Maharashtra budget 2021: Farmers permitted to repay loans with 0 per cent interest

The Finance Minister of Maharashtra presented the state budget 2021 on Monday, March 8, in Mumbai.

Maharashtra budget 2021: Farmers permitted to repay loans with 0 per cent interest

On Monday, March 8, Deputy Chief Minister and Finance Minister Ajit Pawar presented the state budget (Maharashtra Budget 2021).

Even though the expectation was that the Finance Minister would provide relief to the people by decreasing the prices of fuel, Pawar announced a hike on home-made branded and non-branded liquor by 5 per cent. The VAT on branded and non-branded liquor has been increased from 60 per cent to 65 per cent. The rate of all types of VAT has been increased from 30 per cent to 40 per cent. Therefore, alcohol is going to be more expensive in the state now. However, he announced that the farmers will be allowed to repay their farm loans with 0 per cent interest.

The government had last year increased the value-added tax (VAT) on petrol and diesel by INR 1 per litre in the budget. On the one hand, four states - West Bengal, Rajasthan, Assam and Meghalaya - have cut local taxes on fuel, however, the people in Mumbai are yet to get such relief.

During the budget presentation, Pawar asserted the government has also decided to take measures to encourage women to invest in real estate. The deputy chief minister introduced a measure allowing home buyers to get a waiver of 1 per cent on stamp duty if a house is purchased solely in the name of women.

Moreover, the Finance Minister announced that women in rural areas can travel free on state transport buses in rural areas. Furthermore, he stated that the fiscal deficit of the state for the financial year 2021-2022 is pegged at INR 10,226 crores. The state has also allocated INR 9,573 crores for coastal road development between Revas in Raigad and Redi in Sindhudurg.

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