Publish Date: | Thu, 10 Mar 2022 04:09 PM (IST)
MP Budget Analysis 2022: Gwalior, Naiduniya Representative. The Gross Domestic Product (GDP) figure of Madhya Pradesh has crossed Rs 11.51 lakh crore. It is a matter of concern that the ever increasing public debt has crossed 3.5 lakh crores. About 22 thousand crores have to be spent in meeting its interest. At present, governments across the world are emphasizing on liquidity, economic growth and development, ignoring the budget deficit. As a result, the inflation rate is increasing continuously and the rise in oil prices will act as fuel in the fire.
This is to say of Ashish Parakh, a chartered accountant of the city. He said that compared to last year, our capital expenditure has been increased from about Rs 40400 crore to 48800 crore, which is 20 percent more. Surely this planning must have been done only after looking at the benefits to be received in the future. Tax revenue has also been rising steadily and has increased from Rs 1.23 lakh crore to Rs 1.37 lakh crore, but it lags behind government expenditure. There has also been a jump in revenue expenditure, rising from Rs 1.77 lakh crore to Rs 1.99 lakh crore. The government is continuously using the income for public welfare and there may not be any hesitation in taking loans for this. It will have to be met with a loan of about 52000 crores. The target of four percent fiscal deficit was given to the states by the Central Government and the Reserve Bank of India, but in MP it remains above four percent. The interest payment continues to increase. In the year 2020-21, it was 16 thousand crores, which is reaching beyond 22 thousand crores. The perspective is that the government should strictly rein in unnecessary expenditure, otherwise we will be caught in the vicious cycle of debt. Our public debt will keep on increasing year after year. To increase GDP, VAT rates on petrol and diesel are still very high compared to other states, the rationale for this is beyond comprehension. People of border district go to other states to get petrol and diesel. This results in loss of VAT of revenue of the state. The revenue deficit is steadily narrowing, but to address the problem of unemployment, we will have to make more efforts in the manufacturing sector, which still accounts for less than 10 per cent of GDP. Even after 18% growth in the health sector, the share in GDP remains very low. An increase of about three thousand crores is insufficient for the transformation of health services, while an increase of two thousand crores has been made in the education sector. A 36 percent increase in the budget for urban and rural development is a positive and welcome step. It is also the task of the government to provide a fear-free environment to the citizens for doing business. Along with this, tourism can also reach the old condition again after Corona. Overall, even after facing the outbreak of Corona, we are ready to move forward. Rising inflation and fiscal deficit are a matter of concern. If the central government increases the price of oil, then the state government should reduce VAT and other taxes. Income from petrol and diesel should be maintained at the same level, otherwise inflation will again become unbridled.
Posted By: Hemant Kumar Upadhyay