Tag: Finances of State

West Bengal’s debt repayment burden to multiply: Amit Mitra

Posted on | by admin2 | Leave a Comment on West Bengal’s debt repayment burden to multiply: Amit Mitra

West Bengal’s annual debt repayment burden would grow sharply in coming years as maturity dates of the loans taken by the previous Left Front government were drawing closer, state Finance Minister Amit Mitra said.

Replying during the Question Hour in the Assembly, Mitra said during 2015-16, the debt repayment amount would be Rs 8,877 crore, which is set to rise to Rs 9,781 crore in the next financial year.

In 2017-18, the amount would multiply to reach Rs 18,359 crore which, he said, would be a great burden on the state, Mitra said. According to him, this will happen as ten, 12 and 15 years loan were going to mature.

Mitra said that the state government was making provisions towards this and also by sticking to fiscal and revenue discipline. He said that one silver lining was that the state GDP was rising at a rapid pace while the debt/GSDP ratio was falling.

Attacking the Left Front, Mitra said that the loan burden as on March, 2015 as per revised estimates was Rs 2.74 lakh crore. When the Trinamool Congress came to power in May, 2011, the inherited debt was close to Rs 2 lakh crore.

In the first four years of TMC rule, the debt increased by Rs 82,946 crore, out of which Rs 76,346 crore were spent towards interest and principal repayment.

During the four years from 2011, the ruling government had borrowed only Rs 6,617 crore which was used for its own spending, Mitra said.

Pointing out that West Bengal was caught in a debt trap, Mitra said that he and the chief minister have discussed the matter with the UPA government and the present NDA government for amortisation of the debt repayment schedule, but there was no positive outcome from either of them.

The UPA government offered $10 billion to the IMF for tackling the Eurozone crisis, but ignored the cry of a federal state which was in deep distress, he regretted. He also accused the Left Front of breaching the borrowing limit under FRBM Act.

Gross Value Added of Bengal 10.48% in 2014-15

Posted on | by admin2 | Leave a Comment on Gross Value Added of Bengal 10.48% in 2014-15

West Bengal Finance Minister Dr Amit Mitra presented the Bengal Budget 2015 today at the West Bengal Assembly. Making a large leap this Financial Year, Bengal Government is aiming to jump a growth of 10.48% GSDP in 2015-16.

In a press conference after the announcement of this years budget the Chief Minister proudly said: “This is a people’s budget. This was a Budget for Maa, Mati, Manush.”

Here are the highlights of Dr Amit Mitra’s speech: 

