The All India Trinamool Congress Working Committee met today at Kalighat Office. Several organisational changes were made in the meeting:
All India General Secretary: Subrata Bakshi
National Secretaries: Kakoli Ghosh Dastidar, Derek O’Brien, Firhad Hakim, Suvendu Adhikari
Vice Presidents: Dinesh Trivedi, Sultan Ahmed
Treasurer: Tamanash Ghosh
Professor Saugata Roy and Derek O’Brien briefed the media in Parliament on Trinamool’s reaction to Union Budget 2015:
WB Finance Minister reacts to Union Budget 2015:
From slashing stamp duty for properties to raising VAT exemption limits, West Bengal Finance Dr Amit Mitra took every step to woo the middle class in this year’s state budget.
Dr Mitra has reduced 1% additional stamp duty on properties that are valued between Rs 30 lakh and Rs 40 lakh. The proposed stamp duty for properties in this range will be 6% instead of 7% earlier. Industry sources say it will translate into a saving of around 14% for a buyer.
A property priced at Rs 40 lakh was earlier attracting a stamp duty of Rs 2.80 lakh. But with the new rates in place, the buyer will save Rs 40 thousands, or around 14%, on the earlier stamp duty .
Jitendra Khaitan, chief managing director of Pioneer Properties and board member of National Realtors’ Association, felt that the decision would offset service tax burden on the buyer to a large extent. “A reduction in costs always sends right signals across the industry . A saving of Rs 40,000 on stamp duty will encourage buyers,“ he said.
Dr Mitra has also tried to address concerns of the small and medium business units he had spoken to at length a month before the budget.He has increased threshold limit of VAT exemption for units with turnover of Rs 5 lakh to Rs 10 lakh.According to the finance minister, around 20,000 businessmen will now go out of the VAT ambit after the new announcement. Industry experts said the small businessmen used to get reimbursements for the VAT earlier. But with the new exemption in place, they will no more have to wait till the money is reimbursed.
Respite has also been given to business units which have turnover up to Rs 5 crore. These units will not have to hire chartered accountants any more. The state department of micro, small and medium enterprises has been running campaigns for ease of doing business in Bengal for the past six years. By bringing a large chunk of MSMEs out of the compulsory appointment of chartered accountants and promoting self-assessment, the Minister has also tried to encourage the process.
The State MSME secretary said more than 10,000 new MSME units were being registered in Bengal every year. While 60 per cent of them are in the manufacturing sector, the remaining are in the service sector. While it is difficult to quantify the units by turnover, most of these units have an investment of Rs 1 crore on an average.
Dr Mitra also tried to encourage the non-cinema entertainment industry in the state by reducing amusement tax. Events such as musical concerts, magic shows and dance will now be brought under the exemption net. Dr Mitra has proposed to enhance exemption limit from Rs 60 earlier to Rs 100.
Economist Abhirup Sarkar feels that there is little room for giving relief to the middle class in West Bengal. “In Bengal, state taxes are much below the national average. Giving further relief is a challenging task for a Finance Minister. He (Dr Mitra) has tried to create some room even in that short space,“ he said.
The Bengal Inc has hailed the budget of West Bengal Finance Minister Dr Amit Mitra and termed it as a forward-looking and positive one.
The industry bodies, including the Indian Chamber of Commerce, MCC Chamber of Commerce and Industry, Bengal Chamber of Commerce and Industry, Bharat Chamber of Commerce, CII and Bengal National Chamber of Commerce (BNCCI), have hailed the budget.
ICC director general Rajiv Singh pointed out that despite the huge debt burden, which will go up to Rs 2.99 lakh crore, the Finance Minister has been able to make fund allotments to almost all growth sectors of the state’s economy. It was commendable that the state GDP growth rate was much higher at 10.48% compared to the all India figure of 7.5%. “Over the last three years, the state has been able to double the plan expenditure which was a record increase,” he added.
Bengal Chamber of Commerce director general P Roy feels that it is a forward-looking and people-oriented budget with focus on social sectors.
Bharat Chamber president Sajjan Bhajanka congratulated Mitra for presenting a fairly-balanced budget which he feels aims at generating new infrastructure, preserving the existing infrastructure, boosting agricultural productivity of the state, giving greater emphasis on employment generation and ensuring transparent governance.
