the jal and bhoomipujan for the memorial of chhatrapati ...spent under this scheme and about rs. 246...

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Honourable Sir,

It is now two years since a development orientedgovernment has been in existence in the state. I amsubmitting my third development oriented budget which isdedicated to the 12 crore people of Maharashtra.

The Jal and Bhoomipujan for the memorial of ChhatrapatiShivaji Maharaj Memorial in the Arabian sea close toMumbai was completed on 24th December 2016 in the handsof honourable Prime Minister of India.

Our Government has taken a number of initiatives in manyareas. Jalayukta Shivar Yojana, Pradhan Mantri KrishiSinchanYojana, Pradhan Mantri Peek Vima Yojana are someof the important programmes. Maharashtra continuous to bethe leading state in industrial development and theGovernment has come out with a slew of policies for promotingdevelopment and attracting investment. A number ofimaginative steps have been taken for upgrading the qualityof school, higher and technical education. Smart city, themetros for Mumbai, Pune, Nagpur, Mihan project are somethe initiatives for urban development. The Right to Services,Right to Information are now available online. Due to suchmeasures, the growth rate of state has increased from 5.4%in 2014 to 9.4% in 2016-17. The growth rate of Maharashtrais two percent more than that of all India growth rate and weare expecting to touch double digit growth in future.

Agriculture & Allied Sector

About 50% of the population depend on agriculture, butagriculture contributes only 10.5% of the state GSDP. It isknown that main challenge to agriculture is low productivitycaused by various factors, including lack of irrigation and total

MAHARASHTRA BUDGET 2017-18

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dependency on monsoons. The government is committed toincrease the investment in agriculture and initiate a numberof steps to provide for more irrigation, power, ruralcommunication, processing and monitoring facilities,technology and credit. It thereby hopes to double theagriculture income by 2021.

1. A sum of Rs. 8233 crore is being allocated in 2017-18for the Water Resources Department. As committed by me inthe last two budgets, one hundred percent funds are releasedto the departments.

2. A sum of Rs. 2812 crore is being allocated for the projectunder Prime Ministers Krishi Sinchai Yojana, in 2017-18. Itis expected that about 82,600 hectares will come underirrigation through these projects.

3. It has been decided to take up distribution of 7 TMCwater in the next 4 years through the Krishna Marathwadaproject which is a boon for Marathwada. As it will not bepossible to meet the cost of this project from available resourceswithin the framework of Hon Governor’s formula, a sum ofRs. 250 crore has been kept outside the formula of allocation,with the permission of Hon. Governor. This critical projectwill help in irrigating 25,798 hectares and 8147 hectors inthe drought prone districts of Osmanabad and Beedrespectively. The project will also provide drinking water to288 villages in 9 talukas.

4. Jalayukta Shivar is the flagship programme of the Stateand it is conceptualised as a permanent solution to therecurring droughts. It is proposed to make 5000 villagesdrought resistant every year. So far Rs. 1600 crore has beenspent under this scheme and about Rs. 246 crore of works hasbeen implemented by public participation. A sum of Rs.1200crore has been earmarked for Jalayukta Shivar in 2017-18.In addition, the funds available from District Plan and centralschemes will be topped for the campaign.

WaterResources

JalyuktaShivar


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5. Under the Mahatma Gandhi NREGA 1,22,562 wellshave been constructed since 2011-12, of which 59, 348 wellshave been completed in last two years. A sum of Rs. 225 crorehas been kept for wells and for taking up farm ponds ‘ondemand’.

6. It is the policy of this Government to bring maximumarea under micro irrigation. it is propose bring in Israeli microirrigation technology for full utilisation of the capacity of theArvi Lift Irrigation project in Wardha district and in BemblaProject, Yavatmal. An amount of Rs.100 crore is being providedfor this project in 2017-18.

7. There is a saving of 30-40% in water use by use of microirrigation. It is proposed to bring maximum hectares nowunder sugarcane under micro irrigation. It is proposed to givesubsidised interest for this purpose.

8. To provide electrification for agriculture pumps and toclear the backlog in eastern Vidharbha, and in other parts ofthe State an amount of Rs. 979.10 crore is being provided in2017-18.

9. An amount of Rs. 125.64 crore is earmarked underDr. Panjabrao Deshmukh Interest Subsidy Scheme.

10. Marketing Department is taking a number of steps toenable farmers get remunerative prices for their produce anddouble their income. The support includes providing godowns,grading of farm produce, strengthening competition throughdirect marketingof products and to establish Agro marketingHub at various places of the state. The scope of Sant ShiromaniShri Savata Mali Weekly market Abhiyan will be widenedand interest at subsidised rate will be provided to farmerswho choose to take loans by pledging their farm produce ingodowns.

11. There is now free market for sale of farm produceconsequent to the repealing of APMC Act. A new scheme isproposed to be launched which will provide refrigerated vansto facilitate movement of farm products. Required funds willbe made available for this purpose.

Wells andform

ponds

MicroIrrigation

AgriculturePumps

InterestConcession

Marketing

Cold VanScheme


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Necesssary fund will make available for the programme ofcashewnut plantation, processing in Sindhudurg, Ratrnagiri,Raigad, Thane & Palghar districts of Kokan.

12. It is proposed to double the agricultural income by Year2021. To enable this, Government has decided to focus onirrigation, electricity, farm roads, food processing, agriculturaltechnology, marketing, group farming and agricultural credit.For this purpose, Farmer Producer Companies and farmer’sgroup are being organised. This project will be startedinitiallyinselected villages. The group would need at least 20 farmersand 100 acre land minimum agricultural land, but no farmerwith more than 10 acres will be entitled to join this group.Rs.200 crore is being earmarked in 2017-18 for this project.After seeing the results and response, this project will beexpanded to other parts of the State.

13. To cope with climate change and relatedvulnerabilities Nanaji Deshmukh Krishi Sanjeevani projectis being launched in 4000 villages in Marathwada and 1000villages in Purna basin saline tract with World Bankassistance.

14. Dr. Ambedkar Krishi Swavlamban Yojana is beingextended to schedule tribes besides the Schedule Castebeneficiaries. An amount of Rs. 92 crore is earmarked in 2017-18.

15. So far, 80 lakh farmers have received the soil healthcard.

Government intends to establish Government AgricultureColleges at Yavatmal, Nashik and Peth, Dist Sangli.

