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| Major Events Vol. 3 Issue No. 27 | May 16-31, 2007 |
NE Budget allocation hiked to Rs 14,365 cr Amidst a demand to ensure that benefits under the North East Industrial Policy reach the grassroots level, Union Finance Minister P Chidambaram reiterated that budgetary allocation for the north-eastern region has been increased to Rs 14,365 crore. Replying on the Finance Bill, Chidambaram referring to points raised by Khagen Das, clarified that the Budget allocation has indeed increased from Rs 12,041 crore in 2006-07 to Rs 14,365 crore in 2007-08. Any amount out of the 10 percent of the Budget allocation to a Ministry, which remains unspent, will go into a non-lapsable account and will be made available to the Ministry of DoNER. That is what has been done for 2007-08 too, he said.He also added that some official amendments are also being introduced to give effect to certain Budget announcements such as the new North East Industrial Policy. On pan masala, against the mean CENVAT rate of 16 per cent, pan masala with tobacco continues to attract an excise duty of 66 per cent. It is only in the case of pan masala not containing tobacco which includes mouth fresheners responding to suggestions, I had reduced the rate to 45 per cent which is still nearly three times the mean CENVAT rate, he clarified.Pan masala has been put in the negative list in the new North East Industrial Policy. Meanwhile, Congress MP Kirip Chaliha made a full-throated call to take back the excise concessions given to the ghutka companies under the NEIP. He claimed that certain companies have taken excise benefits to the tune of Rs 2,000 crore without the State getting any benefits. The gutkha companies were mere packaging companies and they did not use the local betel nuts. No employment was generated by them, he charged.There is some scam and since no public interest has been served, the entire amount of Rs 2000 crore given as excise duty exemption should be recovered from these companies, he demanded. Chaliha further drew the attention of the Finance Minister to the soaring prices of cement in the region because of hike in excise duty. Taking advantage of the situation, traders have hiked the prices of cement manufactured locally. He said because of the high transport cost, prices of imported cement have touched Rs 250 per bag.He suggested transport subsidy for imported cement and ceiling of Rs 190 for locally manufactured cement. The local cement companies are as it is taking the benefit of the concessions granted under the NE Industrial Policy, he said.He claimed that benefits given under the industrial policy have not percolated down to the masses. |
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