What will the CMP cost budget 2004?
- Raising social sector outlay to 9 per cent of GDP (education 6 per cent and health 3 per cent): an extra Rs 25,000 crore every year for Centre and states. Since education and health are state subjects, the Centre will have to bear only Rs 5,550 crore.
- Employment guarantee scheme under new Act: a total of Rs 68,448 crore with Centre-state cost sharing of 75:25. Extra burden on the Centre, Rs 8,126 crore every year.
- And reduction in custom duty on oil imports has resulted in Rs 3,000 crore revenue loss.
How much the anticipated measures could mop up
- Implementation of full Kelkar report is revenue-neutral.
- Disinvestment of Rs 16,000 crore (last fiscal) to be around Rs 200 crore at best.
- Proposed 2 per cent eduction cess on all central tax revenue to yield only Rs 5,000 crore.
- But service tax extension may be enough to get all the revenue, says NCAER study. An 8 per cent service tax on transport sector alone should net Rs 15,000 crore, against an interim budget target of Rs 13,000 crore.