  • Maa Mati Manush has confirmed their faith on our leader Mamata Banerjee time and again, Bengal economy is moving in a new direction
  • Bengal’s Gross Value Added Growth is 10.48%, while for the Nation it is 7.5%
  • Capital Expenditure growth: In 2010-11 it grew at  a negative 26%, in 2012-12 positive 24%, 2012-13, positive 63% and in 2013-14 positive 52%
  • Planned Expenditure has been a record double in 2 years
  • Bengal has a huge debt, in 2013-14, Rs 28,000 crore deducted
  • In the last 3 years more than 1 lakh crore has been deducted from the treasury
  • Food and storage capacity has been raised 9 times  in last 3 years from 40,000 MT
  • 95 Kisan Bazars have been planned, 84 are already running
  • To protect Food Security, 91,000 false ration cards have been cancelled
  • The number of digital ration cards have touched 7.8 crore numbers. This is an unprecedented success
  • West Bengal secured the top position in the 100 Days Work Scheme
  • The State Govt set up 25 lakh toilets in the last 3 years in households and schools
  • In Nijo Bhumi Nijo Griho scheme, 2 lakh 30 thousand pattas were distributed
  • For the economically challenged section, we have been able to increase the housing by 3 times
  • Under ‘Gitanjali’ scheme and ‘Amar Thikana Abason’ scheme 93,852 people and expenditure increased by 7.5 times
  • In Jal Bharo Jal Dharo scheme, 1,18,000 ponds were dug, target was 50,000
  • The supply of Drinking Water has increased by 252% in the last 3 years. The expenditure was Rs 470 crore (2010-11). We have started 615 projects for the rural water projects, which is double from 2010-11
  • We set up 95 Fair Price Medicine Shops from which 1 Cr 30 lakh people benefited worth Rs 364 crore.
  • 418 new primary schools and 1438 HS schools have been set up
  • 1618 Madhyamik schools upgraded to HS schools
  • 319 Junior schools upgraded to Madhyamik schools
  • 85,000 new classrooms set up in schools of West Bengal
  • There were 13 Universities in West Bengal since 1947, in 3 years we have set up another 13
  • There were 32 new colleges since 1947, we set up 40 new colleges in 3 years, since 2011, 43 new ITIs set up besides the 83 present, new 92 ITIs are underway
  • Since Independence only 62 ITIs are there. In the last 3 years we have set up 34 new ITIs and 32 new ITIs are coming
  • Among the minority community Rs 1392 Crore given as scholarships to 65 lakh needy students, which is 8 times than the previous Government
  • 22 lakh girl child have been registered in Kanyashree scheme and 20 lakh girl child already benefited
  • West Bengal has been in the top position in Skill Development in 2013 and 2014
  • Online registration for obtaining caste certificates started of which 2.74 lakh caste certificates of Tapashili caste are already distributed
  • The number of cycles given to tribal students is 10 times more than the previous Government
  • 45 lakh Unorganised Sector workers brought under the ambit of social security benefits
  • Rs 359 Cr has been given to 12 lakh workers in Unorganised Sector as social security benefits, which is 40 times more than the amount spent in 2001-2011.
  • Before 2011, there was 385 km rural roads, during 2013-14, the length increased by 4 times to 2631 km, 1270 kms converted to two lanes and 2672 kms broadened
  • The expenditure on roads and bridges have increased by 3 times
  • The Asian Highway 2 connecting Nepal border with Bangladesh border  worth Rs 600 crores and Asian Highway 48 connecting Bhutan border with Bangladesh border worth Rs 900 crore have already commenced
  • Birth-death certificates, trade license etc are to be given through online portal in municipal areas.
  • Rs 3420 crore has been given for 22 new townships. Investment proposal worth Rs 76000 crore received
  • The new district, Alipurduar created, Uttar Kanya, the North Bengal Secretariat set up
  • Uttar Banga Business Summit received proposal of Rs 2200 crore for investments and another Rs 1700 crore in MSME
  • Special emphasis is given in the 74 backward blocks of the 5 districts of western region. Out of the 260 project, work for 152 schemes have already been completed
  • For irrigation, a new project ‘Krishi Bandhu’ worth Rs 500 crore set up.
  • In Tourism, Planned Expenditure increased 20 times from 2010-11 to Rs 223 crore in 2014-15
  • New international carriers have started services like Dragon Air, Silk Air
  • Air Traffic at Bagdogra and Asansol have increased
  • 874 new buses are now on the roads boosting transport
  • Eco Park, International Convention Center set up at Rajarhat
  • Sales Tax has been reduced  for Aviation Turbine Fuel
  • For Kolkata airports sales tax over fuel reduced from 30% to 15%. The measures have helped to increase
  • 8 IT parks are on the verge of competition, another 7 are coming up. 2 electronic manufacturing hub have been sanctioned and one hardware park will be set up within 2015
  • In case of ‘big industries’ the investment under implementation or already implemented stands at Rs 84,211 crore from the stage F0 to F6, as i have explained earlier in the Assembly
  • In addition to this investment proposals worth Rs 55855 crore has been received earlier, and in the Bengal Global Business Summit proposal of Rs 2,43,000 crore have veen received, thus making a total of Rs 3,00,000 crore.
  • The bank lending to MSME has grown to a record high of Rs 40,713 crore, which is about 3 times.
  • In 2012-13 and 2013-14, this growth rate is the highest in India
  • The number of MSME clusters have increased by 3 times from 54 to 161
  • 531075 numbers of weavers identity card have been provided

 

