The budget did not impose any fresh tax, however there was reduction in rates of entry and VAT rates on items like fish, textiles, tea, cinema hall tickets, medical equipment, pressure cookers, brass utensils, cups and glasses, plywood, turmeric, local fireworks, besides subsidies for small businesses.

The budget has made several provisions for women, students and BPL people. The budget has proposed giving 50 percent reservation to the fairer sex in various tiers of Panchayat and urban local bodies. It has also proposed to reserve 20 percent of government supplies for women. The budget stated that one computer with accessories will be given to the Students’ Union of each degree college in the state. The Berry White Medical School in Dibrugarh will be renovated and preserved as a Heritage Site. An amount of Rs 1 crore has been provided for this.

The budget promised a one time incentive of Rs one lakh to victims of insurgency if they opt for professional courses. For rehabilitation of militants in Karbi Anglong and North Cachar Hills, an amount of Rs 2 lakh per surrendered militant will be provided. The government has also proposed to earmark 2 percent of government jobs for the next of kin of victims of terrorism and secret killing. For the two hill districts of Karbi Anglong and North Cachar (NC) Hills, Rs 50 crore each has been provided.

The budget has proposed the supply of 10kgs of rice per month to 13 lakh BPL families at Rs 6 per kg and an amount of Rs 150 crore has been provided for this purpose. It has also proposed to earmark 30 percent of government jobs for unemployed youth from rural areas. Interest subsidy of 3 percent to the weavers and seri-culturists on term loan for capital investment up to Rs 25,000 and working capital loan up to Rs 10,000 is proposed. The budget stated that 20 power tillers will be provided to each assembly constituency at 75 percent subsidy.

The creation of several new institutions has been proposed which include the setting up of a regional institute of cooperation and management training at Sibsagar, medical college at Diphu and Nagaon, a Sanskrit University at Nalbari, technical university in PPP mode in Nagoan district, two new engineering colleges, and one polytechnic at three different places.

The budget has proposed to remove the existing entry tax of one percent on sugar and 4 percent on fish and eggs. Entry tax on textiles has been lowered from the existing 4 percent to 2 percent. VAT on fresh turmeric has been removed from the existing rate of 5 percent. Four percent entry tax of tea has been removed. Reduction of the rate of entertainment tax on payment of admission to cinema halls up to Rs 20 from existing 30 percent to 15 percent and on payment of admission of more than Rs 20 from existing 50 percent to 20 percent has also been proposed.

VAT on X-ray films and other diagnostic films have been lowered to 5 percent. Similarly VAT on pressure cookers, steel and brass utensils, lease transactions and cooked food items, has been lowered from 13.5 percent to 5 percent. Rate of tax on plates, forks and spoons made of paper and plastic, block board and decorative plywood has been lowered from 13.5 percent to 5 percent.

The budget also proposed to continue deduction of Rs 5 for every kg of tea exported through Inland container depot (ICD) Amingaon from agricultural income for computation of agricultural income tax for one more year with effect from April 1, 2010.

The budget has also proposed to increase the limit of annual turnover from the existing Rs 10 lakh to Rs 20 lakh for submission of monthly return under the Assam Value added tax, 2003. As a result, dealers with annual turnover up to Rs 20 lakh will have to submit quarterly returns only. While the budget proposed to increase the rate of minimum alternative tax on agricultural income from existing 10 percent to 18 percent.

Opposition parties including Asom Gana Parishad (AGP), BJP and AUDF termed the budget as a poll manifesto. The opposition said that the budget has nothing new except for a bagful of promises. The Government has not enlisted any measure on how to fight the price rise of the essential commodities.

“The disturbing tendency of land grabbing particularly in Guwahati city has drawn my attention,” CM Gogoi observed. “I propose to introduce legislation by August 2010 for the prevention of acquirement of title and possession of land by unlawful, forceful and fraudulent means.”

The budget was received with a mixed reaction from industry and business circles. Federation of Industry & Commerce of North Eastern Region (FINER) observed, “We are happy that Entry Tax on several essential items has been removed. We are disappointed that Entry Tax on industrial raw materials and plant & machinery have not been removed which has been our long-standing demand.”

Reduction in VAT on block board, decorative plywood, catering services and few more items etc., will give relief to the consumers. Increase in VAT Composite Scheme from Rs.10 lakhs to Rs.20 lakhs will be a big relief to the small traders and businessmen. Similarly, the exemption limit for VAT should have been enhanced for the benefit of small entrepreneurs.

The announcement of CM’s Special Employment Generation Scheme with a corpus of Rs.200 crore is a positive step towards reducing unemployment in the state, the body stated.

However, FINER is disappointed that no major investment or schemes to attract major investment have been announced which was expected after the meeting of the Chief Minister’s Investment Advisory Committee which was attended by many top level industrialist of the country.

Sunaina