16. The Government is committed that the farmers shouldbecome debt free. At present, 31.57 lakh farmers out of 1.36crore farmers are indebted at present and due to this theyface the risk of going out of the ambit of institutional credit. Ifthe farmer is to get crop loan in future then it is necessary torepay his debts. it is estimated that the total institutionalindebtness is 30,500 crore. The State Government hasincreased the investment in agriculture sector so that thefarmer comes out of the debt trap. If the huge collective

GroupFarmingScheme

CashewnutProcessing

Indebtnessof

farmers


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indebtedness is to be written of it will have an impact oninvestment in the agriculture sector.Further, there is noassurance that the farmer will be perennially out of the debttrap. For this purpose the State Government has soughtCentral assistance. We make it clear that the state will alsogive it support and cooperationfor any effort by the CentralGovernment to reduce the farmer”s old debts.

Youth Skill Development and Employment

17. About 25% of the population belong to the 18-30 agegroup. Pramod Mahajan KaushalyaUdyogathaVikasAbhiyanis under implementation to give skill training for youths inthis age category. 1970 training institutions have been listedto give training to 1.22 lakh youths. The training has startedand 57% of the trainees are women.

18. A MoU has been signed with 35 industrial groups and28 MoU are operational for giving skill training to youth andto upgrade the ITI’s in the State under the above Scheme.A sum of Rs.99 crore has been provided for the Abhiyan in2017-18.

19. To make available skilled masons for houseconstruction work, it is proposed to give training to 10,000masons (gavandis) by associating then in the Rural HousingProject. This will give them an opportunity for both skillup-gradation and employment.

20. The “Deen Dayal Upadhyaya GraminKoushalyaYojana” is a central scheme and provides for training to youthsin 15-35 age group. It provides for both training and followup employment. It is proposed to give training to 21597youths and provide them employment in the organised sector.An amount of Rs. 59.66 crore has been provided in 2017-18.

21. About 4.09 lakh works are under progress in MahatmaGandhi NREGA. It is expected that 7.25 crore mandays willbe created under this Scheme this year. This is a demandbased scheme. The wage rate will be increased from present


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Rs. 192 per day to Rs. 201 per day from 1st April 2017. It isexpected that expenditure will be around Rs. 2800 crore in2017-18 in this scheme.

22. To promote backyard poultry, intensive poultrydevelopment blocks will be established through Public PrivatePartnership (PPP) route in 302 blocks of the state.

23. Animal Husbandry is an integrated part of rural lifeand farming. It is proposed to establish 349 mobile veterinarydispensaries to give timely veterinary treatment to animals.

24. Sheep units will be made available to traditional sheepre-earning communities with 75% subsidy. The required fundswill be made available and after evaluating the response andimpact, the scheme will be considered for further expansion.

25. It is proposed to create local employment throughvarious activities like crab farming, oyster culture and othersimilar activities as well as by promotingeco tourism inmangrove forest areas. This will be implemented through thelocal Mangrove Protection Committees. For this purpose anamount of Rs.15 crore is being earmarked in 2017-18.

A sub centre for crab hatchery is being created inSindhudurg District on the lines of the centre now operationalin Tamilnadu. A sum of Rs.9.31 crore is provided for thisinitiative in 2017-18. Likewise prawn hatcheries will also bedeveloped.

26. To promote bamboo, it is proposed to create a multistake holder company. For this purpose a sum of Rs. 15 croreis being provided in 2017-18.

27. Maharashtra has almost 3 crore and 99 lakhs labourersin the unorganised sector. The Government has decided to setup a separate Welfare Board for this very important segmentof society.

BackyardPoultry


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28. The Government has decided to focus on employmentgeneration this year. At present a number of schemes andprogrammes to promote and provide employment are beingimplemented through many departments. It is proposed tocreate a monitoring cell in Planning Department to coordinateand ensure effective implementation of various employmentschemes of the Government.

29. The Economics department of Mumbai University isone of the oldest in India. Mumbai University is alsocelebrating its 160th Year. To coincide with this it is proposedto give support to the efforts to upgrade the EconomicsDepartment as ‘Mumbai School of Economics and PublicPolicy’. A sum of Rs.25 crore will be provided to MumbaiUniversity in next five years for this educational initiative.

30. RUSA is an initiative of the Central Government toupgrade the quality of higher education. It is proposed toprovide Rs.40 crore as State share for this programme in2017-18.

31. It is proposed to start courses at the National LawUniversity at Aurangabad from this academic year. Anamount of Rs.39.28 crore is being provided in 2017-18 for thethree National Law Universities in Maharashtra.

32. It has been decided to start a Sainik school atChandrapur on the lines of the well-known Sainik school atSatara. An amount of Rs. 200 crore will be made available instages for this project which is implemented in collaborationwith Ministry of Defence, Government of India.

Infrastructure – Roads

33. Infrastructure is critical for development. “Americanroads are not good because America is rich, but America isrich because American roads are good.” are the famous wordsof President Kennedy. Government gives most attention to

ChandrapurSainikSchool


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road development and improvement. As against Rs.4347 crorelast year a sum of Rs. 7000 crore is being made available in2017-18.

34. 195 works are proposed to be taken up under theHybrid Annuity Road Programme valuing about Rs.30,000crore. For this, an amount of Rs. 3,500 has been allotted in2017-18. The survey and estimation will be done as per lederprocessand will available in PWD website. It is expected tocomplete 10,000 KMs in two years and thereafter they will bemaintained my contractor for next 10 years.

35. It has been decided that in future repair andmaintenance work willbe taken for 10 KM package only toensure proper supervision. Likewise, special attention will bebestowed on road up-gradation.

36. A special recurring facility has been established forreceiving Central Road Funds from Government of India. Asagainst 2,545.46 crore received between 2001-13, now afterthe new central government since 2014, an amount of Rs. 4546has been received. About 2,211 Kms of roads are beingimproved and construction of 252 big bridges taken up. I thankCentral Government for this support.

37. The length of national highways which was 4,571 KMsin Maharashtra till March, 2014 is now 15,504 KMs. Thusthere is an increase of 10,833 KMs just in last two years whichis matter of pride.

38. Work order has been given for a road length of 4700kms in the Chief Minister Gram Sadak Yojana. An amount ofRs.1630 crore is being provided for this scheme in 2017-18. Inaddition funds are being provided from the district schemes.Further, Rs.570 crore is being earmarked for Prime MinisterGram SadakYojana.

39. A sum of Rs.50 crore is being provided as share capitalfor the SPV which is being created in partnership with the

Railways


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Ministry of Railways. This will be implementing the threerail projects in the State. A sum of Rs.150 crore is beingprovided to complete the three projects namely Ahmednagar-Beed-Parli Vaijanath, Wardha-Yavatmal-Nanded and WadsaDesiganj- Gadchiroli.

