTSTANDING ACHIEVEMENTS:
Fiscal Deficit in 2010-11 at 4.3% of GSDP against a target of 5.3%
fixed by 13
th
Finance Commission.
Tax Revenue Collection in 2011-12 to touch ` 4800 crore; a 38%
growth over the previous year.
Collections under Commercial Taxes alone up by ` 1057 crore;
improvement of 42%.
GSDP in 2011-12 at 6.8% as compared to 6.9% at national level.
WELFARE INITIATIVES:
` 130 crore for return and rehabilitation of Kashmiri migrants.
Provision of ` 46 crore for completion of two room tenements for
Kashmiri migrants under PMRP.
` 8 crore set apart for migrants’ group mediclaim insurance.
` 90 crore for Sher-e-Kashmir Employment & Welfare Programme for
the Youth.
Provision of ` 26 crore to meet cost of VR/GHS in PSUs.
` 21 crore for welfare of Scheduled Castes and OBCs.
Rehbar-e-Talim to get uniform remuneration of ` 3000/- per month
from 1
st
April, 2012.
Remuneration of Nambardars and Chowkidars enhanced to ` 751/-
and ` 750/- per month from 1
st
April, 2012.
` 40 crore under Tribal Sub-Plan.
A provision of ` 18 crore for welfare of Gujjars & Bakerwals.
` 16 crore for welfare for Pahari Speaking people.
` 49 crore under Rashtriya Shram Vikas Yojana.
CHILD & WOMAN EMPOWERMENT:
` 5 crore provision for ‘Beti- Anmol’ scheme.
` 10 crore for empowering skilled young women.
` 16 crore for training of women in Handicrafts and Handlooms trade.
Housewives not to pay VAT on domestic cooking gas.
Girl students in 97 Educationally Backward Blocks belonging to BPL
families exempt from making contribution to local funds of the
concerned Govt. Higher Secondary Schools.
________________________________________
Woman candidates belonging to BPL families seeking Govt. jobs
exempt from payment of application fee and/or examination fee to
Govt. Recruitment Agencies.
INITIATIVES IN AGRICULTURE SECTOR:
Exemption from levy of VAT on all types of chemical fertilizers, bio-
fertilizers and micro - nutrients.
Fungicides also exempt from levy of VAT.
Insurance services covering agriculture, horticulture crops exempt
from service tax.
Insurance services providing cover to cattle wealth, poultry, birds,
fish, sheep, goat and dairy units also exempt from service tax.
` 721 crore for expanding irrigation network in the State.
Investment of ` 343 crore in Agriculture Sector for improving seed
replacement rate, farm mechanization, post harvest management and
marketing facilitation of fruit, vegetable, commercial floriculture and
sericulture produce.
PRIs EMPOWERMENT:
Devolution of ` 195 crore under 13
th
Finance Commission, ` 53 crore
under State Plan and ` 5 crore under Non-Plan to PRIs. Total
availability of about ` 1531 crore for PRIs including funding under
various Central Schemes.
Earmarked provision under Thirteenth Finance Commission and MG-
NREGA to address accommodation deficit of Panchayat Ghars.
INCENTIVES FOR TOURISM SECTOR:
List of areas and locations qualifying for incentives under ‘Tourism
Package’ liberalized and expanded.
30% capital outright investment subsidy on fixed assets created by
new investments subject to a maximum of ` 30 lakh.
Capital investment subsidy limit raised to ` 100 lakh in case of
prestigious units investing ` 25 crore or more.
Addition of minimum one third of existing bed capacity by units to
also qualify for capital subsidy.
Full reimbursement of cost of preparation of DPRs.
Stamp duty remission on mortgages to the extent of ` 50,000/-.
Insurance cover cost subsidized upto 60%.
Cost of DG Sets subsidized upto 75%.
Paying Guest Houses eligible for 40% Capital Subsidy.
________________________________________
50% subsidy on equipment for adventure tourism, kitchen and
related appliances.
50% subsidy also on tourist coaches, air-conditioning, office
automation.
Reimbursement of 50% cost incurred on Managerial training.
TAX CONCESSIONS:
ATTA, MAIDA, SUJI, BESAN, RICE, PADDY outside VAT net for one
more year.
Tax concessions to industrial units extended for further one year.
Concessions and exemptions enjoyed by Tourism Sector to continue
for yet another year.
