Kolkata: Despite the Centre depriving Bengal of Rs 60,000 crore of its "legitimate due", the Mamata Banerjee government has proposed a "people centric" state budget of Rs 3.08 lakh crore for 2021-22 fiscal with a prime focus on the further development of the social sector along with the creation of jobs with major thrust on industry and MSME sector.
A budget of Rs 1,291 crore and Rs 1,144 crore has been proposed for the industry and MSME sector respectively.
This is the first budget of the Bengal government after Trinamool Congress returned to power for the third consecutive term with a thumping majority and the budget proposal for 2021-22 fiscal is 20.75 percent more compared to that of the last financial year. The budget for 2019-20 was Rs 2.55 lakh crore. At the same time, 85 percent of the budget is proposed for "state development expenditure" that will further boost the state's macro economy, based on which Bengal's Gross State Domestic Product (GSDP) by 1.2 percent when the same for the country is "minus 7.7 percent".
"We have kept our promise made before the elections. It is a people-centric budget. The two most important components of the budget are social service expenditure at 58.26 percent and 26.29 percent for agriculture and its allied sector," Chief Minister Mamata Banerjee said while interacting with the media after the budget was tabled by state Parliamentary Affairs minister Partha Chatterjee. State Finance minister Amit Mitra, who later joined the Press conference virtually, did not table the budget as he was indisposed.
Banerjee took a swipe at the Modi government for depriving the state by not giving Rs 60,000 crore that it owes to the Bengal government. "The Central devolution for 2020-21 has been reduced by Rs 14,225.54 crore as we have received Rs 44,737.10 crore out of Rs 58,952.55 crore. Similarly, the state did not receive Rs 11,000 crore of the 2019-20 devolution funds. At the same time, the present outstanding amount for the Central Sponsored Scheme is Rs 33,314 crore," Banerjee said, adding that the Centre even did not provide the required assistance to fight Super Cyclone Amphan and Cyclone Yaas aftermath. Lambasting the Centre for an abnormal hike in prices of petrol, diesel and cooking gas, Banerjee said they have collected Rs 3.71 lakh crore from oil and petroleum products in the financial year 2020-21.
The states are also deprived as the Centre increased the cess to 16 percent that was only 5 percent in 2014.
"Despite being deprived, Bengal is much ahead of the country's economy that is being destroyed by the BJP-led government at the Centre," she said, giving a comparative figure of the state's GSDP, fiscal deficit, revenue deficit with that of the same of the country (in table).
Banerjee said equal stress has been given on employment creation by increasing the allocation for industry and MSME sector. There will be a creation of around 1.5 crore jobs in the next five years. Banerjee has stated about the world's second-largest Deocha Pachami coal block that will bring Rs 20,000 crore of financial benefits and create 1.10 lakh direct and indirect job opportunities. Similarly, another 200 tanneries are coming up at Bantala Leather Complex, where there are already 400 tanneries, creating 2.5 lakh job opportunities. The Jangal Sundari Karmanagari at Raghunathpur in Purulia will attract Rs 72,000 crore investment while the Silicon Valley in Kolkata spread over 200 acres will attract Rs 11,317 crore investment to create 50,000 employment opportunities.
Explaining the reason behind the increase in GSDP in Bengal by 1.2 percent despite the pandemic situation, Mitra said: "Unlike the Centre, the state has given stress to macroeconomics. We repeatedly requested the Centre to go for a demand stimulation policy. But they did not pay heed to the suggestions. In Bengal, it has been done by increasing social sector expenditure that ensured enhancement of people's procurement capacity. As a result, the GSDP has increased."
A budget of around Rs 18,650 crore has been proposed for expenditure in the social sector with a prime focus on schemes like Lakshmir Bhandar, Student Credit Card, Swasthya Sathi, new Krishak Bandhu scheme and Duare Ration.
The highest allocation of Rs 35,170 crore is for school education. The same for the Agriculture and Panchayats department stood at Rs 9,125 crore and Rs 23,983.27 crore respectively.
At the same time, the state government reduced the stamp duty for registration of deeds affecting sale or lease of land, house or flat by 2 percent considering the curtailment of the purchasing power of the people due to Covid situation led to the economic slowdown. The circle rate or market value for registration of deeds of land, house and flat has been proposed to be reduced by a whopping 10 percent. It will remain applicable till October 31, 2021. It has also been proposed to extend the one-time exemption of motor vehicles tax and additional tax from waiver of road tax from July 1 to December 31..