Gujarat govt presents modified Rs 2 trillion budget with Rs 572 cr surplus

Gujarat Finance Minister Nitin Patel
Gujarat finance minister Nitin Patel on Tuesday presented the state's modified budget for the year 2019-20, with an overall surplus id Rs 572 crore. 

In a first, Patel also presented a budget size of Rs 2.04 trillion for the year 2019-20. "This is a historical moment for the State as first time since the formation of the State, a budget size of over Rs two lakh crore (Rs two trillion) is being presented in this house," said Patel while presenting his seventh budget.

The modified budget has estimated revenue receipts of Rs 1.54 trillion, with a revenue expenditure of Rs 1.51 trillion for the year 2019-20. Patel has also estimated capital receipts at Rs 43,215 crore and capital expenditure including loan and advances at Rs 51,004 crore. 

The Gujarat finance minister stated that the state economy grew by 10 per cent at constant rates in the last six years, one of the highest among the major states. 

In terms of tax proposals, there will be an increase in electricity duty on industrial units consuming captive power, even as a hike in stamp duty, charged at a fixed rates on instruments, has been proposed while those having ad-valorem charges kept unchanged. In all, Patel has proposed additional tax income of Rs 287 crore.

Presented on the first day of the monsoon session of the state assembly, the modified state budget focused largely on water management, green energy, environment, agriculture and farmers welfare, and employment.

Gujarat government will spend about Rs 20,000 crore over the next three years for providing tapped drinking water facility. 

On the clean energy front, Gujarat plans to increase its installed capacity from current 8885 Mw to 30,000 Mw by 2022, of which 10,000 Mw is likely to be sold to other states. Further, to encourage roof-top solar power generation, a subsidy at 40 per cent for upto 3 Kw systems and 20 per cent for capacity in the range of 3-10 Kw was announced. 

The roof-top solar project is aimed at covering 200,000 families, up from current 50,000 families. 

The budget speech promised power to all 125,000 pending agricultural power connection requests over the next one year. 

Patel also stated that under the Pradhan Mantri Kisan Samman Yojana rolled-out by the Government of India, subsidy worth Rs 1,131 crore has already been disbursed as first two installments to 2.8 million farmers of the state.

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