Rajasthan Budget 2016-17: Expectations and Predictions

Rajasthan Budget 2016-17 set to roll in on the 8th of March – birthday of Chief Minister Vasundhara Raje:

Being India’s biggest state, the budget planning for Rajasthan demands intensive exercise and comprehensive feedback. The vast land is not just home to various cultures, but is also home to diverse terrains, climates and resources. It is it even more crucial for the budget planners of Rajasthan to ensure that the needs of every region are understood and provided for. We recently told you how Chief Minister Vasundhara Raje has started an innovative budget exercise of visiting all divisional headquarters of the State for Rajasthan Budget 2016 feedback. With determination and focus, she is putting the best foot forward for a ‘New Rajasthan’. This Budget 2016 is important from both political and administrative point of views given that this is a third year budget that CM Raje shall be presenting. To her credit, contemporary methods have been used under Raje’s governance to enhance the capability of the state to compete with the national dynamics, day after day. LiveMint had recently stated, “Chief Minister Vasundhara Raje seems to be crafting a new model of state leadership that is more relevant to our times.” India, complex as it is, needs additional policy experimentation. Rajasthan under CM Raje’s governance is truly showing way in this regard.

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Several assumptions are flooding in since the Rajasthan Budget is set to roll in on the 8th of March, which also marks the birthday of Chief Minister Vasundhara Raje. We bring to you our take on the #RajasthanBudget 2016 based on four parameters – last year’s State Budget, current year’s Union Budget, press releases and general public opinions.

State Budget 2015-2016 was announced on 9th of March last year and had some highlights that gained a lot of attention. CM Vasundhara Raje proposed a plan outlay of Rs 71,405.78 crore in the budget estimate for 2015-16 that included Gross Budgetary Support of Rs 57,322.77 crore, Internal and Extra-Budgetary Resources of Rs 13,147.59 crore and Resources of Participating Agencies for Public Private Partnership Projects of Rs 935.42 crore and tax relief amounting to Rs 200 crore. It greatly encapsulated the booming e-culture via new IT and e-governance policies, public wi-fi, online vehicle applications, centralized call centres, 15000 e-mitra centres, WiFi facilities, and E-dharti programme, gave impetus to the infrastructure sector through new 37 girls hostels, bridges, Grameen Gaurav Path, LED lights, Rajasthan Road Safety Authority, flourished industrial growth by opening new plants, boosted agro sector through new Krishi Sewa Kendras and 40000 new electricity connections, surplus in revenues and tax redemption for economic sector and launched more schemes like Bhamashah, HRIDAY, Van Dhan among many others. We’re assuming that the new budget for Rajasthan for financial year 2016-17 shall have many more offerings given that Rajasthan has also set out on gaining its lost economic strength after a very successful Resurgent Rajasthan Partnership Summit.

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Union Finance Minister Arun Jaitely’s budget for the year 2016-17 was all-inclusive in nature. Rather than state wise appropriation, it was based on 9 different pillars of development with very less touch of personal dissemination. The common opinion is that the Finance Minister mainly focused on subjects of people’s importance and evenly touched the public needs. Times of India states – “Union Budget presented on Monday included several schemes that are already running in Rajasthan or have been announced by the state government recently” and we agree. The Union Budget included many cues from the Rajasthan Government’s various reforms and policy initiatives. Mukhyamantri Jal Swavlamban Yojna, launched by CM Raje this year, is a ground zero water management program involving crowd funding, very similar to the proposed sustainable management of groundwater resources with multilateral funding by Arun Jaitley. Raje’s Bhamashah scheme was probably the first direct benefits scheme in the country, launched in her last term, much before the Aadhar or Jan-Dhan was launched. Jaitley has announced to bring in necessary amendments in the Motor Vehicles Act and open up the road transport sector in the passenger segment. Rajasthan has already allowed private players by de-nationalizing 476 routes on which services started from December 13, 2015. The Bhamashah Swasthya Bima Yojna was launched much before Jaitley offered a new health protection scheme that will provide a health cover of up to Rs 1 lakh per family, and so was a district-dialysis program which is similar to the recently announced `National Dialysis Services Programme’. The Rajasthan model of development seems to be showing way to a lot of other State Governments and now even the Union Government.

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We can assume that the Rajasthan State Budget 2016-17 will be a people-friendly budget concentrated around enhancing effectiveness of taxes and increment in various introduced schemes. Taxation is one part that has strong influence on other segments and the Raje Government has showed signs of sensitivity towards making taxation processes simpler. Involvement of industries along with the labor organizations will ease the inflow of investments and consequently be of help in tax simplification. Reports suggest that the Gram Sadak Yojna shall be funded with additional Rs 9000 crores out of which 40% will have to be added by the state itself. Under Affordable Housing Scheme, service tax redemption for flats between 45-60 sq. meters in area may be given. To make Rajasthan the first organic farming state of the country, CM Raje may give additional benefits to farmers who cultivate organic crops.

Rajasthan State’s upcoming budget 2016 shall certainly be unique & all-inclusive given Chief Minister Vasundhara Raje’s efforts of taking feedback at ground level. Planning of any budget, be it personal, household, state or country, holds great significance. Each and every aspect of livelihood is in many ways connected to the budgetary decisions. We certainly await Rajasthan Budget 2016 holding our breaths.

 

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