Mumbai: Get ready to shell out more for mobile phones, liquor, and cars. Overriding economic concerns, the Democratic Front government's budget proposals for 2009-10 were made keeping in mind the assembly election later this year.
Urban Maharashtra lost out to rural areas with special packages and sops to tribals, backward castes, and minorities. The Mumbai makeover, an integral part of the budget for nearly a decade, was given the go-by.
Tax decisions, too, reflected the Congress-NCP combine's keenness to change its pro-corporate, pro-rich image. As a result, mobile handsets and digital cameras will be taxed heavily, with the VAT on these goods being increased to 12.5% from the earlier 4%.
Taxes on liquor and four-wheelers have also been raised to signal that the government is not punishing the aam aadmi. "We have struck a balance to provide relief to all sectors," finance minister Dilip Walse Patil said.
But the Rs37,000 crore plan outlay with a deficit of Rs7,123 crore left many wondering how the money will be generated. "My tax proposals will result in a net revenue gain of Rs910 crore," said Patil.
But the opposition didn't seem convinced. "It is a classic case of bad financing," said the BJP's Devendra Fadnavis. While doling out packages in non-plan sectors, the government has ignored developmental sectors like power and infrastructure, he said.
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Source :
Central