Principal Finance Secretary Mr Tuhinkant Pandey said that the increase in Minimum Support Price (MSP) as announced in the Union…
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Principal Finance Secretary Mr Tuhinkant Pandey said that the increase in Minimum Support Price (MSP) as announced in the Union Budget will raise several issues and challenges at the implementation stage. Every economist knows that MSP and Inflation highly co-related and any increase in MSP will eventually result into price hike in agricultural products, he said while inaugurating a post budget analysis organised by FICCI, Odisha Chapter on Wednesday here.
“States have no idea how center plans to implement the MSP proposal. How the Centre will calculate the cost is very important. Because every state has to agree with the cost”, he observed. Mr Pandey also pointed out allocation for major schemes like MGNREGA, PMGSY, PMAY, Tribal sub-plan is stagnant which is not encouraging as far as Odisha is concerned. In terms of revenue the center plans to collect more than 22 lakh crore. Out of which 7.88 lakh crore will given to states. So, the net revenue of Center is just more than 14 lakh crore.
He also highlighted that revenue expenditure to GDP ratio has up from 10.90pc to 11.44pc and Capital expenditure to GDP ratio down to 1.6pc from 1.84pc, which is a problem. He also questioned how the government intends to mobilise funds for the mega health care scheme.
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Chairman of FICCI Odisha State Council, Mr. Subhrakanta Panda said that, “Corporate tax cut proposal will be beneficial for 98-99 pc for small and medium corporate houses and for rest of 7000-8000 corporate houses the tax rate will be around 22-23 pc because of various exemption declared by government.” Principal Commissioner of Income tax, Mr. Subrat Mishra talkedabout impact of various tax proposals.
He said the, Fiscal deficit slippage reflected in the budget is because of GST and Demonetisation. But positive impact of these two steps will be felt within next 2-3 years. He said that, in next 3 years Tax to GDP ratio will increase by 3 pc. One per cent increase means 1.5 lakh crore more revenue realisation, which means government will get more money to spend for social prorgamme.
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