BIHAR- Violence against the Poor

Budget Memorandum, has mentioned two other factors that would help reduce the deficit : the likely devolution to the state government of Central taxes and the special Plan assistance from the government of India for the state's major irrigation and power projects, and strenuous efforts to exercise strict control on administrative expenditure. The state government has set up an economy committee which, apart from suggesting measures to reduce expenditure, would also put up plans to streamline the functioning of various departments and ensure efficiency. In previous years, it had been a common practice for the state government not to impose any new tax at budget time but to announce a few direct and indirect levies in the course of the year so as to enhance the state revenues without the people feeling the pinch, or the legislators and critics having an opportunity to lodge protests. Last April bus fares were raised by 25 per cent. In November the state government raised the rate of sales tax on general goods from 6 per cent to 7 per cent, thus arranging Rs 60 lakhs additionally in a full year. Land revenue receipts were originally estimated at Rs 4.70 crores in 1976-77, while the revised estimates have raised the figure to Rs 6.26 crores. The 1977-78 budget, however, estimates receipts from land revenue in the year at only Rs 5.50 crores.