40. The State Government through MaharashtraMaritime Board has entered into an agreement withJawaharlal Nehru Port Trust at Vadhvan near Dahanu.Maharashtra Maritime Board will hold 26% equity in projectSPV i.e. VadhavanPort Project Ltd. (VPPL). This is the firstcorporate major port being set up in the country with equityparticipation of State Government.

In order to expedite implementation of port connectivityprojects, the State Government through MaharashtraMaritime Board has entered into JV Agreements with portpromoters of Jaigad Port and Dighi Port for construction ofRailway Lines from Jaigad to Dighi and Dighi to Roha. Inboth project SPVs Maharashtra Maritime Board has equityparticipation of 11% each. An outlay of Rs. 70 crore has beenearmarked for this purpose in F.Y. 2017-18

Under Sagarmala Programme a sum of Rs. 17.95 crore havebeen received for development of 8 Jetties. The estimated costis Rs. 71.78 crore to be shared on 50-50 basis by centre andstate. The jetties at Goraie, Vasi, Bhaynder, Narangi, Karva-Desari, Manori, and Godbandar and Malvan have beenidentified for this purpose.

41. On the occasion of completion of 100 years of Samadhiof Shirdi Sai Baba, it is proposed to speedily develop ShirdiAirport. It is also proposed to develop the airports at Solapur,Karad, Amravati and Chandrapur. For this purpose anamount of Rs. 50 crore is provided in 2017-18. Likewise, anamount of Rs.100 crore is being provided for development ofMIHAN. The steps for up gradation of Nagpur Airport tointernational standards has been initiated.

Ports

Airports


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42. To save power and water is a national duty. For thispurpose, in future, all Government buildings will beconstructed as ‘green buildings’. This will lead to saving ofwater and electricity. The existing buildings with PublicWorks Department will also be retrofitted in stages.

43. A sum of Rs.361 crore is expected under the incentivescheme for non-conventional energy from Government ofIndia.

44. MahaNirmiti company is expected to generate 750watt solar energy in the first phase of its solar energy project.For this purpose sum of Rs.525 crore is proposed as sharecapital.

45. A sum of Rs.1,000 crore is provided for power subsidyto new units in Marathwada and Vidarbha.

46. The Government implements the “Package Schemeof Incentive” to encourage the setting up on new industries orthe industrially backward areas of the State. An outlay of Rs.2650 crore has been provided for the scheme in the budget of2017-18.

47. The Government has launched the Maharashtra StateIndustrial Cluster Development Scheme to improve thecompetitiveness and productivity of the small, minor andmedium scale industries in the state by providing commonfacilities. As provision of Rs.60 crore has been made for thisscheme in the 2017-18 budget.

48. Adequate area has been made available to investorsin Aurangabad under the Cluster Development Scheme. TheCentral Government will provide Rs. 570 crore for this schemein the year 2017-18.

49. Infrastructure development is a crucial objective of thisGovernment. However, investments in infrastructure requirea large sum of capital. In the next 5 years, we envisageapproximately a requirement of Rs.one lakh crore to finance

Energy

MAHAINFRA


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capital expenditure of key infrastructure projects. Given theconstraints in raising such huge amounts from availablesources of funds in the traditional method, there is a need tolook at alternative methods to generate funds forinfrastructure development. Keeping this is mind, thegovernment is proposing institutionalizing of an infrastructurefund for which a separate SPV is being considered namelyMAHAINFRA.

The SPV is proposed to act as a single window foraggregating the land held by various department forsecuritization which are neither in use nor expected to bedeveloped by the holding department for next 10 years. Theland will be escrowed to the SPV for generation of funds.Securitization of the land will aid in raising funds throughlow cost loans/ bonds/ investments from large investors withlong term horizons like national or international pension andinsurance funds.

Thus, the SPV would be a need based financing, fund raisingand advisory agency of the government. The government willalso recruit a team subject experts from varied fields forincreasing the efficiency of the institution. The governmentis also exploring the possibility of converting theMAHAINFRA into a Non-Banking Financial Company(NBFC) in lines with Gujarat State Financial Services Ltd

50. The Swachcha Bharat Mission (Rural) is a centrallysponsored scheme which is under implementation from2nd October 2014. So far 10 districts, 103 talukas & 14000Grampanchayats have been declared as open defection free(ODF) settlements. It is planned to make entire MaharashtraODF free by March 2018. An amount of Rs. 545.66 crore hasbeen earmarked from state and district level funds in2017-18 for this key programme.

51. The Chief Minister Rural Drinking Water Scheme isunder implementation to solve drinking water problem in


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rural and remote parts of the state. A sum of Rs. 300 crore isearmarked for this scheme. It is planned to take up 500 newwater supply schemes and release funds as per requirements.

52. A sum of Rs. 200 crore is being earmarked in 2017-18under Jalaswarajya Scheme-2 to provide assured qualitydrinking water to 39 periurban settlements.

53. Marathwada has been facing recurrent problem ofnonavailability of adequate drinking water due to recurrentdroughts caused by erratic monsoons. As a long term solutionto this issue, it is propose to go for an integrated drinking watergrid. For this purpose, as a first step, it is proposed to engagerenowned consultants, of international standards to do afeasibility survey.

54. The Government of Maharashtra is implementing theMaharashtra SuvarnaJayantiNagarotthan Mission toprovide basic urban infrastructure in all the Nagar Palikas/Nagar Parishads and ‘D’ class municipal corporations in theState. An amount of Rs. 1100 crore has been proposed for thismission in the budget of 2017-18.

55. Maharashtra has been a leading state in the SmartCities Programme of the Government of India. Pune andSolapur was selected in the first round and Kalyan-Dombivali,Nagpur, Nashik, Thane and Aurangabad have been selectedin the second round. Maharashtra is the only state to have 7cities selected under this programme. The budget of 2017-18proposes Rs. 1600 crore for the Central & State share of thisProgramme.

56. AMRUT (Atal Mission for Rejuvenation and UrbanTransformation) has been launched by the Government ofIndia to provide for basic infrastructure such as water supply,sewage, urban transport, and green spaces in urban areas.This mission will benefit 44 cities in the state covering 76% ofthe state’s urban population. A provision of Rs. 1870 crorehas been proposed in this budget as Central and State sharefor this mission.


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57. It is dream of everyone to have one home of his own.To enable realise this dream, construction of 2 lakh 50thousand house will be taken up in 2017-18. Under the PrimeMinister AwasYojana (Urban) in various cities and towns ofMaharashtra the state share for this centrally sponsoredscheme will be provided from budgetary provisions and theshelter fund.

