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Interim allowance for Govt staff in HP Budget

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Ashwani Sharma Posted: Mar 07, 2008 at 2352 hrs IST
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Shimla, March 7 : A Rs 12,542 crore tax-free Budget for 2008-09 was presented by Chief Minister Prem Kumar Dhumal, who also holds finance portfolio, in the Assembly here on Friday. The Budget imposed no fresh burden on the people except Rs 2 per litre hike in milk procured by MILKFED, a Government-manned cooperative body. But this will meet a long-pending demand of nearly one lakh hill families engaged in milk production in the rural areas.

Dhumal announced continuation of food subsidy scheme by keeping a provision of Rs 90 crore against Rs 70 crore of the current year. Three new private medical colleges — at Mandi, Hamirpur and Una — and one IIT in Mandi district and a science college would be opened.

He announced five per cent interim allowance for Government servants and pensioners, payable from November 2007, abolition of “parchi” (registration) fee in hospitals and creating job avenues for 26,000 youths, nearly 18,000 alone as teachers for recently-opened educational institutions.

The Budget shows a debt liability of Rs 22,930 crore, an annual interest payment of Rs 1,834 crore and a revenue surplus of Rs 70 crore — perhaps for the first time.

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The CM proposed to raise more loans during next year to meet expenditure, including salaries and pensions which amount to Rs 3,376 crore and Rs 1,206 crore, respectively. He announced 1 per cent incentive for the revenue-generating department for mobilising additional incomes above their targets.

Some of the proposed welfare measures included a pre-merit scholarship scheme for OBC students which is to cost Rs 90 lakh, social security pension for all left-over persons, lifting of restrictions on khair wood export, special insurance scheme for weavers, parity in remuneration payable to Vidya Upasaks and special drive to fill up three per cent posts of sportsmen. Dhumal raised the MLA’s local area development grant from Rs 25 lakh to Rs 30 lakh, of which Rs 5 lakh would be spent only on CM’s rural roads project being revived from next year.

For ex-servicemen, he doubled the margin money for loans from Rs 50,000 to Rs 1 lakh. This will enable them to raise loans up to Rs 10 lakh. He announced a grant of Rs 95 crore, including Rs 14 crore for repaying loans, for HRTC.

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