PUDUCHERRY: The budget for the current year will be presented by Chief Minister N Rangasamy on Wednesday. Going by his government’s past performance, the budget is likely to be tax-free once again, as out of the seven budgets presented during his previous tenure, six had been tax-free.The Planning Commission has already fixed a plan size of `2,750 crore for the current year and already, the vote on accounts has been passed for `2,241 crore for the first six months. Though the government is facing a financial crunch and needs funds not only from the Centre, but also by enhancing its own resources, it is unlikely to increase the taxes or introduce fresh taxes as it would have far-reaching consequences. At a time when the functioning of the government is under focus, it is not likely to burden the people with more taxes before living up to its electoral promises and would like to bask in the glory of its welfare schemes.The budget is certainly going to find a few of the assurances given by the Chief Minister in line with the party’s election manifesto.However, proposals for additional resource mobilisation is expected to come from various quarters. The government will have to look at Sales Tax and Excise, which are among the main sources of revenue for Puducherry. Suggestions have come for enhancing certain tax structures by modelling the VAT on the lines of Tamil Nadu. The VAT on certain items has remained low as compared to the neighbouring State. Similarly, for excise, licence fee and excise duty for liquor shops could be revised. The excise duty was revised last in 2008 and the licence fee last year. As in the past, the government might raise it after the budget session though a Government Order, it is said.
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