The West Bengal government has announced a series of fiscal incentives to boost real estate activities.

Presenting the state Budget on Friday, Finance Minister Amit Mitra announced reduction in stamp duty from the prevailing five to seven percent, to a rate of two per cent. In order to get the benefit, the registration has to be done within a period of four years from the date of agreement on payment of the balance stamp duty.

A 20 per cent reduction in registration fees, if done within a year from completion of property, has also been announced.

Mitra said the reduction in registration fee and stamp duty will see increased activity in the sector and give a give a boost to allied industries such as cement and steel.

“The fillip to the real estate sector should see increased revenue earnings for the exchequer,” the Minister said.

With panchayat elections due in 2018, the State Budget also focussed on a whole lot of schemes benefiting small businesses; skilled workers, including migrant labourers, and farmers.

Mitra, however, claimed during his Budget presentation that the schemes were carried out to counter the adverse affects of demonetisation on these sectors.

A ₹250-crore corpus is expected to be set up, to provide ₹50,000 each to 50,000 skilled labourers affected by demonetisation to get into alternative trade. Incidentally, the state will soon conduct a survey to identify the affected people and provide them this benefit.

A ₹100-crore “special assistance fund” will be created to “mitigate the sufferings of farmers.”

VAT relief threshold was extended to ₹20 lakh from the existing ₹10 lakh, targeting “small businesses and start-ups.”

Another set of administrative reforms on VAT registration, submission of a separate VAT (audit) report, speeding up VAT reform cases and setting up of new VAT offices were also announced.

Asked about the impacts on the State’s exchequer, Mitra pointed out that the tax reforms will lead to “ease of doing business” and increase earnings of the exchequer.

Incidentally, the State has revised its fiscal deficit figures. The revised fiscal deficit estimate for FY-17 has been increased by 23 per cent to ₹25,336 crore (apprx) against the budget estimate of ₹19,355 crore. Fiscal deficit was pegged at ₹20,891 crore in FY 16.

The FY 17 revised estimates also indicate a revenue deficit of ₹9,469 crore while outstanding debt (including PF, reserve fund and deposits) has been revised to ₹3,33,677 crore.

The revised Budget estimates also reveal a 15 per cent rise in State tax revenues to ₹48,927 crore over the ₹42,492 crore of FY 16.