Dr Thomas Issac needs to give lot of answers on the proposals mentioned in his penultimate budget. Though acclaimed as a good economist, i wonder why he has not shown any economic sense while proposing many items .
My first query to Dr Issac would be, why he is silent about the repayment obligations of KIIFB. He had successfully sourced large funds for KIIFB (through masala bonds) which is expected to be utilised for infrastructural development of the state. Well and good. But at the time of raising the funds as well as while presenting the budget he has not mentioned how KIIFB proposed to meet the repayment obligations when it becomes due. Or is it that Dr Issac thought it better to leave it to the next finance minister ?
Regarding additional revenues to be raised, he has sought to impose additional taxes on bikes costing less than rupees two lacs and cars costing less than 15 lacs! Two questions arise here. In the GST regime has the state any power to levy additional tax on goods covered under GST? Even if state can do this, why has he chosen to tax the lower segment instead of vehicles in the higher segment ? That would have made more sense as people who spend more money for high end vehicle could be expected to pay more tax too!
One also wonders why the minister has chosen to leave the liquor untouched to raise resources.
While he has chosen to increase the welfare pensions by rupees one hundred (probably keeping an eye on the local self government bodies election to be held later this year), he has also mentioned to save rupees 700 crores from this category by removing the in eligible people from the list. If that be the case is he not admitting that the state made wrong payment of rupees 700 crores per year in the past due to the lapses on the part of officials or elected representatives? Would he dare to recover such wrong payments made from the beneficiaries concerned or the officials or politicians concerned?
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