The Gujarat government did not impose any additional tax burden on citizens in a poll year as it presented the £24.39 billion budget in the State Assembly. It also did not provide any new sops as well.
Finance Minister Kanu Desai, who presented his first budget, called it a progressive one. Desai told the assembly that Gujarat was poised to register a 13% Gross State Domestic Product (GSDP) growth despite the pandemic. He also said that the state’s per capita income has jumped from Rs 19,823 to Rs 2,14,809 in the last 20 years.
Social sector focus
Desai’s budget has earmarked £497.6 million for women and child development, a 42% rise in allocation for the sector. Fund allocation was increased for various schemes related to nutrition, education and Anganwadi services. A provision of £81.1 million was made for the Suposhit Mata Swashth Bal Yojana which provides one kg tur dal, 2 kg gram and a litre of edible oil for free for 1,000 days to pregnant and lactating mothers.
The budget has allocated £3.48 billion for the education sector of which £118.8 million has been allocated under Mission Schools of Excellence to provide infrastructural facilities in schools and bring changes in the education system. It also envisages building 10,000 classrooms in the next year at a cost of £93.7 million.
The government has also proposed a 10% increase in budgetary allocation for the social justice and empowerment department. The monthly pension paid to beneficiaries in the 60 to 80 age group under the Niradhar Vrudh Pension Yojana has been increased to Rs 1,000 from the existing Rs 750. The monthly pension paid to beneficiaries above 80 years of age will be increased from Rs1,000 to Rs1,250.
Professional tax exemption
The government has exempted those earning up to Rs 12,000 per month from professional tax. This has been the only relief in terms of tax in the budget. This will benefit around 15,00,000 people and provide relief of £19.8 million to them. The largesse will result in a loss of £10.8 million to the state exchequer.