Besides exemption of Water Usage Charges for ten years,
Independent Power Producers also to enjoy exemption of entry tax
on import of all power generation and transmission equipment,
building material and construction equipment for the hydel projects.
All IT institutes, IT Coaching Centres and IT educational institutions
brought outside the perview of service tax.
Service tax exemption for private hospitals, nursing homes, diagnostic
centres, pathological services to human beings and animals.
Exemption benefits passed on to the suffering patients.
Electric blankets exempt from levy of VAT.
‘Job Works’ done by registered industrial units for other registered
industrial units in the State exempt fully from VAT.
Scientific equipment, critical chemicals and reagents used by Central
and State Govt. Research & Development Institutes insulated from
charging of VAT.
Stamp duty on hypothecation deeds reduced by half and maximum
limit reduced from ` 5 lakh to ` 50,000/-.
Maximum limit of stamp duty on equitable mortgage also reduced
from ` 5 lakh to ` 50,000/-.
OTHER CONCESSIONS:
Tax Clearance Certificate given to Contractors to remain valid for one
full financial year and not NIT specific.
Payment of Security and registration renewal fee by contractors
waived off.
In view of indigent circumstances of beneficiaries, over 100 old
defarcation cases by SC, ST and physically challenged groups to be
given amnesty by State Financial Corporation.
Grievance Redressal Committee of Govt. functionaries and
representatives of Trade Bodies for resolution of tax law related
conflicts.
CONSIDERATION FOR YOUTH AND STUDENTS:
Desktops, laptops, palmtops etc. exempt from VAT.
Computer peripherals like pen-drives, CDs, memory cards, chips
headphones, electronic diaries, computer cleaning kits and other IT
peripherals also exempt from VAT.
Stationery items like adhesive solutions, gum pastes, lapping
compounds, epoxies, resins, tapes, tags, markets, sealing wax, paper
envelopes, pencils, crayons, highlighters, erasers, sharpeners, pencil
boxes, ‘
takhti’
etc. exempt from levy of VAT.
ADDITIONAL RESOURCE MOBILISATION:
VAT on sales of cigarettes and other related products further hiked to
30%.
Sales Tax on IMFL, beer etc. also enhanced to 30%.
Security and Placement Services, Pandal and Shamiana Services,
Annual Maintenance Contracts brought under Service Tax net.
Five paisa per kilogram increase in the rate of toll.
INFRASTRUCTURE DEVELOPMENT:
` 250 crore for special development needs of Jammu and Ladakh
regions.
Provision of ` 194 crore under Constituency Development Scheme.
Investment of ` 455 crore in Energy Sector.
` 682 crore for Roads infrastructure.
` 191 crore for construction of new/model degree colleges.
Availability of ` 534 crore worth upgradation grants under 13
th
Finance Commission for various development activities.
` 369 crore for ERA projects.
` 105 crore under PMRP for completion of Mughal Road.
` 148 crore for development of Leh and Kargil Districts.
A provision of ` 125 crore for Border Area Development.
OTHER SALIENT FEATURES:
Estimates of Total Receipts (TR) – ` 33853 crore.
Estimates of Total Expenditure (TE) also at ` 33853 crore.
________________________________________
5
Revenue Expenditure (RE) including Security Related Expenditure
(SRE) – ` 24990 crore, Capital Expenditure (CAPEX) – ` 8863 crore.
Non Plan Revenue Expenditure (NPRE) consumes ` 23548 crore.
Expenditure on salaries and pensions gallops to ` 16140 crore.
A provision of ` 903 crore to disburse second installment of
Pay/Pension revision arrears.
Annual Plan 2012-13: ` 7300 crore. PMRP at ` 700 crore.
Plan Revenue Expenditure (PRE) estimates at ` 1412 crore. Plan
Capital Expenditure (PCE) ` 6588 crore.
State share of ` 1000 crore in Plan to access over ` 2500 crore
funding under CSS and various flagship programmes.
` 50 crore provision in 2012-13 for 10% Employer’s share under New
Pension Scheme introduced from January, 2010.
` 658 crore provision for Urban Local Bodies, Universities and other
autonomous bodies / institutions for supplementing their revenue
expenditure requirements.
Further ` 2 crore contribution to the corpus of Cancer
Treatment and Management Fund.
Growth target of 7.5% for 2012-13
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