Bhopal, Feb 26 (IANS) Madhya Pradesh Finance Minister Raghavji Monday presented the state budget for 2007-08 that was hailed by Chief Minister Shivraj Singh Chouhan as "people-oriented" though opposition Congress said it would only add to the burden on the common man.

The state budget for 2007-08, presented in the assembly, shows a deficit of Rs.4,654 crores while the government proposes to raise Rs.2,006.73 crores.

"The state expects revenue receipts of Rs.27,995.84 crores and expenditure of Rs.25,989.11 crores, leaving a revenue surplus of Rs.2,006.73 crores," Raghavji said in his speech that was interrupted intermittently by the opposition.

The minister, however, said rationalisation of taxes on several commodities would fetch an additional income of Rs.54 crore but the reduction in value added tax (VAT) on diesel by 2.75 percent would put an additional burden of Rs.178 crore on the state exchequer. VAT has also been reduced on traditional cold drinks.

There has also been a reduction in VAT on items like sewing machines and its parts, baby food, pure ghee, pumping sets, raw material used for making handloom saris including silk and zari.

However, entry tax has also been enhanced from 0.5 percent to one percent on several products.

Chouhan said his government had given a people-oriented budget and introduced 'gender budgeting' in by reserving half the funds in all schemes for women.

Madhya Pradesh Congress president Subhash Yadav on the other hand said that the government had increased financial burden on the common man.

Senior Economist R.S. Tiwari said the finance minister could be praised for not incurring expenditure beyond prescribed limits and doing work in areas of improving basic facilities such as roads, water and power.

"However, a major challenge remains that no roadmap has been prepared for long-term development of the state," he said.