58. The Government of India has initiated in the SwachaBharat Abhiyaan to provide a better environment to thecitizens by making the cities clean, healthy and beautiful. Thisambitious programme is being implemented with focus andrigour in the State and itis getting tremendous response fromthe people. We have proposed Rs 1605 crore for thisprogramme in the budget of 2016-17 to cover the Central andState Share.

59. Mumbai is the financial capital of the country. Thecitizen are hard pressed to match up to the pace of developmentof the growing metropolis. Hence he Government has takenup implementation of very large infrastructure projects inMumbai to improve the quality of life of the citizen in Mumbai.The metro network of Mumbai aims at strengthening thepublic transport system in the city.

The work on the Colaba-Bandra-Seepz( metro line – 3) hascommenced and work orders have been given for Dahisar –D. N. Nagar (metro line 2 A) and Dahisar – Andheri (Metroline 7). An outlay of Rs.710 crore has been proposed for theseMumbaimetro projects as well as the metro projects of Nagpurand Pune in this budget of 2017-18.

60. In addition, large infrastructure projects such as theSewri – Nhava Sheva Mumbai Trans Harbour Link, NaviMumbai International Airport, Navi Mumbai Metro Projectand Coastal Raods in Mumbai have been initiated. TheGovernment is taking all efforts to complete these projectsexpeditionary.


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61. It has been decided to upgrade the functionalMarathwada Cancer Centre at Aurangabad to a State LevelCancer Institute. For this purpose, a sum of Rs. 126 crore willbe provided from Central and State funds. Likewise, it ispropose to develop good quality cancer treatment centres atRevenue Divisional Headquarters.

62. Breast, uterus and oral cancers are the most commonform of cancers. Early detection and treatment leads toimprovement in 75% cases and reduces cancer fatalities. It isproposed to introduce mammography machines and otherrelated medical equipmentsin 253 government medicalhospitals , rural hospitals and the like. For this purpose anamount of Rs 43 crore is earmarked in 2017-18.

63. CT Scan machine will be installed in 31 hospitals forproper detectionof ailments . Rs. 54 crore is earmarked forthis purpose.

64. The scope of Rajiv Gandhi JeevandayeeArogyaYojanawill be widened and extended and a new Scheme MahatmaPhule Jana ArogyaYojana will be started from 2017-18.A sum of Rs.1,316 crore is earmarked for this scheme in2017-18.

65. Government of India is implementing the RuralHealth Mission from 2005. It is a major scheme of theGovernment and a sum of Rs.1549 is being provided fromCentral and State funds in 2017-18.

66. Likewise, the Rural Urban Mission is underimplementation from 2013-14. An amount of Rs. 211 crorewill be available for this Scheme.

67. An amount of Rs.559.30 crore is being made availablefor construction of medical colleges and attached hospitals in2017-18 and their necessary up gradation.

68. A treatment, training and research centre fortreatment of ‘Monkey Fever’- prevalent in the border areas ofMaharashtra-Goa-Karnataka will be established inSindhudurg District.


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Last year, a record breaking 2.83 crore trees were planted,which has been noted in Lima Book of Records. It is theendeavour of this Government to protect the environment andminimise pollution. The Government has started the NamaniChandrabhagha Abhiyan to clean up the river. I now declarea number of schemes to protect the environment.

69. A Centrally supported project to reduce pollution inMulaMutha River has been sanctioned for an amount ofRs.990.26 project. This effort is to be completed in six years.It is expected that about Rs.100 crore will be released thisyear.

70. A programme for environmental awareness has beentaken in twelve districts in the high schools. An amount ofRs.20 .88 crore has been earmarked for this programme.

71. To reduce man-animal conflict in areas adjoiningforests, Dr. Shyama Prasad Mukherjee Jan Van Vikas schemeis under active implementation. The scope of this scheme isbeing widened by including chain link fencing and gascylinder distribution. For this purpose an amount of Rs.25crore for this programme. Further, to support those whowilling wish to migrate out of Reserved Forests, it has beendecided to provide compensation at four times of their land. Asum of Rs.45 crore is being provided for this programme in2017-18.

72. It is proposed to start a Forest Fire Control trainingcentre in the existing Forest Academy complex atChandrapur.An amount of Rs.5 crore is provided for this purpose.

73. It is proposed to earmark an amount of Rs.80 crore in2017-18 for eco tourism projects in NavegoanNazira, Penchand other tiger projects.

74. It is proposed to continue the massive tree plantingdrive that was started in 2016. It is proposed to take up3 crore plantations in 2017, 13 crore plantations in 2018 and33 crore plantation in 2019 totalling 50 crore tree plants.


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75. An amount of Rs.7,231 crore is being provided forvarious Special Component Schemes for the welfare ofScheduled Castes. Of this Rs.2700 will be implemented atdistrict level.

76. It is proposed to provide Rs.1884.99 crore for SanjayGandhi Niradhar Anudhan Yojana and Sravan Bal SevaRajya Nivrutti Yojana .

77. An amount of Rs. 6754 crore is being provided underTribal Component Schemes.

78. Government of India is promoting ‘Stand Up IndiaYojana’ to promote entrepreneurship for scheduled castes andNava Baudha. An amount of Rs.25 crore will be provided forthis scheme .

79. To reduce malnourishment in tribal areas, and tostrengthen health of pregnant women and lactating mothers,and children between age of 7 months to 6 years Dr. AbdulKalam Amrut Ahaar Yojana has been started. The scope ofthis programme has been widened to provide benefit to 1.17lakh women and 7.61 children.

80. Godowns are being taken up on rent in tribal areas ofthe State, to store grains procured by the Tribal DevelopmentCorporation.

81. A separate department is being started for the welfareof VJNT, Special OBC, and OBC from 1st April 2017. Anamount of Rs,2384 crore is being made available in 2017-18for various programmes like hostels, ashramshala grants andscholarships.

82. Rajashree Shahu Maharaj Research Training andHuman Development Institute (SATHI) will be started topromote the overall development and welfare of OBC’s, SBCs,and DTNT communities.

ScheduledCaste

Sub-plan

TribalSub Plan

VJNT,OBC, SBC

Welfare


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83. For the comprehensive development of economicallyweaker sections, an amount of Rs.200 crore will be providedto Annasaheb Patil Arthik Mahas Vikas Mahamandal.Likewise an amount of Rs.200 crore will be provided to OBCCorporation and Rs. 50 crore for Shamrao Peje Konkan KunbiVikas Mahamandal.

84. Rs.350 crore is being provided for the welfare ofmonitories in the 2017-18 budget.

85. An amount of Rs. 125 crore is being provided toimprovement the settlement of minorities and for providingvarious basic facilities in rural and urban areas.

