State banks on building industry to raise funds

Mar 19 2015 : The Times of India (Mumbai)

Budget Targets Rs 5,000 Crore From Premium On Extra FSI
The construction industry is the focus of revenue generation in the first budget of the Devendra Fadnavisled BJP government in the state. The government, said the CM, hopes to raise Rs 3,5005,000 crore from premium on additional floor space index. In Mumbai, the FSI limit will be enhanced from 0.33 to 0.6.

The government also plans to charge a premium linked to the market value of land for allowing change of use.

The state's share in central taxes will go up from Rs 17,606 crore to Rs 29,061 crore, bringing in additional revenue. Another Rs 643 crore will be mopped up from various taxes.

Eating out is set to get marginally cheaper as the government has decided to do away with sales tax on service tax and VAT.

There is something in the budget for Mumbai too: free wi-fi in parts of the city , Rs 110 crore for Metro III, Rs 100 crore for the Shivaji and Ambedkar memorials. Besides, the city will get a portion of the Rs 52 crore for development of tourism amenities and the Sanjay Gandhi National Park has been included in the Rs 191 crore for upgradation of national parks.

Finance minister Sudhir Mungantiwar presented a deficit budget of Rs 17.77 lakh crore for 2015-16. Fiscal deficit is estimated at Rs 5.55 lakh crore against Rs 5.12 crore in 2014-15.The revenue deficit is estimated at Rs 3.94 lakh crore; it was Rs 3.62 lakh crore in 2014-15. The planned outlay amounts to Rs 54,999 crore. Of this, the major outlay is Rs 4,700 crore for agriculture and allied services, and Rs 7,620 crore for irrigation, through which it plans to complete 38 irrigation projects and bring 69,000 hectares under irrigation. For transport, the budget has provided Rs 6,876 crore, Rs 3,726 crore for power and Rs 23,349 crore for social and community services.

The debt stock for the next financial year is expected to increase from Rs 3.02 lakh crore in 2014-15 to Rs 3.33 lakh crore, a rise of Rs 31,000 crore on account of increased interest payment.

Fadnavis said his party is not averse to taking loans but will do so only to create capital assets. The budget has increased the outlay for capital expenditure from Rs 23,342 crore in 2014-15 to Rs 27,104 crore. The government has budgeted Rs 884 crore to build an ambitious one lakh “quality“ houses with toilet facilities under the Indira Awas Yojana, Ramai Awas Yojana, Shabari Adivasi Gharkul Yojana and Rajiv Gandhi Nivara Yojana.

Keeping the BJP's promise to traders, Mungantiwar announced that Local Body Tax (LBT) applicable in 26 corporations across the state will be abolished from August 1. Octroi in Mumbai will, however, continue till it is replaced with the Goods and Services Tax in 2016. Fadnavis said the government would ensure Mumbaikars are not doubly taxed on account of octroi and abolition of LBT.

In line with the Pradhan Mantri Gram Sadak Yojana, to create all-weather roads connecting villages, the state government has launched the Mukhyamantri Gram Marg Yojana with a budget of Rs 350 crore. Cancer medicines and LED bulbs will become cheap er, while country liquor will be costlier. Prime Minister Narendra Modi's influence on the budget is evident as schemes such as Beti Bachao, Sansad Adarsh Gram Yojana, Swachcha Bharat Abhiyan and Make in Maharashtra were included in the budget speech.

The Aamdar Adarsh Gaon Yojana has been allocated Rs 25 crore. The Beti Bachao Beti Padhao scheme has been transformed into Mazhi Kanya Bhagyashree Yojana, for which Rs 200 crore has been set aside, while for Swachcha Bharat Abhiyan, an outlay of Rs 710 crore has been made.

Mungantiwar also announced new schemes named after RSS ideologues. Pandit Deendayal Upadhyay Gharkul Jaga Kharedi Arthsahayya Yojana is for families below poverty line who want to build a house. Under the scheme the government will provide Rs 50,000 to buy land.

Shyamaprasad Mukherjee Jana Van Vikas Yojana is to increase forest cover and forest management, while the Pramod Mahajan Kaushalya Vikas Yojana is for skill development.
Mumbai Property Search
Live Project Updates