In its maiden budget, the MVA government in Maharashtra today announced tax some tax concession proposals. This included 1 per cent stamp duty concession for the next two years and other related charges applicable on registration of documents in the areas falling under the Mumbai Metropolitan Region Development Authority (MMRDA) and municipal corporations of Pune, Pimpri-Chinchwad and Nagpur.
Deputy Chief Minister Ajit Pawar, who also holds the finance portfolio, said the concession in stamp duty will help promote the real estate sector in the wake of slowdown.
He also announced sops for farmers, proposed to increase VAT on petrol and diesel by Re 1 per litre and reduced electricity duty for industries.
Ajit Pawar presented a revenue deficit budget of ₹9,511 crore and proposed the size of annual plan 2020-21 at ₹1,15,000 crore in the assembly.
The budget estimates put the fiscal deficit at ₹54618.38 crore.
He proposed to reduce electricity duty on industrial use from 9. 3 per cent to 7.5 per cent of consumption charges.
The reduction in electricity duty will help promote industries in the state, the finance minister said.
Due to the tax concessions, it is expected that there will be yearly revenue loss of around ₹2,500 crore.
Similarly, Pawar proposed to increase VAT (value-added tax) on petrol and dieselby Re 1 per litre.
This will enrich the state exchequer by an additional ₹1,800 crore, the finance minister told the assembly.
He announced a one-time settlement scheme for farmers whose crop loan is more than ₹2 lakh, including principle and interest, from April 1, 2015 to March 31, 2019.
The government will transfer ₹2 lakh in bank accounts of eligible farmers after the outstanding amount above ₹2 lakh, as on September 30, 2019, is repaid by them, Pawar said.
Similarly, farmers who will regularly repay their dues up to June 30, 2020 and for crop loan taken by them during 2017-18, 2018-19 and 2019-20, a maximum of ₹50,000 will be given to them as incentive for the amount of crop loan taken during 2018-19, the finance minister said.
He said the government has set a target of feeding one lakh people through its 'Shiv Bhojan' meal scheme.