From the States : Gujarat Budget 2006-2007

Global perspective and local prosperity
Innovative concept in Gujarat Budget
By Dr. Bharat Gariwala

Gujarat Chief Minister Shri Narendra Modi presented the state Budget for 2006-07 not only with an overall surplus consecutively for the third year, but also showing Revenue Surplus, for the first time. The budget has a fresh air of thoughts as, instead of the routine allocations of funds and non-attainable premises, it is full of concrete long-term programmes for every sphere civic amenities and state’s all round progress for the next 10-20 years.

Entire Gujarat to be developed

The budget emphasizes the need to meet with global challenges in trade, industry and infrastructure. The budget has revealed new features in this direction. The most far-reaching decision is to create Gujarat Coastal Area Development Board for the underdeveloped 1600 km. of coast-line of Gujarat. Another far-reaching announcement is creation of Gujarat Urban Mission for well-planned development of all 250 small and big towns/cities of Gujarat. In addition to several other programmes for the downtrodden Scheduled Castes, Scheduled Tribes and backward classes, an innovative approach has been adopted to remove the regional imbalance in the backward talukas by bringing them into the development mainstream.

Global perspective

The announcement to make Gandhinagar a fully gas based capital, bidding for petroleum in other countries and converting vehicles into CNG for cleaning the Environment, will put Gujarat on International map. A vibrant investor’s conference-III has been planned in 2006 for attracting foreign and national investment. It is expected to go a long way in the overall development of the State.

The State has declared 2006 as a Tourism Year and taken several measures, like cut in entertainment and hotel luxury taxes, incentives to establish hotels at places of tourist attraction etc. to promote tourism. These steps have been welcomed by the trade and industry.

Quality of Education

As everyone knows, the standard of education in schools all over the country is not up to the international levels. Shri Modi has, therefore, announced that now funds for schools will be related with quality of education they provide and accordingly, schools will be graded, so that the future generation is equipped to face competition in the world.

Innovative Steps

The budget has made the highest allocation of funds for water-linked schemes of Sardar Sarovar Project and Sujlam Suflam Yojana, to the tune of Rs. 4000 crores. A Bio-fuel Mission will also be set-up for farming of Ratan-Jyot. There are a number of other innovative measures, like Tapi Riverfront Yojana to beautify Surat City, to re-start all closed Milk Dairies in Saurastra with the help of National Dairy Development Board, to amend A.P.M.C. Act to make APMCS more useful to farmers in post-harvest activities, to undertake total sanitation programme in Gujarat, to increase new power capacity of 8351 MW, to develop new ports and to start Evening Courts to speedily dispose of the pending court cases. There are so many such other provisions

Prudent Financial Management

The budget has given tax concessions of Rs. 341 crores on Stamp duty, Vehicle tax, Hotel room tax, electricity duty, Entertainment tax etc. In the last 4 years, Gujarat has given a total of over Rs. 1000 crore tax concessions to people and not imposed a single paisa of tax. However, the tax realisation has doubled and the budget has become surplus. VAT has been introduced now from April 1, 2006 in keeping with all the requirements of trade and Industry.

This budget, the first one by Shri Narendra Modi, has been welcomed by all – the Media, the Trade and Industry organizations and the people of Gujarat.