SALIENT FEATURES- BUDGET-2000-01

Full Text of Budget 2000

Economic Survey, 1999-2000- prepared and presented for the first time.

Sales Tax receipts mobilised to the extent of Rs.335 crore in 1999-2000 representing an increase of Rs.81.00 crore, that is, 32 % over 1998–99 and 15.2 % over the budgeted estimates.

Collections under Sales Tax Amnesty Scheme stand at Rs.8.00 crore.

Revenue expenditure in 1999-2000 increased on account of revised pay scales of teaching staff of colleges and universities ( Rs.14.00 crore), reduction in retirement age of government employees from 60 to 58 (Rs.33.00 crore) and revision of budgetary estimates on salary due to Vth pay Commission arrears (Rs.23.50 crore).

Accelerated Irrigation benefit programme loan- not availed of in 1999-2000 due to delay in the constitution of Tillari Irrigation Corporation.

A short-term deposit of Rs.47.00 crore from EDC and IDC to accommodate current year's closing deficit.

Rs. 20 crore of the borrowing paid back ahead of the schedule.

Current year closing deficit stands at (-) Rs.11.50 crore as against the opening deficit of (-) Rs.13.14 crore.

Fiscal deficit deteriorated from minus Rs. 303.50 crore in 1999-2000 B.E to minus Rs. 384.17 crore in 1999-2000 R.E.

Share in Central taxes and non-plan grants to bring additional Rs.30.00 crore over Budget Estimates of 2000-01.

Under uniform floor rates of sales tax, a number of items exempted.

Lower limit of levy of Additional Sales tax up from annual turn-over of Rs.20.00 lakhs to Rs.2.00 crore. New rates of Additional Tax are as follows

1. Upto Rs. 2 crore Annual turn-over Nil
2. Rs. 2 to 7 crore 15%
3. Rs. 7 to 15 crore 20%
4. Over Ts. 15 crore 25%

Computers, accessories and other IT products exempted from the levy of sales tax.

Petrol prices increase by 3%.

Diesel, naphtha and furnace to have a sales tax levy at the rate of 18 %.

Uniform floor rates under sales tax to fetch an additional Rs. 35.00 crore in 2000-01.

Levy of entry tax on all goods entering the state except those meant for sale in the State. An accrual of Rs.25.00 crore in 2000-01 on account of Entry tax expected. SSI units exempted from levy of entry tax except ferro- alloy, pharmaceuticals and chemical units.

Extension of Income and Sales Tax exemption to new industries for another two years. Exemption applicable to SSI units for 10 years and MSI / LSI for 5 years except for those industrial units which are polluting in nature.

Optional schemes for industrial units enjoying sales tax exemption allowing for collection, retention of a portion as subsidy and interest free loan and deposit of the remaining part.

Renewal of Excise license fees for manufacture of IMFL up to Rs. 40,000; for manufacture of Beer up to Rs. 1.50 lakh; manufacture of Wine up to Rs. 20,000; manufacture of Rectified Spirit/ Grain Spirit/ Malt Spirit/ Additives up to Rs. 75,000 and manufacture of Country Liquor out of rectified spirit up to Rs. 20,000.

The wholesale vendors of IMFL with annual turn over of Rs. 10.00 lakh- Annual license fee of Rs.25,000 and similar vendors of country liquor Rs. 20,000. Whole sale vendors of IMFL with annual turn over of less than Rs. 10.00 lakh to be charged annual license fee of Rs. 10,000 in cities, Rs. 7,000 in towns and coastal villages and Rs. 4,000 in villages. Similarly whole sale vendors of country liquor will be charged Rs. 6,000, Rs. 3,500 and Rs. 2,000 per annum as license fee in cities, towns & coastal villages and villages respectively.

Retail vendors of foreign liquor 'A' category to be levied an annual license fee of Rs. 55,000; 'B' category Rs. 40,000 and other shops Rs. 25,000. Such licenses shall be able to effect sale at authorized additional points by paying an additional 50 percent of the license fee. Retail vendors of IMFL/ Country Liquor 'A' category to be charged Rs. 25,000 and for 'B' category Rs. 16,000 per annum as license fee.

Retail vendors of IMFL/ Country Liquor (consumption) to be charged an annual license fee of Rs. 5,000 in cities, Rs. 3,000 in towns and coastal villages and Rs. 1,500 in villages. Similar vendors of country liquor to be charged Rs. 1,500, Rs. 1,000 and Rs. 700 respectively. Retail vendors of packed bottles to be charged Rs. 5,000 in cities, Rs.3,000 in towns and coastal villages and Rs. 1,500 in villages.

