Vote-on-account: Govt to seek Rs 27,000 crore

Ruchika M Khanna

Tribune News Service

Chandigarh, March 27

The Congress government will seek the Vidhan Sabha’s approval on Wednesday to present the vote-on-account for about Rs 27,000 crore to meet the state’s expenses for the next three months (April 1 to June 30).

The government proposes to spend about Rs9,000 crore each month during the first quarter of 2017-18. This amount would be Rs3,753 crore per month more than what the then Akali-BJP government spent during 2016-17. The total expenditure for the ongoing fiscal was Rs62,967.81 crore (Rs5,247 crore per month).

Vote on Account is an interim Budget that spans the transition phase for a new government till a regular Budget is passed. The latter is likely to be presented in June.

Sources in the Finance Department told The Tribune that the yawning gap between the revenue receipts and the revenue expenditure was a major cause of concern. By the end of this fiscal, the revenue deficit is expected to cross Rs8,000 crore. The latest audited figures (up to January 31) reveal that the deficit till then was already Rs5,276.46 crore. The Budget estimates, presented in March 2016, had projected the revenue deficit at Rs7,983 crore.

The state’s total revenue receipts (up to January 31) are to the tune of Rs36,176.09 crore (as against targeted Rs50,180.96 crore for the entire fiscal). The VAT and excise collections are woefully short of the Budget estimates.

Another worrying feature revealed in the audited fiscal indicators for the current financial year is the hike in borrowings and other liabilities. Against a target of Rs13,087.24 crore for borrowings, the state has raised Rs15,782.94 crore till January alone.

Finance Minister Manpreet Singh Badal will have to do a tightrope walk, trying to make provision in the Budget for the sops promised by the Congress, while keeping the cash registers ringing at the same time.