NEW DELHI; The National Front’s first budget with a deficit of Rs. 72.06 billion for the year 1990-91 presented to parliament Monday raises the country’s outlay on defense to Rs 157,500 million.
The budget waives loans up to Rs 10,000 for farmers as also raises fertilizers subsidy in keeping with the National Front Manifesto promises of late last year.
Finance Minister Dandavate said the increase in defense outlay, of about 8.6 percent over the last year’s revised estimate, was “‘a direct result of the situation on the border.”
The Finance Minister proposed a number of schemes to mop up black money including a gift tax scheme. At present gifts are taxed at the hands of the donor.
Other measures to mop up black money included revamping of the economic intelligence bureau recasting of the act on “benami” (nameless) transactions to make it more difficult to hold wealth in “Benami” form and greater reliance on general non-discretionary fiscal and financial instruments.
Presenting a savings oriented budget, Dandavate proposed to provide marginal relief in income tax to the middle class by raising the exemption limit to Rs 22,000 from Rs 18.000.
While increasing the tax on petrol, the finance minister exempted kerosene and high speed diesel and LPG used by poorer sections and in rural areas from any increase in excise duty.
Fresh taxes have been levied ‘on tier tubes, postal articles refrigerators, Cars, air conditioners and VCR’s.
The proposals are to yield Rs 1959 corer thus reducing the deficit from Rs 9156 corers at existing rates of taxation.
The budget drew flak even from allies of the Govt as back breaking for the poor in India.
Article extracted from this publication >> March 23, 1990
