PUDUCHERRY: The 2017-18 budget presented on an outlay of Rs 6,945 crore by Puducherry Chief Minister V Narayanasamy on Thursday offers some relief for the tax-burdened people of the union territory: there are no fresh taxes.
Announcing a tax-free budget, Narayanasamy, who holds the finance portfolio, put the proposed expenditure under plan head at Rs 2,500 crore and under non-plan head at Rs 4,445 crore.
The contribution from the Union Territory’s own resources is estimated at Rs 4,022 crore, which accounts for 57.9 per cent, while assistance to be sought from the central government amounts to Rs 1,411 crore.
This apart, the grants anticipated for the centrally-sponsored schemes, including the Central Road Fund, is Rs 361 crore. The 16.5 per cent of balance amount that totals to Rs 1,151 crore would be met by borrowing from the open market and other financial institutions.
The fiscal deficit is less than 3 per cent, the CM said. Of the total outlay of Rs 6,945 crore, around 60 per cent has been earmarked for committed expenditure which includes Rs 1,650.4 crore for salaries, Rs 663.27 crore for pension, Rs 1,112.88 crore for debt service, that is interest and loan repayment, and Rs 1,012.19 crore for buying electricity.
From this year onwards, the union territory needs to pay an additional amount of Rs 347 crore towards repayment of loans availed in the year 2007-08, as the ten-year moratorium period has come to an end.
Left with Rs 2,506.26 crore funds after meeting the committed expenditure, the government has planned to utilise it for welfare and developmental schemes with a thrust on rural development, irrigation and flood control and water supply.