Union Finance Minister Nirmala Sitharaman on Saturday delivered her eighth budget speech, the highlight of which was the decision to enhance income tax slabs in a manner that allows those earning up to Rs 12 lakh to pay zero income tax provided they opt for the new tax regime. This decision is unsurprising and was expected, given the growing clamour, especially on social media, to bring relief to the salaried class that was suffering from not just taxation slabs that remained nearly stagnant for nearly two decades, but also from stagnant wages and high inflation which was reflected in falling urban consumption.
However, there was little else to cheer, for most other sectors and groupings be it States that were seeking special packages or funding for individual projects, infrastructure layout for sectors like the railways, or even for those who continue to file returns as per the old tax regime like those who wish to claim benefits like that of home loans, etc.
Goa’s case in particular needs mention. The Chief Minister, during his speech at the Finance Minister’s conclave held last December had placed before the Union government a long list of demands including a demand of Rs 1,000 crore from the Union government to develop climate change resilient infrastructure, a one-time special assistance of Rs 500 crore for a project to revive the State’s khazans, double tracking of the Konkan Railways route at the cost of Rs 5,000 crore, as well as superfast trains connecting Goa to major cities, like that of Pune, Bangalore and Hyderabad since currently travelling by bus is the only convenient means, and a further Rs 1,500 crore for replacing Goa’s aging water pipeline system.
None of these demands were fulfilled nor was any mention made of them. To be fair to the government, they weren’t asking for all of the demands to be fulfilled, and none of the States, save for Bihar, which is heading for an election soon, have been given special packages. That said, questions need to be asked of the State government, which despite tall claims of being a “double engine” government has only succeeded in being completely ignored by the Centre.
It is not as if any of the demands made by the State government were of the unreasonable kind. It appears that Goa gets a listening ear by the Centre only when it proposes monstrous projects like mega highways, bridges and others that aren’t really an urgency to Goa’s character. It should be a lesson not just for the government of Goa, but for the people at large that they should not remain reliant on the Union government to fund infrastructure projects in the State, but instead should work towards becoming financially self-reliant in line with vision of swayampurna, so that we are able to fund our own expenses. Instead of spending energy on how best to drain the exchequer, the State government really needs to focus on improving its own income, a task that has been further complicated by the introduction of GST, which means only excise and taxes on fuel remain in the States’ hands.
The State could do with a little less boasting about its relationship with the Centre, and more of a hard-nosed dedication to the task of becoming swayampurna not just in agricultural produce but in not being dependent on the Union for special packages and grants.