86. Training is being provided to minority categorystudents to appear for UPSC, MPSC, Banking services andother competitive exams. Further skill training is alsoprovided. An amount of Rs.8 crore is being provided for thisinitative.

87. An amount of Rs.310.57 crore is being provided forsupplementary nutrition to children in anganwadis .

88. State Women’s Commission has been constituted totake up Women’s related issues and for their empowerment.Rs.7.94 crore has been provided for the Women’s Commissionin this year’s budget.

89. Rs.133.84 crore has been provided in 2017-18 for theDeendayalAntyodyaYojana .

90. A new scheme to be called ‘Asmita’ will be started toprovide ‘sanitary napkins’ at subsidised rates to youngadolescent girls studying in ZP schools .

91. Smart Gram Yojana has been started on 21st Novemebr2016. This provides for healthy competition among GramPanchayats at Block and District levels . Successful villageswill receive Rs.10 lakhs and Rs.40 lakhs as prizes at talukaleveland district level respectively. Rs.53.80 crore has beenearmarked for this novel scheme.

Minority

Women

AsmitaScheme


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92. Housing for All is the motto of Government. 55,000houses will be constructed for Scheduled Castes under theRamayi Awaz Yojana. An amount of Rs.800 crore has beenprovided for this scheme. Further those who do not havehousesits of their own will get support from DeendayalUpadhaya Bhukhand Kharedi Yojana.

93. Swachcha Bharat Mission (Rural) has been launchedfrom 2014. So far 10 districts, 103 taluka and 14,000 GramPanchayats have been declared as Open Defacation Free. Itis proposed to make entire Maharashtra ODF by March 2018.An amount of Rs.545.66 crore has been earmarked fromCentre, State and District level funds for this importantscheme.

94. A target of 1,88,000 has been set for the year 2017-18under Prime Minister AwazYojana (Rural). Out of the housesto be completed 50% are meant for SC and ST categories, 15%are given to minority category beneficiaries and balance toother categories. The amounts are directly credited tobeneficiary’s bank account on completion of each stage of theirhouse. Rs.314 crore is being provided as 40% State share forthis programme.

Further amounts are provided under similar scheme of theState Government that is Ramayi Yojana for SC beneficiariesand Shabari for ST beneficiaries. An amount of Rs.314 croreis being allotted for this purpose.

95. There are 125 blocks under ManavVikasKaryakram.To generate focussed employment it has been decided toprovide 100 crore , for employment generation schemes inselected 25 blocks .

96. Rs.80 crore is being provided for construction ofgodowns by the Food and Civil Supplies department. Thenumber of Government godowns will increase to 1200 andincrease the overall capacity to store grains.


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97. A computerisation project is being taken up forproviding EPOs machines in the ration shops of the Food andCivil Supplies department. This will facilitate cashlesstransactions in the shops.

98. Rs.174 crore is being provided for the basicinfrastructure development of tourist locations in the State.

99. This is the Silver Jubilee Year of the formation of thecapital of Sindhudurg District. To coincide with thisanniversary Government is providing Rs.25 crore as specialgrant for development of the district. Further, an amount ofRs.100 crore is being provided for the Tillari Drinking WaterScheme to promote tourism and related activities.

100. Government has decided to develop well knowntourist and pilgrimage centres like Mahurgad (Nanded),Jyotibhacha Dongar (Kolhapur), Lonar Sarovar (Buldana),Sindhudurg and Raigad Forts. Required financial support willbe provided as necessary.

101. My Government is taking efforts to keep thememories, works and values of great leaders alive for futuregeneration. The contraction of memorials is part of this effort.A provision of Rs 200 crore has been proposed for the grandmemorial of Chatrapati Shivaji Maharaj in the Arabian Sea,the grand memorial of Bharat Ratna Dr. Babasaheb Ambedkarat the site of Indu Mill, Dadar and the memorial for RespectedShri. Balasaheb Thakaray at the Mayor’s Bungalow inMumbai. Further funds as required are proposed to be madeavailable for this purpose.

102. The 150th birth anniversary of father of nationMahatma Gandhi will be celebrated in 2019. The SevagramRegional Development Project is under active implementationand so far Rs. 25 crore has been released for the project of Rs.266.50 crore. It is proposed to provide Rs. 93.80 crore in2017-18 for speedy completion work by 2019.


20

103. Financial support will be made available for thedevelopment of memorial and related structures at birthplaceof Punyaslok Ahilyadevi Holkar at Chondi Village, JamkhedTaluka , District Ahmednagar.

104. The Pandharpur piligrimage during Aashadi Ekadasiperiod is most famous and is part of Maharashtra’s culturalheritage. To promote cleanliness and sanitation and forconvenience of pilgrims, it is proposed to provide Rs.3 croreevery year for construction of temporary toilets in thepilgrimage route.

105. Government proposes to examine proposal to state aMaharashtra School of Drama in Chitranagari premises atGoregoan on the lines of National School of Drama.

106. An amount of Rs. 17.32 crore is being provided in2017-18 for protection, promotion and development of Marathilanguage.

It is the expectation of people that Government must beresponsive to their needs. Use of IT is a great tool to increaseresponsiveness of Government and to meet day to day needsof people who interact with Government. A number ofmeasures are declared to promote e-administration.

107. Rs.200 crore is being provided for InformationTechnology Department as against Rs.8 crore in previousyear. This will help them to take up important projects likeup gradation of State Data Centre , DBT portal, installationof various portals, cyber security, provision of technical manpower and many other related initiatives.

108. It is proposed to bring in optical fibre ringarchitecture to cover 28,000 villages. Nagpur District hasalready been declared as the first digital district.

109. Maharashtra is the first state to notify theMaharashtra Aadhar enabled Services Act, 2016. It is decidedto directly transfer various benefits to the citizens and target


21

groups through DBT route to the beneficiaries. Governmentof India has been able to save Rs.36.500 crore byimplementing DBT initiatives. It has been decided to givedirect benefit to beneficiaries instead of kind for 62 categoryof items.

110. CCTV has been activated in Mumbai. Administrativeapproval has been given to extend it to Nasik and KalyanDombivali . It is proposed to take it up in other cities in future.

111. It is proposed to install forensic labs in five districtsof Maharashtra namely Thane, Ratnagiri, Solapur, Dhule andChandrapur so as to increase the rate of conviction.

112. It is decided to implement ‘Dial 112’ in PoliceDepartment. It will cover Police, Ambulance and Fire Services.

113. It is proposed to computerise finger print bureau.E challan project has also been taken up by the Government.,An amount of Rs.141 crore is being provided in 2017-18 foroverall technical upgradation of the Police department

114. Rs.325 crore is being provided for Police Housing.

115. An amount of Rs.12 crore is being allotted for thenewly started Maharashtra State Right to timely Delivery ofServices Commission and associated offices.

