The assembly poll bound Congress-NCP government in Maharashtra on Thursday presented an additional budget for 2014-15 projecting a revenue deficit of Rs 4,103 crore against Rs 3,017 crore in 2013-14.

The proposed revenue deficit is 0.2% of the gross state domestic product (GSDP). The fiscal deficit of Rs 30,965 crore will be 1.9% of the GSDP while debt stock of Rs 3,00,477 crore will be 18.2% of GSDP. The GSDP at current prices is estimated at Rs 16,53,381 crore.
 

The finance minister has indicated revenue receipts of Rs 1,80,320.50 crore and revenue expenditure of Rs 1,84,423.28 crore. Pawar in his interim budget presented on February 25 ahead of Lok Sabha polls had projected Rs 5,417.28 crore revenue deficit budget for 2014-15.
 

Contrary to expectation especially from the treasury members, the finance minister Ajit Pawar refrained from announcing a slew of populist measures bypassing fiscal prudence due to the recession in economy and constraints on tax collection.
 

However, Pawar has proposed tax exemption worth Rs 962 crore to the traders, farmers and industry. He assured the house that the revenue loss on account of these waivers will be compensated by taking measures for efficient tax collection.
 

The government, in a bid to lure the working class, the government has proposed increase in the Profession Tax limit to Rs 7,500 from Rs 5,000. This will benefit nearly 8,00,000 low wage earners and employees. The mentally retarded persons are exempted from the profession tax.
 

Further, in order to boost the commerce and promote commercial activities, the government has proposed amendment to the Maharashtra Stamp Duty Act so that reasonability can be achieved in the stamp duty levied on instruments executed relating to deposit of title deeds, pawn, pledge or hypothecation. Cap of Rs 10 lakh on stamp duty on pawn, pledge and hypothecation was proposed.
 

The government, in a bid to further encourage tourism, has proposed increase in exemption limit inLuxury Tax to Rs 1,500 at 4% from the present level of Rs 750. Tariff exceeding Rs 1,500 would be taxed at 10%. Further, eligible hotels in B & C zone under the Tourism Policy, 2006 will be exempted from Luxury Tax and it will be in proportionate to increased capacity.
 

Moreover, the government in a bid to give a much needed push for investment in the long pending Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project, the government has proposed exemption in value added tax (VAT) on spares of aeroplanes. The finance minister hoped that it will propel new industry in the underdeveloped Vidarbha region and create new jobs. (Business Standard)