PANJIM: With an eye on the 2017 Assembly elections, Chief Minister Laxmikant Parsekar announced a near please-all budget for the year 2016-17 announcing heavy sops to the mining industry.
Starting his two-and-half-hour long budget speech with a poem by late Bakibab Borkar, Parsekar tried to emulate Arun Jaitley with a bulk of schemes announced for farmers and fishermen.
But in a clear bow down to miners in the garb of reaching out to the mining sector as a whole the government abolished welfare cess on ore on which royalty is already paid to the State. “In the year 2000, the State government had enacted the ‘The Goa Rural Improvement and Welfare Cess Act 2000’, with the objective of providing socio-economic benefits and for improved infrastructure in the areas affected by mining operations and movement of mineral ore,” The Chief Minister said that the district mineral foundation has been established with similar objectives as hence the exemption. The benefit will however benefit iron ore exporters, loosely referred to as miners
Parsekar said that nearly 16-17 mining leases have already commenced operation and in the coming season he expects full-fledged resumption of the industry.
“Everything is going in the right direction. The Central government has slashed export duty and the international market conditions are also slowly stabilizing. I am confident that mining in full will resume at the earliest,” he said, in atone more of hope than practical reality.
As per the demand from the industry players and other dependents, the Budget has proposed rationalization of various fees, wherein the annual processing fees for raising contractors and barge and machinery is fixed at Rs 10,000, registration fees for transport contractors and trucks at Rs 5000.
The Chief Minister also announced a proposal to exempt trucks and barges in the mining industry from taxes to be paid to the State Transport department and Captain of Ports department respectively. “This exemption is subject to the condition that the assets (trucks and barges) are still in their possession and are not utilized at all,” he said.
Parsekar said if these trucks or barges are used this exemption will be withdrawn and they will have to pay dues on pro-rata basis.
Surprisingly, while the CM announced goodies for the mining industry there was nothing in the budget for the Tourism industry.
Also, while sops were announced for the mining industry the CM burdened the common man with an increase in VAT on petrol from existing 15 per cent to 22 per cent which would make petrol costlier by at least Rs 4.
Supposedly “addressing the coconut issue’, the Chief Minister announced the formation of a Coconut Development Board, headed by a farming expert. He also announced that those wanting to cut coconut trees would now require mandatory NOC from the Department of Agriculture. Besides, the government also increased the support price for coconut from Rs 8 to Rs 10 per piece.
For the fisherfolk, the Chief Minister announced 50 per cent subsidy for purchase of nets for traditional ramponkars. Besides, the petrol quota for canoes has been increased from Rs 1200 to Rs 1700. Parsekar also announced a new scheme for crab, mussel and oyster farming.
In a move aimed at pleasing government servants, he announced that the State would immediately implement the 7th pay recommendations, once accepted by the Central government. Parsekar said that for this a budgetary provision has already been made. Parsekar also announced increase in age limits for government jobs. “I propose to increase the age limit for government job be enhanced to 45 years,” he said.
In the social welfare sector, Parsekar announced that the Griha Aadhar monthly support for women would be increased from Rs 1200 to Rs 1500.
For education, Parsekar maintained that primary education should be in the mother tongue and announced a special grant of Rs 400 per student for schools imparting education in Konkani/ Marathi medium.
Meanwhile the casino entry fee has been marginally increased from Rs 700 to Rs 1000, the annual recurring fee for casinos raised to a minimum of Rs 8 cr for offshore casinos, from the earlier Rs 5 cr, while for onshore casinos it will be Rs 3.5 crore. These figures seem huge but in the context of the amount of money the industry churns out, this is small change
Purchase of vehicles will also get dearer with increase in registration taxes. A two-wheeler up to Rs 1.5 lakh will invite tax of 10% while four wheelers above Rs 6 lakhs will be taxed at 9 per cent.
Luxury cars costing from Rs 15 lakh to 25 lakhs would be charged 15% tax while those above Rs 25 lakh would be charged 18% tax. This is above the VAT increase announced for SUVs and top-end bikes.
