|
More importantly, the state’s economy is on a roll and this has brought in
more revenues to meet our expenditure commitments. The state is posed to achieve
a GDP growth rate of 10.37% in 2007-08 as against 8.87% for in 2006-07.
The
farm sector has recovered fully and we are targeting a
growth rate of around 4.5% for the Eleventh Plan.
Foodgrain production is expected to touch 180 lakh
tonnes, which is 24 lakh tonnes more than the average
production in the triennium ending March 31, 2007.
We have also embarked on a massive Jala Yagnam project
to provide assured canal-based irrigation. When the
projected is completed, our state will be able to
contribute to the country’s food security the same way
as Punjab, Haryana and West Bengal did during the first
green revolution.
Alongside, investments are also pouring into the state
with several companies, including those in the
manufacturing and services sector setting up base here.
Our manufacturing sector has been growing at over 8%
during the last three years. Software exports have
registered an over 50% yearly growth over the last three
years against the national average of 35%.
We introduced VAT in April 2005 in lieu of sales tax.
Revenues from VAT and central sales tax (CST) grew by
24% to top Rs 15,587 crore in 2006-07. We have budgeted
collections at Rs 20,852 crore from these two sources in
2007-08, marking an increase of 34%. Our VAT revenues
have grown by around 22% up to December 2007, which is
the highest for the country.
Clearly, the effective implementation of VAT has helped
widen the tax net and made tax evasion difficult.
Compliance on the part of dealers has improved due to a
host of factors including self-assessment, availability
of input tax credit at every stage in the value chain
and a reduction in trade diversion due to uniformity in
tax rates across states. Rate wars between states have
ended to a large extent.
VAT revenues have been buoyant despite several
constraints—including a cut in the CST from 4% to 3%,
exemption of products including coir, khandasari sugar
from VAT and a reduction in VAT rates of many items from
12.5% to 4% and poor revenue realisation from petroleum
products.
So I personally believe that both the implementation of
VAT and higher economic growth are responsible for
higher tax realisations in the state.
Two years from now, the Centre proposes to introduce a
goods and services tax for an efficient, effective and
tax payer friendly system in our country. All states
want the power to levy service tax. We have the
administrative machinery and collections will go up if
the GoI agrees to it. We have given our views on the
model GST to the empowered committee of state finance
ministers.
I expect the coming Budget to have policy interventions
that would provide stimulus to growth, especially for
the manufacturing sector. It is crucial to sustain
buoyancy in economic growth and also step up employment
potential in the country.
Source
: epaper.timesofindia.com,
dated 08/02/2008
|
