Andhra Pradesh CM Chandra Babu Naidu is all set to go for hike in the taxes to increase the revenue of the state. In this regard officials were to prepare proposals to increase hike in areas which would not effect the common man. The main concern is to see that the humongous loss caused due to Hudhud cyclone and the revenue deficit which would surface, needs to be addressed.
Hence the proposals to be put forward in the cabinet meeting on Thursday mostly will be on land registration charges, gift deeds, settlement deeds, conersion of agricultural land to commercial one, entry tax on goods vehicles, setting up of distilleries etc etc. These are some areas on which hike in tax can be levied upon. The commercial taxes have improved the revenue in the first and half of the fiscal year by 13.86 percent.
Besides these proposals, the government of AP has decided to go for cutting in non-plan expenditure. Since it was observed that last year the non-plan expenditure is more by 27% in the same period as now, AP government will go for 20 percent cut in such spending according to the State Finance Minister Yanamala Ramakrishnudu.
Since Naidu’s election promises like old-age pensions, loan waiver and other things are going to incur heavy expenditure apart from the regular expendirures for salaries and other things; increasing revenue by the way of hike in taxes and decreasing expenditure by cutting non-plan expenditure is being worked out by AP government.