116. The State has the highest number of judges and courtcomplexes in the country. To strengthen the judicial systeman additional amount of Rs. 1014 crore will be provided forstarting Family courts, additional courts and Fast track courts.This year an amount of Rs.679.53 crore is being madeavailable for court building construction and other activitieswhich will strengthen the judicial administration.

117. It has been decided to digitalise revenue and landrecords . It has also been decided to remeasure the lands fromthis year and to complete it in three years. Six districts arebeing taken up in the first year. An amount of Rs.47 crore isprovided for these important administrative initiatives.


22

118. Revenue is the key department of Government. Anamount of Rs.104 crore is being provided for construction ofDivisional Commissioner, Collector and Tehsil offices acrossthe State.

119. Substantial amount of Government is blocked inconstruction of Government buildings. As an alternate it isproposed to examine taking private premises on rent for longperiods of lease. A High Level Committee will be constitutedto examine the feasibility of this proposal.

120. A sum of Rs.33.66 crore is being provided to the officeof Transport Commissioner to computer their records andimprove their working.

121. Rs.34.86 crore is being provided to provide requiredequipments for the office of Transport Commissioner, whichwould go to minimise road accidents.

122. The Central Government has implemented the 7th

Pay Commission. To study the 7th Pay Commission report andgive necessary recommendations the State Government hasconstituted the Rajya Vetan Sudharna Samiti, 2017 inJanuary 2017. Resources for implementing the 7th PayCommission will be provided at the required time.

123. Merger of Plan and Non Plan

The Administrative Reforms Commission, the high levelexpert committee under Dr.Rangarajan and also the 12th

Finance Commission had recommended the merger of planand non-plan expenditure in the budget. Further, thePlanning Commission has been converted to NitiAyog andthe present twelfth five year plan is ending on 31st March 2017.Government of India has merged plan and non in their budgetfor 2017-18. Accordingly, in Maharashtra also, we have takenthe major decision to merge plan and non-plan from 2017-18.The focus will now be capital expenditure. This change willbring in more flexibility to each department to use their entire


23

departmental allocation effectively instead of only the ‘plan’component which is only 25% of the total size of the budget.Departments will also be able to earmark adequately formaintenance of assets which have been created in the lastsixty years.

While making this change I wish to assure the House thatthere will be no reduction in the total allocation under theSpecial Component Schemes for Scheduled Castes and underTribal Component Schemes for the Scheduled tribes. Theamounts made available for SC and ST in both plan andnon-plan together in 2015-16 will be kept as the minimumassured commitment for them.

The powers of re-appropriation of district annual fundsunder special component and Tribal component plans whichhas so far being taken place at state level shifted to the districtlevel.

124. Macro-Economic Review and State Income

The Nominal Net State Domestic Product (NSDP) at currentprices for the year 2015-16 is estimated at Rs. 17 lakhs 48thousand and 771 crore. The per capita State Income for 2015-16 is estimated at Rs. 1 lakh 47 thousand 399 as compared toestimate per capita National Income of Rs. 94,178.

125. State Provision for Schemes 2017-18

The total allocation for schemes in Rs. 77,184 crore. Theallocation for District Schemes is Rs. 7,562 crore and for SpecialComponent Schemes is Rs. 7,231 crore and for TribalComponent Schemes is Rs. 6,754 crore. While after merger ofplan and non-plan, the concept of Plan outlay is no more inexistence, still for comparison I would like to state that thefunds earmarked for same category of schemes is Rs. 62,844crore as against Rs. 56,999 crore an increase of Rs. 5,845 croreor 10.25%.


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126. Financial position of the State

While presenting the last budget 2016-17 in March, 2016it was anticipated that there will be a revenue income ofRs. 2,20,810 crore. However, as estimated from revenuepattern it is likely to reach 2,20,011 crore.

In budget 2017-18 the revenue receipt is estimatedRs. 2,43,737 crore while revenue expenditure is estimated at2,48,248 crore. Consequently, there will be a revenue deficitof Rs. 4,511 crore. I will try to minimise this deficit by reducingavoidable expenditure and by effective revenues recoveries.

I assure the people of the state through this august housethat we will do our best to achieve the objectives that we haveset for the development of the state.

Now I turn to Part II of the Budget.


1

Speaker Sir,

I now present Part II of the Budget before the House.

1. Tax revenue of the State, as per revised estimates, forthe year 2016-17 is expected to be rupees one lakh thirtyseven thousand two hundred thirty crore. I am confidentthat we will be successful in achieving the target of taxrevenue. This budget does not propose increase in taxesexcept Value Added Tax on country liquor, foreign liquorand tax on weekly lottery.

2. Goods and Services Tax system, which will have animportant and long lasting impact on the indirect tax systemis expected to be implemented from 1st July 2017. GST willcreate unified market in the country. Commodities producedin the country will become globally competitive and willboost the economic progress of the nation. I am confidentthat increased trade, enhanced tax base and proper taxcompliance in GST will increase the tax revenue of Centreas well as State.

3. The House has discussed the provisions of GST whileratifying the One Hundred and Twenty Second ConstitutionAmendment Bill, in its Special Session. All the Hon’blemembers expressed the necessity of the GST andunanimously approved the ratification of the ConstitutionalAmendment Bill. Accordingly, the Constitutional OneHundred and First Amendment Act, came into force from16th September 2016.

Goodsand

ServicesTax

Implemen-tation of

Goods andServices

Tax


2

4. The Goods and Services Tax Council has beenconstituted to give recommendations to the Union and theStates on the matters relating to the implementation of GST.Twelve meetings of the Council have been held under theChairmanship of Hon’ble Union Finance Minister in whichimportant decisions pertaining to laws and administrativeaspects have been taken by consensus.

Speaker Sir, I would like to brief the House aboutimportant decisions taken by the GST Council :-

• GST will be implemented from 1st July 2017.

• Every tax payer will interact with one taxadministration only i.e. either Central’s or State’s.

• 90 per cent. of tax payers having turnover less thanrupees 1.50 Cr. will beadministered by the StateGovernment and rest 10 per cent. tax payers by theCentral Government.

• Tax payers having turnover in excess of rupees1.50 Cr. will be divided equally between State and Centrefor administration.

• Compensation Bill draft providing compensation tothe States after implementation of GST, has been approved.

• For the purpose of computation of compensation,annual growth rate of fourteen percent on the revenue forthe year 2015-16 shall be considered.

