Madhya Pradesh Budget

Development oriented budget
that cares for the common man
From Our Special Correspondent

MP Finance Minister, Shri Raghavji, has presented 2006-07 Budget showing a budgetary deficit of Rs. 48.55 crore. With this Shivraj Chauhan Government has taken another step forward in fulfilling the promises it made to the people. The Budget reflects government’s priorities and determination to pay special attention to connecting more villages with construction of more roads, increase the irrigation facilities to farmers, to step up power generation, and give a fillip to education and health services in the State.

The total revenue receipts for the year 2006-07 are estimated to be Rs. 23480.29 crore, comprising of Rs. 10029.46 crore State’s own tax revenue, Rs. 7015.17 crore of Central Tax Devolution, Rs. 2059.08 crore of State’s non-tax revenue and Rs. 4376.48 crore of Central Grants. The State’s own tax revenues are estimated to grow at 12.27% compared to 2005-06 (RE).

Better fiscal management

With better fiscal management the Government has been able to achieve a revenue surplus of Rs. 970.22 crore against a revenue deficit of Rs. 25.49 crore for the year 2005-06(RE).

The plan expenditure for the year 2006-07 is Rs. 10397.74 crore as against Rs. 9605.52 crore for the year 2005-06(RE). The plan expenditure consists of Rs. 9069.62 crore of State Plan for the year 2006-07. The Tribal Sub-plan for the year 2006-07 is Rs. 1963.40 crore as against Rs. 1773.10 crore for the year 2005-06(RE). The Special Component Plan for the year 2006-07 is Rs. 102.27 crore as against Rs. 920.83 crore for the year 2005-06(RE).

Irrigation

Rs 1908 crore has been provided for 275 irrigation projects. During the first three years of Tenth Five Year Plan, about 2.82 lakh hectares of irrigation potential has been created and by June 20066 an additional capacity of 1.80 lakh hectares would be generated.

Education

With emphasis on primary education, under the Sarva Shiksha Abhiyan an annual plan for Rs. 1800 crore is envisaged, which is more than Rs. 507 crore compared to last year. To improve attendance and retention in the school, provision under the Mid-day meals programme has been enhanced. Girls studying in I - VIII grades in all the remaining 29 development blocks would be provided free school uniform. All the girls admitted to IX, residing in the villages, not having high school would be provided free bicycles. Under this scheme about 79,000 girl students would be benefited during the year 2006-07. For the Students belonging to families below poverty line free textbooks would be supplied under Book bank scheme. It is proposed to up-grade 50 high schools and 174 middle schools. For the construction of these schools Rs 19.48 crore has been provided.

It is proposed to upgrade 38 pre-matric tribal schools to Schools of Excellence.

It proposed to set up two tribal hostels with a capacity of 50 seats each. In order to encourage education among girls, 50 new pre matric hostels would be set up and the capacity of present pre-matric hostels would be increased by 2000 seats. It is also proposed to take up construction of buildings for 25 high schools and 50 higher secondary schools.

Health

In order to ensure institutional deliveries 1200 posts of staff nurses and another 1200 posts of ANMs would be created and filled up to provide round the clock delivery facility. Another 1000 ANM posts would be created to ensure at least one ANM in each inaccessible sub-health center. A provision of

Rs. 5.29 crore has been made to upgrade buildings of 11 district hospitals and another Rs. 45.13 crore for construction of 161 primary health centers and 366 sub-health center buildings. A new Medical College in Sagar would be established.

Agriculture and rural development

To increase people’s participation in development activities it is proposed to constitute Jan Abhiyan Samitis at the district level. An amount of Rs. 15 crore has been provided for Gokul Gram Yojana.

Employment guarantee scheme

This programme is being implemented in 18 districts from 2nd February 2006 with a State share of Rs. 140 crore.

Industry

A private investment of Rs. 1500 crore has taken place in heavy and medium industries in the State. To facilitate the establishment of auto testing track in Pithampura, 4,000 acres of land would be provided. Four units with an investment of Rs. 200 crore have been started in the Special Economic Zone.

An amount of Rs. 65 crore has been provided for the development of Bhopal, Jabalpur, Indore and Ujjain under Jawaharlal Nehru National Urban Renewal Mission.

A provision of Rs. 5 crore has been made for the Deendayal Antyodaya Mission under which financial assistance is provided for marriage of girls, who are orphan and /or from poor families, widows and abandoned.

Panchayat Puraskar Yojana

An amount of Rs. 2.40 crore has been provided to reward Panchayats free of crime and where the Gram Panchayat representative are elected on a consensual basis due to community effort,.

Government employees and pensioners would be given additional 3-percentage points D.A. and relief respectively and would be given additional installments during 2006-07 as per revision of rates announced by the Central Government.

Shikhsha Karmis would be given an increase in D.A. of 20 percentage points Honorarium of Panchayat Karmis has been increased by Rs. 350 per month.

Rs. 20 increase in daily honorarium of voluntary home guards and other voluntary ranks. A provision of

Rs. 400 crore has been made in the budget for these benefits to employees.

Taxation/Exemptions

VAT to be introduced from 1st April 2006.

In addition to 10 items exempted last year, Janeu (Sacred thread), Kite, sabai grass and rope made of it exempted form tax.

Food grains exempted from VAT.