Maharashtra budget provides boost to the textile sector

After dismal performance during the Lok Sabha elections, the Congress-NCP Maharashtra

government, yesterday presented a Rs 4,103.3 crore deficit Budget for 2014-15 with sops for farmers, traders and professionals.

The Budget presented by Deputy Chief Minister Ajit Pawar, who holds the finance portfolio, in the assembly pegs revenue receipts at Rs 1,80,320.5 crores and expenditure at Rs 1,84,423.28 crores. To appease the cotton farmers, the government has reduced tax rate on cotton to 2 percent from 5 percent, which may lead to reduction in rates of cotton clothes. The budget has made a provision of Rs 100.4 crores to boost the textile sector. Retailers will now pay 1 percent of turnover or 1.5 percent of taxable turnover instead of VAT , which may positively reduce the prices of goods and commodities.

Pawar said that the state would be able to achieve the tax collection targets for 2013-14 despite an economic slowdown. He, however, informed the tax relief in essential commodities given up to March 31, 2014, has been extended up to March 31, 2015.