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No new taxes in
Punjab
Budget but picture is grim
WSN Network
CHANDIGARH: Punjab Finance Minister Manpreet Singh Badal on Tuesday
presented a tax-free Budget for 2009-10, with a huge fiscal deficit
but little to show on how to mop up revenue. The Budget also did not
specify the steps to keep a check on the mounting debt: Rs 57,369
crore. In his speech delivered in the Vidhan Sabha, Manpreet said
Punjab’s economy grew at an average rate of 5.13 per cent,
consistently underperforming against the national average of 7.8 per
cent during the 10th Plan (2002-2007). The deficit was on the rise
mainly on account of the provision made for implementation of
recommendations of the 5th pay commission — additional liability of
Rs 3,000 crore, with Rs 4,800 crore for payment of arrears. The
fiscal situation of the state had been under stress for many years
mainly on account of inadequacy of revenue receipts in meeting with
the growing expenditure, it was pointed out.
The increase in MSP of wheat and paddy and record procurement mainly
contributed to the high growth in the primary sector — 5.08 per cent
as compared to 4.87 in 2007-2008 However, the secondary sector —
manufacturing, construction and power — grew only at 6.5 per cent as
against 8.82 in 2007-2008.
Manpreet rued that the state was not receiving adequate funds from
the Centre. Punjab had a miniscule share of 1.30 per cent in the
Central taxes devolved to states. This was one of the main reasons
for its dwindling fiscal health, the Budget speech said. Another
reason for slow growth as the inability to usher in investment from
outside, attributed to the tax benefits to Himachal Pradesh and
Jammu and Kashmir.
8
July 2009
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