The minister said that during the next financial year, receipts would be R80,000.24 crore, while expenditure would be R80,030.98 crore. Despite this, the year would end with a deficit of R107.19 crore, Raghavji said.
Raghavji said revenue during the next financial year was expected to be R69,913 crore, of which R28,311 crore would come from state taxes.
Raghavji said that the implementation of value-added tax or VAT in the state has been computerised and it had become more transparent and convenient for businessmen. He added that the state government believed that the tax administration should be convenient for taxpayers and its implementation should be done in an easy way.
He said that in the 2010-11 budget, in order to make industries more competitive, some were given exemption from entry tax and added that this will continue in the next financial year also.
The minister said the entry tax exemption would continue for engineering industries and the manufacturing sector, including metal casting, ferrous and non-ferrous metals, iron and steel.
The minister, who did not impose any new tax,announced that the rate of VAT on petrol and aviation turbine fuel and multi-stage storage of petrol and diesel would be reduced and this would result in a revenue loss of R50 crore.
Raghavji said that setting up power projects was capital-intensive and, therefore, they were exempted from VAT, at least in the initial stages.
He said that eight years ago, when the BJP came to power in Madhya Pradesh, commercial tax on petrol and diesel was 28.75%. This now stands at 23% for diesel, and it was proposed to reduce the VAT on petrol to 27%.
Raghavji said that a provision of R2,893 crore had been made in the next financial year for the police force, saying it was a measure of the importance the state government attached to maintaining law and order.
Leader of Opposition in Madhya Pradesh Ajay Singh said that the 2012-13 state budget should have mentioned the funds received from the Centre under various schemes.
Had the amount of funds received from the Centre been mentioned, the truth would have come out about chief minister Shivraj Singh Chouhans allegations that the Centre was discriminating against Madhya Pradesh, he said.