The Uttarakhand Minister for Finance, Parliamentary Affairs and Excise, Prakash Pant shared his views about budget, economy and politics while talking to The Pioneer in an exclusive interview. Here are the excerpts.
Question:You recently met Union Finance Minister Arun Jaitley and had pre budget discussions. What things did you pitch forth for the State?
Answer- Under the 14th Finance Commission the States are receiving lesser budgetary allocations under components like Special Plan Assistance (SPA) and other heads than what they used to receive earlier. Similarly considerable shortfall occurred under 13th finance commission also. We demanded that Uttarakhand should get one-time assistance of Rs 1840 crore for infrastructure development. Similarly the issues of shortfall in the National Rural Drinking Water Project (NRDWP), Jamarani Dam, funds for ropeways and tourism development were raised with Union Minister.
Question- What are your plans for the next budget of the state? Are you planning to impose any new taxes?
Answer- The State Government is not going to impose any new tax or cess in its budget. Our economy is in a good shape and the market buoyancy is under control. 100 per cent centrally funded schemes like Namami Gange and all-weather road project are presently going on in Uttarakhand. We need central assistance for infrastructure development but at the same time we should concentrate on internal resource generation to meet our expenditure needs.
Question- What effect did the new Goods and Services Tax (GST) regime have on tax collection of the state and what challenges do you foresee in economy?
Answer- Our collections through VAT, excise and cess used to be around Rs 2200 crore but now post GST we will get tax of about Rs 6000 crore. Though we will have a shortfall in IGST collections but overall we will have a growth of 17 per cent post GST. After GST the States cannot impose any barriers in trade so innovations should be incorporated. Uttarakhand is a manufacturing state now under new GST regime we should focus more on service industry and for it we are developing infrastructure in the State. To improve air connectivity we are preparing 100 helipads in addition to the five air strips in the state which will also be developed. Rapid urbanisation of peri urban areas is a big challenge for us and recent decision of delimitation of urban local bodies is an attempt to address the problem.
Question- One of the challenges the Government has taken is to double the income of the farmers by the year 2022. What road-map you have in the mind to accomplish it?
Answer- We have devised a plan to take the state ahead in organic farming and selected 670 Nyay Panchayats for it. In the first phase 50 villages would be taken up to promote organic farming. We will have to provide seeds, manure and market support and timely declaration of Minimum Support Price (MSP) and we are working on it. For providing financial support to the farmers we have started a Deen Dayal Upadhyaya Scheme under which loan up to Rs 1lakh is provided on a very low interest rate of 2 per cent. By all these measures the target of doubling the income of farmers can be achieved which at present is about Rs 70000 per annum. We have also cleared the long pending dues of sugarcane farmers.
Question- BJP had declared in its manifesto that it will bring Lokayukt act in Uttarakhand now why the government is dithering on it?
Answer- Our Government tabled the Lokayukt bill in first session of the assembly from where it was sent to select committee which has sent it to the house. Now it is the property of the house. We are committed on our pre election commitment to bring the act.
Question- The issue of overpricing of liquor in the shops across the State is a big concern. What excise department is doing to prevent this malpractice?
Answer- We have brought changes in the excise act and hiked the penalty on overpricing. We are determined to check overpricing and appointed one senior officer each in Garhwal and Kumaon divisions to monitor the pricing of liquor.
Question- The upcoming elections of the urban local bodies is being viewed as the first test of the State Government then there is a much bigger test in next year in form of General Elections. What is your to do list for the party to fare well in these twin tests?
Answer- The local bodies’ election is mainly fought on local issues. The selection of candidates and his/ her image are major factors while in the Lok Sabha elections are contested on national issues. Our party is on action mode and more than 16 lakh workers of the party are geared up for these elections. The state BJP government has fulfilled its promise of corruption free and good Governance which will help the party in the elections.
Question- The opposition Congress has repeatedly charged your Government for financial mismanagement and stated that the government is taking loans to even pay the salaries of Government employees. Is it so?
Answer- The charge is baseless. The state has a limit of Rs 2342 crore under the Fiscal Responsibility and Budget Management (FRBM) Act and our borrowing have not exceeded that.