Babus to cost exchequer Rs 10,000 cr

“We will have to strengthen the tax collection so that the rate of tax collection can be increased from 17 per cent at present to 20 per cent in the next fiscal. While we will go for market borrowing,we have also asked the Centre to bear half the burden of the revised salaries for the state employees,” the finance minister said.

Considering the model code of conduct,Dasgupta presented a vote-on-account for four months beginning April 1.

“Since this is an elected government,we can present a full budget but because of the model code of conduct we had to present just a vote-on-account to meet our expenditures for four months,” the finance minister said.

There was neither any fresh tax proposal nor tax relief or announcement of any fresh scheme in the budget.

Instead,Dasgupta spelt out the various schemes he had announced on February 23 as part of Rs 5,100-crore stimulus package to fight the recession.

“Recession has adversely affected the country’s economy and the state could not be immune to it. We have urged the Centre to arrange a discussion between the Centre and the states on how to tackle it. We will have to develop a state-level programme to generate employment and income,” the finance minister said.

He also portrayed a bright picture for agricultural and industrial growth. “In agriculture and allied activities while the national growth rate in the present year has been 2.6 per cent,at the state level it is 4.4 per cent. Similarly,while the national rate of growth of production in industry has been 4.1 per cent,the state registered 5.8 per cent growth,” he said in his speech.