Dual duty structure for IMFL based on Maximum Retail Price. Duty on IMFL for brands for MRP below Rs. 50.00 per 750 ml - Rs. 12 per bulk litre. For others- existing rate of Rs. 35 per proof litre. Additional license fee of Rs.1.5 lakhs for bars and restaurants in hotels desirous of serving clientele for specified number of hours beyond 11pm.

Excise duty on mild beers reduced (less than 5% V/V) from Rs.9/- per bulk litre to Rs.8/- per bulk litre. Duty on Strong beers raised from Rs.12/- per bulk litre to Rs.14/- per bulk litre. Manufacturers of wine using rectified spirit - Rs.6/- per bulk litre.

Beer licenses to allow selling only packed cans/ bottles and charged annual license fee. Bottling fees on IMFL/beer to be charged at Rs.2.50/- per case of 9 bulk litres.

The revision of declared value of land and consequent collection of stamp duty to generate additional Rs.15.00 crore in 2000-01.

Tourism sector to be levied power and water tariffs at par with industry. Rationalisation of existing luxury tax structure by introduction of two slab rates only of 8% and 12% as against the existing slab rates of 5, 10 and 15 %. Tax to be levied on entire billing pattern. Luxury tax on food and beverages reduced from existing slabs of 4%, 8%, 12% and 15% to 4%, 8%, 10% and 12% respectively.

Imposing fees on hoardings throughout the state at the rate of Rs.4,000 per hoardings per year or part thereof.

The application fee for the grant of new licenses for electronic gaming/ slot machines to Hotels- Rs. 5 lakh for a set of 20 machines/ stages or less for five star hotels; Annual recurring fee at the rate of Rs. 30,000 for the mother machine and Rs. 20,000 per additional stage upto a maximum of Rs. 5 lakh for a set of 20 machines or less. Stand alone machine to be levied license fee equal to mother machine. For electronic gaming/ slot machines provided on board ships/boats- Annual license fee of Rs. 50 lakh for a set of 20 machines/ stages/ tables or less. The security deposit chargeable in all cases, to be equal to one year's recurring fee.

Green Goa Fund- Cess on the mining activity including trans-shipment of mineral ore from one mode of surface transport to another, at the rate of Rs.2 per tonne of ore extracted within the State and Rs.5 per tonne of ore (including coal) brought into the State for the purpose of shipping. This is likely to generate an annual return of approximately Rs. 6.00 crore. Proceeds to be utilized for the purpose of improving water supply and roads as well as afforestation and control of dust pollution in the regions directly affected by mining activity.

Plastic Containment Fund- Cess to be levied on industries using plastic packaging material. Mineral water bottles using plastic packaging will attract a levy of 50 paise per bottle as cess. The revenue accrual on account of imposition of this cess is expected to be in the region of Rs. 3 crore.

Beaches Improvement Fund- Fund will comprise an annual license fee of Rs.25,000 on shacks, contributions from the State Government, Central Government, hotel industry and other stake-holders of tourism. The schemes would entail removal of garbage from the beaches and its eventual disposal.

Dairy Development Fund- A cess of 15 paise per litre on milk for the purpose of promoting dairy development. The proceeds from the cess will be used to augment the cattle population, which in turn will enhance the milk production in the State.

VRS -LEANER GOVERNMENT YOUNGER GOVERNMENT' scheme under which forty percent of the posts falling vacant owing to retirements will be abolished with immediate effect and 60% of the posts will be filled up progressively in stages through Staff Recruitment and Training School.

Additional resource mobilisation measures outlined above to fetch an amount exceeding Rs.75.00 crore.

Budget deficit stands at minus Rs.11.69 crore. To be wiped off by larger tax devolution from GOI and stricter enforcement of Sales Tax/ Excise laws during the course of the year.

Revenue deficit budgeted at (-) Rs.159.88 crore as compared to (-) Rs. 242.21 crore in current year.

Fiscal deficit contained at (-) Rs. 380.18 crore.

In the Budget of 2000-01, focus on Water supply works for which a loan of around Rs.48.00 crore to be negotiated with HUDCO. Opa and Assnora water works to be accorded the highest priority thereby meeting the water supply needs of Ponda, Panaji and Bardez including Porvorim. Consequent upon the constitution of the Tillari Irrigation Corporation, a substantial outlay has been earmarked for Tillari project to the extent of around Rs.75.00 crore.

Active consideration of an enhancement in college fees to reduce subsidy burden on account of Education where budgetary allocation is more than Rs.200.00 crore. Outlay on health services is close to Rs.60.00 core in the budget of 2000-01.

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