The Mamata Banerjee-led West Bengal government will score a dubious first this fiscal by not presenting a budget for the year.
The state has already completed a major part of the year riding on two votes-on-account. The state, a source said, plans to instead present a budget for next year in March and convert the votes-on-account to a budget.
Because it has not adopted a budget, the Planning Commission too has not released the Plan funds for the year. The state has, however, already assured itself of a grant of R8,300-crore special package in November from the Centre that came without any strings attached. A source in the state finance ministry said that till March, it will manage by taking sanctions for expenditure from the governor for each items on an individual basis.
Despite all these, the Planning Commission has not sent any letters to the state asking it to present a budget.
By not presenting a budget for a fiscal, Banerjee runs the risk of contravening a constitutional provision. DK Srivastava, dean of the Madras School of Economics and an authority on state finances, said that if this was true, he could not recall any such instance by an Indian state. ?What is the justification for a state to not bring in the legislature its borrowing and expenditure plan?? he said.
A vote-on-account, according to him, was not enough. Till now, Bengal has borrowed R17,828 crore from the market this fiscal. It can borrow only R2,706 crore more, which the Centre has allowed as part of a debt relief package.
State finance minister Amit Mitra has presented two votes-on-account, classifying the second one as an ?abstract of annual financial statements?. If one includes the one presented by outgoing finance minister Asim Dasgupta in March, the state has already created a record of sorts.
Just after taking over as the chief minister, Banerjee cut the 4% VAT on LPG, creating a loss of R75 crore to the exchequer. Subsequently, she has not allowed a power tariff hike that could have benefited power utilities and the state.