MCC Chamber president Arun K Saraf hailed the budget for simplicity and reform in tax system. “Assessment procedure has been simplified and tax refund has been made speedier and time bound,” he added.
Chairman of Universal Success, Prasoon Mukherjee, congratulated Dr Mitra for the thrust on green energy and tourism. “He has declared VAT concessions for green energy generation which is a prudent initiative. The budget has also put stress on new tourism circuit which is good for Bengal. We can present the state as an attractive tourism destination,” he added.
Patton MD Sanjay Budhia said that Dr Mitra has unleashed major tax reforms which will boost industrialization in Bengal. Chairman of Sarda Group, G Sarda, said that the Finance Minister has ensured thrust on employment and also tried to direct the state economy towards development.
This is the last full Budget for the present Government. What were your top priorities?
Dr Amit Mitra: This Government is for Maa Mati Manush. Our first priority is social and physical infrastructure, bridges, roads etc. This is the responsibility of the Government.
Secondly, we needed a Budget which increases employment of common people. Skill development is connected with it making it a package.
Thirdly, we wanted to bring all small, medium business under Tax ambit. We urged them to pay their taxes and walk proudly with the Government. That is on perspective.
Fourthly, we wanted to present a score card. The next time we may have to place Vote on Accounts.
In the first part of the Budget we placed a department by department score card. People of Bengal will be astonished to find that up to 40 times increase in allocations have been made and results received compared to time frames. We have shown what happened between 2007 and 2011, and 2011 and 2013. We have placed these data in a scientific manner.
Lastly, for whom is this Budget? This Budget is for all kind of people. This Budget is for young people & students. Why do they drop out after VIIIth standard? They cannot reach their school. Bicycle is a vehicle of checking dropouts.
Kanyashree is another vehicle for checking dropouts. We are seeing its results. 22 lakh girls registered, 20 lakh girls received scholarships. They are going to school.
Your target is 40 lakh girls…
Dr Amit Mitra: Yes.
Let me say another thing first. We are trying to bring an inspiration among the farmers to increase the productivity.
We are saying that the Government will provide Rs10,000 for pump sets. We have enough below-surface water. The irrigation should be increased by 20,000 hectare.
You are talking about Green Government. In the long run, will the pump sets bring any negative influence on the ground water level?
Dr Amit Mitra: We are not speaking in vacuum. We have a unique project call Jal Dhoro Jal Bhoro. Our target in five years was 50,000 hectare. We have crossed 1,20,000 hectare. This means we are protecting and harvesting water. When you harvest water, the sub-level water table rises.
The Left Front Government had a Tax collection of Rs 21,000 Crore. You have doubled it in four years. But your target for 2014-145 was Rs 45,000 Crore. Is there a shortfall of Rs 5000 Crore?
Dr Amit Mitra: Hold your breath. Give a little more time. The most tax collection is made in March. We have not yet reached March. We have a very good chance of reaching the target we took. Do not make your judgment so soon.
Your target for the next year is Rs 46,500 Crore. There are no new taxes this year. Stamp Duty has also decreased. How will you meet this target?
Dr Amit Mitra: I will give you an example. In 2005, Asian Development Bank made a study on different states. On West Bengal, they said that there is 50% non-compliance of tax. Those who are supposed to give taxes, 50% of them do not submit taxes. In this Budget, we have formed an Amnesty Scheme. Those who did not submit taxes and have huge penalties will be given relief. We have removed the penalties, so that they can pay their original taxes only and be under the ambit. This will be a huge impact on compliance.
The last Left Front Government collected tax revenue of Rs 21 lakh crore. Every year we have seen a confident Amit Mitra increasing the target. But this year we find you have increased the target by only Rs 1500 crore. Do you think that tax collection in this state has reached a stagnation point?
Dr Amit Mitra: This is called the cyclical process which we call in economics. By increasing the tax compliance constantly you reach to a level and then for a certain period of time it remains stagnant. Then it again takes a jump.
Let me give you an example for simple understanding. For properties worth Rs 30 lakh or more the stamp duty for registration was 7%. What we observed that people having property worth Rs 30 lakh to Rs 40 lakh were not registering for that extra 1%. We have increased the threshold limit to Rs 40 lakh so that people register and come in the tax net. This is a method of incentivising people to pay taxes. If you look closely you will find that there are incentives which we have provided for people to come within the tax net.