• Compensation amount shall also include Octroi inMumbai and the Local Body Tax.

• Generally,burden of Goods and Services Tax, will bethe same as the burden of prevailing taxes.

Creationof GST

Council& its

decisions


3

• GST tax rates shall be zero, five, twelve, eighteenand twenty eight per cent.

• Transactions within twelve nautical miles from thecoastline will be deemed to be intra-state supplies.

5. GST is expected to be implemented from 1st July, 2017.In view of the new tax system, early disposal of appealspending under Maharashtra Value Added Tax Act, isnecessary so as to make available this revenue. Taking intoaccount the pendency of appeals before the Tribunal, it isnecessary to increase the benches of the Tribunal. Therefore,I propose to establish three more benches of the MaharashtraSales Tax Tribunal.

6. For sustainable and balanced development of the State,raising of additional resources is a must and, therefore, whileimplementing GST, non-tax revenue receipt also need to beincreased. It is noticed that the fees for services provided,Court Fees and fine under various Acts have been fixedlong back. These are being reviewed taking into account thecurrent situation. I am sure that additional non-tax revenuewould be generated through this process. A sincere attemptis also being made to maintain fiscal discipline alongwithrevenue generation.

7. Speaker Sir, I am proposing some changes in the TaxLaws with an objective to make the provisions in the laweasier for compliance and simpler for tax recovery by thetax administration.

Maharashtra Value Added Tax Act :-

• The number of appeals filed by dealers under ValueAdded Tax Act is significant. For disposal of appeals andto unlock the revenue,-

Formationof

additionalbenches of

MaharashtraSales TaxTribunal

Raising ofadditionalresources

Amend-ments to

the TaxLaws


4

a. I propose to give powers to the appellate authorityto remand back, the ex-parte assessment orders forassessment, to the assessing authority. Therefore, thepowers of the assessing authority to cancel ex-parteassessment orders are proposed to be repealed.

b. Appellant is required to make part payment ofdues to obtain stay for recovery of dues on grounds otherthan declarations. Lot of time of the appellate authoritiesget consumed in fixing the part payment amount andtherefore, recovery is delayed. Therefore, on the lines ofproposed GST Law, I propose mandatory and fixed partpayment of 10 per cent of the disputed tax with themaximum limit of Rs. 15 crores, which the appellantcan adjust against his dues subsequently. Otherconsequential and technical changes are also proposed.

• The time limit to file appeals under Value AddedTax to the High Court against the decision of the Tribunalis one hundred and twenty days. This time limit isproposed to be increased to one hundred and eighty days,so that the Department as well as the dealers get sufficienttime to examine the legal aspects of the case.

• Recovery of the dues as per orders is one of the mostimportant functions of a tax administration. I propose tomake the process of recovery more effective, in view of thetactics employed by dealers to avoid the payment of dues.

a. Under the Maharashtra Value Added Tax Act,dues have first charge on the property of the dealer,subject to any Central Law. But there is ambiguity asto when this charge can be said to have been created.To remove this ambiguity, I propose that the charge


5

shall be deemed to have been created on the propertyof the dealer on the date, mentioned in the demandnotice.

b. If a Company does not pay the dues within theprescribed period, such dues can be recovered byauctioning the assets of that company, as per the ValueAdded Tax Act. It is noticed in many cases that severalcompanies do not have assets. The dues cannot berecovered from the personal assets of the directorsresponsible for the affairs of the company. I, therefore,propose that for the dues of private company, thecompany and the directors shall be jointly and severallyliable.

• Interest on refund is required to be given to a dealer,if refund is not given to him within ninety days from thedate of order. For “Ease of Doing Business”, I propose toreduce this time limit to sixty days for early grant ofrefund.

• A dealer is liable to pay interest for late payment oftax under Tax Laws. E-payment is mandatory for a dealer.However, due to certain technical problems in theautomation system of the Sales Tax Department, dealersare not able to pay tax in time. It is proposed to empowerthe State Government to waive the interest payable insuch situations.

• The pending work under the existing laws needs tobe disposedoff speedily, in view of the introduction of GST,so that the tax administration is well equipped toimplement GST. To reduce the pendency of old cases,I propose to empower the State Government by a provisionto make a suitable plan for disposal on the basis of certainparameters.


6

At the same time, to encourage the unregistered dealersunder the Value Added Tax Act to obtain registration sothat they become eligible for Goods and Services Taxregistration, a provision shall be made to exempt interestto some extent and penalty of such dealers for theunregistered period after payment of due tax.

Profession Tax Act

• Tax liability of a person, who applies late forregistration or enrolment, can be computed for the periodsof maximum eight years prior to obtaining registration/enrolment. Due to this eight year’s tax liability, manypersons remain unregistered. I propose to reduce this periodto four years to encourage more unregistered persons tocome forward toregister or enroll.

• The responsibility to deduct and pay tax of employeesis on the employer or organization. Many organizationsappoint agents. However, it is noticed that since theresponsibility of Profession Tax of such agents is not onthe organization, tax compliance is affected. I, therefore,propose to assign the responsibility of Profession Tax onthe organization which appoints the agent.

• Interest is payable at one and a quarter per cent.per month, if a person does not pay Profession Tax intime. To ensure prompt payment of tax, I propose to alignthe interest rates under Profession Tax with the interestrates under Value Added Tax.

• Dealers registered under Value Added Tax are liableto pay Profession Tax. To widen the scope of ProfessionTax, I propose that the service providers registered forService Tax shall also be liable to enrol.


7

• Late fee of rupees one thousand is payable if a taxpayer under Profession Tax files return late. Assessmentof a tax payer is not possible in the absence of returns. Toencourage filing of returns, it is proposed to exempt latefee of a tax payer who files pending returns up-to30th September 2017.

Entry Tax Act

To ensure due revenue to the State, Entry Tax is leviedon some commodities. I propose that the time limits forassessment of an importer under the Entry Tax Act shallbe aligned retrospectively with the provisions under ValueAdded Tax Act, so that sufficient time becomes availablefor assessment.

8. Speaker Sir, I am now submitting my tax proposalsbefore the House :

Sugarcane Purchase Tax

In the Budget of year 2016-17, it had been proposed toexempt Sugarcane Purchase Tax for year 2015-16 of thesugar factories, which export sugar to the extent of theMill-wise Indicative Export Quota (MIEQ), as per theCentral Government’s policy. In view of the withdrawal ofthe export quota policy for sugar factories, by the CentralGovernment this condition to avail exemption is notsuitable. Hence, for year 2015-16, there will not becondition of export. I, therefore, propose to exempt tax foryear 2015-16 and year 2016-17 to the sugar factories topay fair and remunerative price to farmers. If we takeinto account both the years, then rupees seven hundredcrore could become available with sugar factories to payfair and remunerative price to sugarcane farmers.


