Shillong, March 18 (IANS): Tobacco, petroleum and limestone are set to become more expensive in Meghalaya as the Congress government levied fresh taxes on them in order to generate additional revenue of Rs.30.91 crore annually.

Presenting a Rs.819 crore deficit budget for 2015-16 in the state assembly on Wednesday, Chief Minister Mukul Sangma, who also holds the finance portfolio, said he proposed 7 percent tax hike on tobacco products, 40 percent cess on cement products, 1 percent hike in diesel and withdrawal of 50 percent exemption of Rs 1.13 per litre on petrol.

He has accorded highest importance to the education sector allocating Rs.681.88 crore, followed by creation of infrastructure like roads and bridges, for which Rs.555.20 crore has been allocated, while Rs.380.50 crore has been provided for the health and family welfare department.

The state's total estimated receipts stand at Rs.8,434 crore and total expenditure is projected at Rs.9,253 crore, thus leaving a deficit of Rs.819 crore, which is around 2.8 percent of the Gross State Domestic Product (GSDP).

In order to generate additional resources, Sangma proposed the withdrawal of the June 2012 exemption of 50 paise per litre on diesel and 50 percent of the exemption of Rs.1.13 per litre on petrol.

Additionally, the diesel price has been increased by 1 per cent from the existing rate of Rs 12.5 percent to 13.5 percent, he announced.

Moreover, cigarettes and other tobacco smoking products would be dearer with the government increasing the rate of tax from the existing 20 percent to 27 percent.

In order to support the primary education, Sangma introduced a cess of Rs.20 per metric tonne on clinker besides enhancing cess rate on limestone from Rs.20 to Rs.40 per metric tonne and some other raw materials.

Admitting that his government faced a most daunting task to present the budget as the state's revenue was hit by Rs.600 crore due to the ban on coal mining by the National Green Tribunal ,he, however, said that he would utilise all other possible sources to generate additional revenue.