We don’t want to go to an unrealistic level suddenly. We have progressed in high speed. Now we need to find out new ways of generating energy.
What are you thinking about debt? Because the Opposition is complaining when Left Front went back then the loan amount was Rs 1,92,000 crore and after 2015-16 it will be Rs 2,99,000 crore. You are also taking loans…
Dr Amit Mitra: The first answer is we cannot increase these debts indefinitely. Because the FRMB Act which was introduced by Left Government and we have implemented. That means we cannot take any loan after a certain level which is 3.5% of GSDP. We cannot do fiscal indiscipline. Second point is to left 2 lakh crore loan means we have to repay Rs 28000 crore as previous year’s principal amount with interest. Central Govt has cut off Rs 1,00,000 crore in this year. That means we have fallen in a Debt Trap, which is called Vicious Cycle. We have to maintain a discipline that we should take a loan according to FRBM. Why we are taking loan? Because we have to pay that Rs 28,000 crore and we have to pay the salaries.
After this year, what will be the loan amount and repayment?
Dr Amit Mitra: If you want a theoretical explanation then I can tell you the Debt to GDP. When we came in power then the debt GDP ratio was 40% and we have dropped it down at 36.93% at 2013-14. How? Because we are maintaining a system by which the GDP ratio is increasing and debt to GDP ratio is decreasing. My problem is this Central Govt didn’t talk anything about solving the debt to GDP in this 14th Finance Commission. That meant, in this year again we have to refund Rs 2,80,000-3,00,000 crore as Principal Amount with interest. We are borrowing Rs 40,000 crore within which we have to refund Rs 28,000 crore as interest.
You have decided to meet the Prime Minister Narendra Modi for debt restructuring. But do you really hope that something will happen? Are there any provisions in the act to provide the moratorium?
Amit Mitra: Let me talk about two things here.
Firstly, in case of Punjab, the loan given to Punjab since 1946 was not only given a moratorium, but the loan was also waived off. Because there was a special financial situation in Punjab, but now that exists in Bengal. If you compare the two situations, our situation was much worse. I can show you with data that the situation that existed in West Bengal was much worse than Punjab. There was massive capital flight and financial situation was down the drain.
Secondly, I also want to mention the point. India can give 10 billion US Dollars to IMF for debt reconstruction for Greece, but can they cannot give 50% of that amount to the debt-stressed states of West Bengal, Punjab and Kerala? They can give to Greece, but they cannot give it to their own state? Is this logic? Is West Bengal out of India? You are ready to give it to Greece, but you have problems with West Bengal?
We want to explain what is in the mind of the people of the state? It is our right to explain our situation financially, socially and politically. The mess is created by the previous government.
The share on Central Taxes has increased to Rs 31,966 Crore. Grant-in-Aid has increased to Rs 32,225 Crore. What is your plan and what will be the impact?
Dr Amit Mitra: One thing should be remembered that the numbers that are being printed on newspapers will be verified only after the Budget documents of the Central Government are made available. This is speculation. Secondly, we, as well as the other states are getting a feeling from the Central Government. The feeling is, they will give in one hand and take away with the other.
There are talks of closing down eight schemes…
Dr Amit Mitra: This means, the CN and CS, the grants from the Central Government, in different ways, for which we had some shares, some were grants from the 13th Finance Commission, some will be grants from the 14th Finance Commission, these will be decreased. These are very important for the common people. This is still a feeling which cannot be understood clearly. It may happen so that that whatever we got will be juggled. We will be where we already are. I pray to God that this does not happen. This is very important.
But the Central Government will publicize that Central Grants has been raised from 32% to 42%…
Dr Amit Mitra: People will think that Central Grants has been raised from 32% to 42%. Thousands of crore of rupees have arrived. But that is being subtracted in other fields. The second question is, we are getting another dangerous indication. Now we are getting to hear that the 100 Days work scheme will be trimmed down. It is not clear what the fate of 240 Blocks will be. Common people, with the help of 100 Days work scheme are creating assets, agricultural infrastructure, roads etc. I cannot give a proper judgment but there are two sensations. First, will it happen that they will give with one hand and take away with the other? The second is, will they trim down the 100 Days Work Scheme? What are the other schemes that will be trimmed down, there is no information.