8

Value Added Tax

• Exemption/concession to essential commodities :-

The State has exempted tax on some of the essentialcommodities such as rice, wheat, pulses and their flour,turmeric, chillies, tamarind, jaggery, coconut, corianderseeds, fenugreek, parsley (suva), papad, wet dates, solapurichaddars and towels upto 31st March, 2017. I propose tocontinue exemption on these items upto the date prior tointroduction of GST. In addition to these items, I alsopropose to exempt amsul. The tax concession on currantsand raisins will also continue up-to the date prior tointroduction of GST. The concessional rate of six per centtax on tea will also continue upto the date prior tointroduction of GST.

• Tax Exemption to geo membrane for farmponds : Central Government has undertaken a projectaimed at doubling the income of every farmer till the year2022. Water planning shall have highest importance forthis project. “ ¨ÉÉMÉä±É iªÉÉ±ÉÉ ¶ÉäiÉ iÉ³äý ” is a promise of ourgovernment to farmers. In view thereof, I propose toexempt Value Added Tax of six per cent on geo membrane,necessary for a farm pond.

• Tax Exemption to soil testing kit : Thisgovernment has a positive attitude towards farmers.Increasing fertility of soil is necessary to increase theincome from agriculture and to achieve this, the conceptof “soil health card” has been implemented. I, therefore,propose to exempt soil testing kit from Value Added Taxof 13.5 per cent.


9

• Tax Exemption to milk testing kit : Severalmilk adulteration cases have come to light. Consumptionof adulterated milk is harmful to health and could be fatalto children. To encourage use of milk testing kit to checkmilk adulteration, I am proposing to reduce Value AddedTax of 13.5 per cent. to zero per cent. on milk testing kit.

• Tax Concession to aviation turbine fuel : Tensmall airports at Amravati, Gondia, Nashik, Jalgaon,Nanded, Solapur, Kolhapur, Ratnagiri, Shirdi andSindhudurg in the State have been included in theRegional Connectivity Scheme to encourage the aviationindustry and consequently tourism. I propose to reducethe Value Added Tax on aviation turbine fuel sold toaircrafts, operating under this scheme from five per centto one per cent for a period of next ten years.

• Tax Exemption on card swipe machines : Thisgovernment is committed to the concept of “Digital India”.It is necessary to encourage cashless transactions. I proposeto exempt Value Added Tax of 13.5 per cent. on card swipemachines, necessary for cashless transactions.

• Tax Exemption on gas and electricincinerators : I need not comment on the necessity oftrees. All of you are aware of it. It is necessary to minimizethe use of wood to avoid degeneration of environment.Keeping this in mind, I propose to exempt Value AddedTax of 13.5 per cent. on the gas and electric incinerators.

• Value Added Tax on liquor : Manufacturers andimporters are eligible to pay Value Added Tax at thenotified rate of 23.08 per cent. on the maximum retailprice on sale of foreign liquor, Indian made foreign liquorand country liquor. I propose to increase the notified rateof Value Added Tax on foreign liquor, Indian made foreign


10

liquor and country liquor. Now, I propose that Value AddedTax shall be levied at the notified rate of 25.93 per cent.of the maximum retail price of liquor.

Lottery tax : Lottery tax is levied on online andpaper lotteries in the State on the basis of draw. I proposeto increase tax on weekly lotteries from rupees seventythousand to rupees one lakh.

9. Ambiguity in the levy of Value Added Tax can havean adverse impact on the industry. In case, an industry hasnot paid the tax for specific reasons and those reasons areprima-facie proper, then it becomes necessary to remove thisambiguity in tax liability.

There is no clarity in the industry about the tax rate onprocessed sweet-corn for the periods up-to 31st March 2016and tax liability of the textile industry. It is necessary toclear doubts. I submit following tax proposals relating toprocessed sweet-corn and textile industry :-

Processed Sweet-Corn industry

Processed sweet-corn has a nexus with agro-processingand this industry needs to be encouraged. There beingambiguity regarding tax rate on processed sweet-corn forthe periods up-to 31st March 2016, levy of tax wouldadversely affect this industry. I propose to exempt processedsweet-corn for the periods from 1st April 2005 to 31st March2016.

Textile processing industry

Tax liability arises on the value of goods transferred duringthe processing of textiles in the textile industry. Since textilesare not taxable, the textile processing industry had beenexempted by administrative relief up-to 31st March 2005.

Certaintyin levy of

taxes


11

Due to the amendments by the Central Government to theAdditional Duties of Excise Act, textile processing industrybecame liable to tax from 8th April 2011. Textile processingindustry was exempted in the budget for the year 2012-13.But, the amendment allowing exemption became effectivefrom 1st May 2012. Therefore, for the period from 8th April2011 to 30th April 2012, Value Added Tax became payableby the textile processing industry. Barring this period, textileprocessing has always been exempted for entire period. Ithas been observed that this industry has not collected taxduring the said period from the customers under impressionthat the exemption is not available only for technical reasons.It becomes, therefore, appropriate to exempt Value AddedTax for the said period. I propose to exempt tax for theperiod from 8th April 2011 to 30th April 2012 of those textileprocessor, who have not collected tax from customers or havenot paid tax.

Yarn Warping and Sizing Industry

The primary process in textile industry is warping andsizing of yarn. Value Added Tax has been exempted from1st April 2016 on this labour intensive industry havingminimal value addition. Normally, yarn is strengthened byusing starch, adhesive and mutton tallow and tax liabilityarises on transfer of property in these goods during processingof yarn given by the employer. Since Value Added Tax isnot levied on textile and textile processing, warping andsizing of yarn in composite mill does not attract tax. But ifwarping and sizing process is done in small scale units thenValue Added Tax is attracted. Tax liability of this industryis negligible due to minimal value addition. Taking intoaccount that levy of tax after computation of tax liabilitymay adversely affect this industry, I propose to exempt yarn


12

warping and sizing industry for the period from 1st April2005 till 31st March 2016 of the dealers who have notcollected tax from customers or have not paid the tax.

Speaker Sir, these tax proposals are estimated to result inadditional revenue gain of rupees 396 crore. This gain hasbeen incorporated in the Budget Estimates of 2017-18. Ihope that honourable members of this August House willsupport the proposals.

Jai Hind ! Jai Maharashtra !!


the jal and bhoomipujan for the memorial of chhatrapati ...spent under this scheme and about rs. 246...

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