Allocations 

– Food & Supplies – Rs 202 crore in 2015-16 from Rs 175.2 crore in 2014-15

– Agriculture Rs 1500 crore in 2015-16 from Rs 1157 crore in 2014-15

– Food Processing –  Rs 138 crore in 2015-16 from Rs 120 crore in 2014-15

– Water Supply –  Rs 450 crore in 2015-16 from Rs 356.85 crore in 2014-15

– Fisheries –  Rs 218.1 crore in 2015-16 from Rs 196 crore in 2014-15

– Irrigation  –  Rs 2041 crore in 2015-16 from Rs 1872.49 crore in 2014-15

– Water Resources –  Rs 528 crore in 2015-16 from Rs 466.52 crore in 2014-15

– Forest –  Rs 271 crore in 2015-16 from Rs 225 crore in 2014-15

– Health – Rs 2580 crore in 2015-16 from Rs 2211 crore in 2014-15

– School Education  – Rs 8055 crore in 2015-16 from Rs 6844 crore in 2014-15

– Women Dev – Rs 863.98 crore in 2015-16 from Rs 720.76 crore in 2014-15

– Labour – Rs 250 crore in 2015-16 from Rs 220 crore in 2014-15

– Sports – Rs 180 crore in 2015-16 from Rs 142 crore in 2014-15

– Youth Dev – Rs 160 crore in 2015-16 from Rs 130 crore in 2014-15

– Home – Rs 273 crore in 2015-16 from Rs 245 crore in 2014-15

– Culture – Rs 200 crore in 2015-16 from Rs 165 crore in 2014-15

– Urban Dev – Rs 1895 crore in 2015-16 from Rs 1585 crore in 2014-15

– Transport – Rs 450 crore in 2015-16 from Rs 400 crore in 2014-15

– Child Dev – Rs 2809 crore in 2015-16 from Rs 2420 crore in 2014-15

– Electricity – Rs 1295 crore in 2015-16 from Rs 1174 crore in 2014-15

– Municipal Affairs – Rs 2464 crore in 2015-16 from Rs 2251 crore in 2014-15

– Minority Dev – Rs 2033 crore in 2015-16 from Rs 1737 crore in 2014-15

– Backward Class Welfare – Rs 483 crore in 2015-16 from Rs 377 crore in 2014-15

– North Bengal Dev – Rs 450  crore in 2015-16 from Rs 375 crore in 2014-15

– Sundarbans Dev – Rs 370 crore in 2015-16 from Rs 300 crore in 2014-15

– MSME – Rs 618 crore in 2015-16 from Rs 536 crore in 2014-15

– Industry and Business – Rs 653.5 crore in 2015-16 from Rs 544 crore in 2014-15

  • WB received CSI Award for governance and ranked 1st in the category ‘Excellence in e-Governance’
  • VAT registration threshold has been increase from 5 lakhs to 10 lakhs, 20000 small business to be benefited
  • A host of steps to simplify VAT registration, appeal, refund etc taken up
  • Input Tax Credit to be extended to the manufacturers
  • Threshold of additional stamp duty for registering properties raised to Rs 40 lakh instead of Rs 30 lakh
  • Entertainment Tax relief increased to Rs 100 for music show, magic shows
  • 20 lakh hectres of new land to be brought under irrigation
  • The scholarship for Kanyashree raised to Rs 750 from Rs 500
  • The pensions for Samajik Mukti Card holders have been increased in various steps
  • Transport Workers are from now on entitled to avail Samajik Mukti Cards
  • 10 years of Tax Relief will be given to providers of Green Electricity
  • In the last year, we could create 16.6 lakh employment, in the coming year expecting 17.5 lakh employment

Bengal’s debt conditions improve under Trinamool

Posted on | by admin2 | Leave a Comment on Bengal’s debt conditions improve under Trinamool

West Bengal’s public finance and debt conditions were under adverse conditions when Mamata Banerjee took over the Government. However under the leadership of Mamata Banerjee, Chief Minister of West Bengal and Amit Mitra, Finance Minister of West Bengal along with a dedicated teams of officials the situation has improved in the last 3 years.

Note: Figures for 2012-13 are Revised Estimates and for 2013-14 are Budget Estimates. The averages used in the RBI Publication include the estimates.

In the RBI publication “State Finances-Study of Budgets 2013-14”, the ‘Debt Sustainability Indicators’ and ‘Debt Servicing Indicators’ have improved  for Bengal.  The results are here for everyone to see:

economy files

The Debt-GSDP ratio was 44% in 2008-09 and 2009-10 has decreased sharply over the years. It stands at 40.1% in 2011-12, 37.5% in 2012-13 and at 34.6% at 2013-14.

economy files

Interest payment to GSDP ratio has fallen down from 3.8% (2005-06 to 2009-10) to 2.8% (2010-11 to 2013-14).

economy files

Interest payment to revenue receipts has also decreased from 37.9% (2005-06 to 2009-10) to 25.8% (2010-11 to 2013-14). Revenue receipts means the taxes, duties and fees levied by the government and also includes interests on investments made by the government or dividends earned by the state.

economy files

The growth of GSDP (g) is higher than the effective rate of interest (i), ie g-i >0. In WB, g-i, is now at 8.3(2010-11 to 2013-14) and has increased from 4.6 (2005-06 to 2009-10).  If GSDP grows at a higher rate than the effective rate of interest, then it reflects a better situation of public finance. The surplus has grown sharply over the years.