Gujarat Hikes Stamp Duty; Budget Allocated To Ensure Piped Water For All By 2024

Presenting his seventh Budget for the state on July 2, 2019, deputy chief minister Nitin Patel has laid out that stamp duty will be hiked with an aim to add an estimated Rs 107 crore to the government revenue at the end of the financial year. The total outlay stands at Rs 2.03 lakh crore, the highest ever till now and the focus is on the development of the state, with 62 per cent of the overall allocation going for developmental works. The major focus areas have been agriculture, water management, green and clean energy, environment, agriculture and employment.  

Why does the Gujarat government need to hike its stamp duty? 

Post the implementation of Goods and Services Tax (GST) , the state’s revenue has gone down by Rs 4,000 crores and therefore, measures are being taken to ensure that the revenue coffers get back their health. So, going ahead, homebuyers will have to reserve a higher budget in view of the fact that stamp duty has been hiked. This is applicable on not just real estate transactions but various instruments such as power, adoption deed, marriage registration, partnership and release of ancestral property in favour of heirs.  

Stamp duty varies from one to ten per cent depending upon the state and higher stamp duty is a sizeable cost on the overall cost of a property. In Gujarat, the existing stamp duty is 4.9 per cent of the property value and through various measures, the state government expects to clock in Rs 154731.96 crores in the current financial year. Sometime back, the government was also planning to bring about some changes in the revenue laws and revise the jantri rates. A decision on this is still pending.  

Piped drinking water for all in Gujarat 

Prime Minister Modi’s ‘Nal Se Jal’ scheme that found its way into the ruling party’s manifesto, is being ambitiously taken forward in Gujarat. By 2024, every household will be supplied with piped drinking water and in the Gujarat state budget, this aim has been backed with a budget of Rs 20,000 crores for the next three years.  

Besides, water conservation has been allotted a budget outlay of Rs 7,157 crore.  

Emphasis on solar energy 

Those opting for solar roof-tops will be given a subsidy of 40 per cent up to 3KV and a subsidy of 20 per cent for systems between 3-10KV. An allocation of Rs 1,000 crores has been reserved for this. The state plans to increase its capacity from the existing 8,885 MW to 30,000 MW by 2022.   

Focus on job creation 

Under the Mudra Yojna, about 50 lakh people and 25 lakh women may be set to benefit. Loans would be rolled out to encourage such beneficiaries to take up self-employment. Besides these, budgets have been sanctioned for the education, health and road and building department as well.