What are the steps you are thinking to increase the non-tax revenues?
Dr Amit Mitra: This is a critical question. Our Government has given a considerable thought on this. Let me give you an example, our transport department found out that is terminal bus stands, but the buses or trams have not gone there because there is no infrastructure. If we can bring them for development projects, then government will get the money and through Keynesian Multiplier, cement steel and other things will happen.
We did competitive bidding for those terminals. Three such bidding have been successful, which the media does not talk about. And by these bidding we can get non tax revenues.
Likewise if you consider, the government has a few closed tea gardens. The employees are there also. We decided to lease those, but not diluting our ownership, and providing a clause that anyone who bids will have to retain the employees. So the workers safety is ensured. Those who work in the tea garden but not a direct employee of the company; we will absorb them in government. So they are also safe. And it was a success. In the Uttar Kanya Summit, the CM handed over the LOI for the three tea gardens of Darjeeling under the PPP model. They have promised investment of Rs 60 crore immediately to rejuvenate the tea gardens. They will keep all the employees and made a record bid.
The ex-Finance Minister Dr Ashim Dasgupta has called this budget, as a ‘confusing budget’. How would you react?
Dr Amit Mitra: I have respect for Dr Dasgupta, he is my senior. But the problem is, over the last three and half years, data does not reach to him. Of course he has political obligations to say this. As far as I know, he is a member of the Politburo, so he has the right to say. But I would say when he would read the fine print of the budget and keeps the politics out from him and read as an economist, I am sure he would love it and I am expecting a congratulatory phone call.
The Opposition claims that you have failed in controlling the Fiscal Deficit. What are your claims on that?
Dr Amit Mitra: This is absolutely untrue. You will have to understand how fiscal deficit (FD) is calculated. There is no meaning of an absolute figure. In Economics, the fiscal defcit is measured as a ratio of GDP, which I am sure Ashim da teaches to his students. Have we been able to decrease the FD to GDP? That is the question. I speak with full responsibility that systematically we have decreased the revenue deficit as a proportion of GDP, fiscal deficit as a proportion of GDP and debt-GDP ratio, we have decreased all three. You will not find this achievement in the history of our state.
What is about Industrialisation and Employment?
Dr Amit Mitra: I am giving an example, yesterday Leader of Opposition told that many things like roads, hospitals etc. are constructing. Now the main point is to make this development we have to increase employment. And the employment is generating. These comments are asset creating. Employments are generation vastly. You will be surprised to see this scorecard which I gave. You will be surprised that in terms of rural roads we are number one. There are massive employments generating in the village areas. Take the example of MSME sector, which is extremely labour incentive. Even in that sector for two consecutive years 2012-13 and 2013-14 we are at number one in terms of growth of bank lending. In 2013, Maharastra was at 50%, we were more than 100% and Gujarat was at 34% in terms of growth of bank lending. In case of big business, I can provide you the list, investment under implementation or already implemented is more than Rs 84000 crore for 430 units. The last time Dr Surya Kanta Mishra, Leader of Opposition, has asked for it, I had given him the hard copy of the list through the speaker.
Non-planned Expenditure overrides Planned Expenditure. Why and how much dangerous is this?
Dr Amit Mitra: We are suffering from a legacy. When we took over the Government, we found that both Capital Expenditure and Planned Expenditure were extremely low. Capital Expenditure was –ve 24%. We doubled the Planned Expenditure. I must say, not just the Planned expenditure should be considered, it is need to know how much expense is being made. The figure I have given in the Budget is the Real Expenditure, the Actual Expenditure. The question is from which point of view are we looking at the development. Regarding Skill Development, Samsung is giving training and there is 100% employment. Does anybody know that Raymonds have opened five centres and there is surety of employment on passing the courses. An ITI near Darjeeling provided 100% employment for all the 250 students.
There is Tata-Hitachi company in one of our industrial parks. There Japanese companies have come as ancillaries. Nobody knows this. An MNC, HR Johnson is making tiles here. Matixis al set to be in our Panagarh Industrial Park with Rs 5,500 crore investments for fertilizer products. Does anybody know that Anil Ambani’s company has invested Rs 600 crore for cement?
