Gandhinagar:  With an eye on assembly polls which is due in December this year, the Gujarat government on Friday announced tax sops worth Rs 410 crore for the people of the state.

Gujarat Finance Minister Vajubhai Vala presented Rs 1,01,712 crore budget on Friday in the state assembly for the financial year of 2012-13.

The budget shows an estimated overall surplus of Rs 317.22 crore and the government has increased annual planned expenditure by 33 percent to Rs 50,599 crore from 38,000 crore in 2011-12.

A provision of Rs 3,195 crore has been made to be spent on Narmada Canal network for irrigation and  Rs 500 crore has been allocated for the Metro rail project between Ahmedabad and Gandhinagar.

Government said, “Ours is a people oriented budget which is aimed at prosperity of all in the state.”

A relief of Rs 200 crore in the state budget in the form of tax exemption will help nearly 10 million electricity consumers who will get a benefit of reduced duty.

Provisions have been made to lower the prices of large number of consumer items ranging from toys, helmets, sanitary napkins, e-bikes, food items, ribbons and cosmetic products.

Finance Minister Vajubhai said “In total, a relief of Rs 410 crore has been given to the people of the state which includes slashing of duty on electricity, value added tax (VAT) on many stuffs and stamp duty.”

The State budget for the fiscal year of 2011-12 was Rs 80,694 which has been increased by 26 percent to Rs 1,01,712 crore for the fiscal 2012-13.

According to Vijubhai, Gujarat government incurs a debt of Rs 1,00,024 crore which is below the limit of 6 percent set by the Centre and Reserve bank of India.

Gujarat is entitled to receive loan up to 27 percent of its GDP whereas the loan incurred is by it just 20.72 percent of its GDP.

(JPN/Bureau)