Bihar Budget Reports-- 2009

Times of India Reports :-

No slowdown effect, surplus Bihar budget

PATNA: The state government has urged the Centre to announce a stimulus package for the state to meet the rising expenditure. It, however,
declared there is absolutely no impact of the global meltdown on Bihar and its tax collection has increased.

This was announced by deputy chief minister Sushil Kumar Modi while presenting the Rs 47,446-crore budget for the year 2009-10 in the state assembly on Wednesday.

Modi, who also holds the finance portfolio, said the budget has a revenue surplus of Rs 6,122 crore and the government will not be required to take loan for meeting expenses on salary, pension and interest.

“The budget for 2009-10 is a budget of revenue and primary surplus, where fiscal deficit is being contained within the limits prescribed by the Fiscal Responsibility and Budget Management (FRBM) Act. This revenue surplus would be used for investment
in physical infrastructure and generating productive capital assets like roads, buildings, power, schools, health centres and irrigation schemes,” Modi declared in the assembly.

He claimed the budget is likely to achieve two important debt management landmarks. “The public debt to gross state domestic product (GSDP) ratio would be brought down to 30% and the ratio of interest payments on revenue receipts would be brought down to just under 10%.

This is an important achievement as it would make Bihar one of the lowest indebted states in the country and improve its credit rating and help it borrow at cheaper interest rates,” he said.

Modi reminded that the size of the state plan had increased from Rs 13,500 crore to Rs 16,000 crore in 2009-10, of which Rs 2,899 crore will be spent on SC/ST component scheme and Rs 1,299 crore on women-specific schemes.

About the impact of the economic slowdown in the world and in India, Modi said the country’s growth rate, which had reached 9%, has slumped to 7% and the loss in the revenue might be to the tune of Rs 47,180 crore. As a result, the state share in central taxes will decline and Bihar’s share is feared to be cut by Rs 2,000 crore in 2008-09.

He also referred to the implementation of Sixth Pay Commission recommendations and said the state is presently spending Rs 11,405 crore on salary and pension which is expected to go up to Rs 16,000 crore in 2009-10.

link form Times of India

The Telegraph Reports:-

Budget boost to Bihar’s tax payers

Patna, Feb. 25: Bihar finance minister Sushil Kumar Modi today presented a surplus budget for 2009-10 of Rs 47,446 crore proposing sumptuous expenditure on education, infrastructure, power and agriculture to appease the electorate ahead of the general election.

An interesting bit of the budget is the proposed scheme called Bhamashan Samman Yojana honouring traders who have paid the highest taxes. The commercial tax department has identified as many as 138 traders to honour under this scheme.

Modi, amid Opposition’s angry interruptions, read out an allotment of Rs 8,069.93 crore for education — the highest amount for education in Bihar’s budget history. Out of the total outlay, the budget proposes Rs 803.45 crore for midday meals.

It also proposes to spend Rs 3,800 crore on the recruitment of 80,000 teachers besides creating 40,000 additional classes and providing free books to girls belonging to SC, ST, other backward classes and minorities.

The budget also proposes Rs 37 crore for three new engineering colleges at Chapra, Madhepura and Sitamarhi besides polytechnics at Lakhisarai, Dehri, Katihar, Bettiah, Araria and Asthawan and development of a sports complex at Patna.

Modi also promised Rs 2565.13 crore for roads. The outlay for roads is 16.03 per cent of the total. The government reportedly proposes to build 410 bridges during the 2009-10 fiscal at the expense of Rs 400 crore.

The budget also proposes to hike the outlay on the irrigation projects to give a boost to the green sector.

It proposes to spend Rs 1,938.72 crore during 2009-10 on irrigation projects against the Rs 1,653.79 crore expenditure in the last fiscal.

The budget also proposes an outlay of Rs 702 crore for modernisation of the Muzaffapur and Barauni thermal power stations and has earmarked Rs 264.52 crore for the acquisition of land for industries.

The budget proposes Rs 11.54 crore for the setting up a knowledge city to be equipped with IT parks and academy.

In a bid to woo the Muslim vote, the budget promises a sum of Rs 10,000 to 1,400 Muslim divorced women along with special training to push them toards self-employment.

Besides, the plans include buildings in memory of Muslim personalities such as Maulana Mazhrul Haq, Abdul Qayum Ansari and Ghulam Sarwar.
Link to telegraph