I was most happy on the day when the respectable Chief Minister of West Bengal Mamata Banerjee has visited herself to inaugurate the Salboni plant of OCL. Siddhartha Birla plant at Barjola, Bankura was also inaugurated by the CM. Then I felt very happy because solid manufacturing industry has started to come to Bengal.
The Opposition claims that you spend so much of money on freebies, which will hamper you in future. Don’t you think it is time you must restrain?
Amit Mitra: What the Opposition says is politically motivated. Let me take the example of the free cycles. We have planned to give 40 lakh students free bi-cycles over the next two years. In the whole year in India the total production of cycle is about 1.5 crore annually. So if a manufacturer receives a bulk order like this, they will immediately start a manufacturing unit here.
We are giving 10 lakh pumps and a subsidy of Rs 10,000, which means some pump companies will take this opportunity and invest in West Bengal. You can only call it a freebie, if there was no multiplier effect and the amount involved or the percentage was huge. So this is more of a political talk. I you consider the actual facts then you can will find out that the Opposition views do not stand a chance.a
West Bengal Chief Minister Ms Mamata Banerjee and Finance Minister Dr Amit Mitra held a post-Budget press conference at West Bengal Assembly.
The Chief Minister said, “Today the West Bengal Budget 2015-16 was presented by Dr Amit Mitra. This is a people’s Budget. This is a Budget for Maa, Mati, Manush. West Bengal is the only State facing huge debt-burden. We were asked to wait for 14th Finance Commission Report. But it is silent.”
Highlights of the Chief Minister’s reaction:
Highlights of the WB Finance Minister’s reactions:
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:
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
After playing the role of the principal Opposition party in the Winter Session of Parliament, Trinamool Congress is again dominating the proceedings of the House in the Budget Session.
After raising a Zero Hour discussion on Mother Teresa yesterday in the Rajya Sabha, Trinamool won the support of the major Opposition parties. The party also slammed the Government during the Motion of Thanks on the President’s Address.
On Friday, Debabrata Bandyopadhyay raised the issue of Santhali language being represented in Devnagari script instead of in Ol Chiki in an advertisement published by the Ministry of Human Resource Development. He called it an insult to the Santhal community and demanded an apology from the Government.
During a Zero Hour discussion in the Rajya Sabha, Vivek Gupta asked the Government to reconsider delinking forest land from the wildlife impact assessment system by the National Wildlife Board and allowing adjustment within a 10 km range of national wildlife zones for such clearances. He said that forest cover can be increased while going for sustainable development, environment and infrastructure.
During a Question Hour in the Rajya Sabha, senior MP Sukhendu Sekhar Roy questioned the Government on why 14 districts have been excluded from the coverage of handloom marketing assistance. Also speaking on the handloom industry, Rajya Sabha MP Vivek Gupta asked the Government why two jute units in West Bengal have been removed from a BIFR assistance scheme and also, why there has been no increase in the number of people in the handloom industry in the state getting health insurance, from the 2012-13 numbers.
Sir, I would invite the attention of the Hon’ble Minister to Annexure IV of the reply whereby it appears that the figures for financial year 2014-15 have not been given. According to the figures for the year 2010-11, 24 districts were covered. But in 2013-14, only 10 areas were covered; so 14 districts were excluded, compared to 2010-11.
My question is, what are the reasons behind it?
AITC MPs Vivek Gupta and Sukhendu Sekhar Roy took up the rising concern of dwindling sectors of handloom and jute industries in Parliament today.
Vivek Gupta mentioned 40 lakh jute growers are affected and 4 lakh jute workers are affected specially in Bengal that what steps have been taken by the Minister for the prevent the dilution of the jute packing order and also for the revival of the Khardah and the Kinsan units, which had earlier received the cabinet approval of the Board of Industrial and Financial Reconstruction Scheme, but now suddenly on 20 November has been removed from the scheme now 5 jute mills in Bengal are declared sick and facing immediate closure.
Further pointing put why there has been there has been no increase in the number of people being provided health insurance, the Ministry was urged that what is the reason for this disparity.
Clicke here for the full transcript of his speech.
Sukhendu Sekhar Roy raised the concern of why 24 districts were covered in 2011-12, but in 2013-14, only 10 areas have been covered, so why have 14 districts have been excluded?
