Huge debt, AAP offers no sops in Punjab Budget
Ruchika M Khanna
Chandigarh, March 5
Fiscal prudence gained priority over wooing the electorate in Aam Aadmi Party’s pre-election budget, presented by Punjab Finance Minister Harpal Cheema in the Vidhan Sabha today. Notably, no new taxes have been imposed for 2024-25 in this third budget of the AAP Government. With emphasis on education, healthcare and public infrastructure, the budget of Rs 2,04,918 crore affords no bonanza for any section of society.
Editorial: Punjab Budget
The much-expected Rs 1,000 financial assistance for women over 18 years of age, as promised by the ruling party before the 2022 Vidhan Sabha elections, remains elusive, though his counterpart in AAP-ruled Delhi declared the same yesterday. The neighbouring state of Himachal Pradesh too announced an assistance of Rs 1,500 for women. The promised hike in Old Age Pension also found no mention. Despite the ongoing farmers’ protest, no fiscal support to buy crops being promoted under Crop Diversification Programme or any price stabilisation fund was announced.
Projects, schemes In the offing
- New schemes for skill development of schoolchildren, Mission Samarth and Punjab Hunar Vikas Yojana announced
- To implement drug de-addiction initiatives, Rs 70 cr has been allocated
- Rs 5,925 crore set aside for providing social security pensions
- 1,000 sports nurseries to come up in all districts of the state
- An eco-tourism project to be completed in 3 years
- Free bus travel for women to continue; Rs 450 crore reserved for it
Aid to women among Promises not kept
- Rs 1,000 financial assistance for women over 18 years not given
- Promised hike in old-age pension finds no mention
- No fiscal support for farmers to buy crops under diversification
Although the Centre has held back Rs 8,000 cr funds, we have managed to increase tax revenue by 21.68% in the current fiscal. Harpal Cheema, FM
This may be considering the fact that the state’s debt is set to rise to Rs 3.74 lakh crore by March 2025, up from Rs 3.43 lakh crore till March 2024. While the AAP Government has taken a debt of Rs 59,994.29 crore from April 2022 to January 2024, a debt of Rs 38,331.48 crore would be raised in 2024-25.
While 52.88 % of the state’s revenue receipts – targeted at Rs 1,03,936.19 crore- would go towards paying salaries, wages and pensions, a humungous 35.37 % of these receipts would just be required for servicing of debt – Rs 23,900 crore towards payment of interest and Rs 12,866.56 crore towards repayment of debt. Power subsidy will take away 19.4 % of the revenue receipts.
Capital expenditure in the first 10 months of the ongoing fiscal was Rs 3,393.05 crore, which the government proposes to increase to Rs 6,406.29 crore by end of March. The target of capital expenditure for 2023-24 was Rs 10,354.53 crore. For 2024-25, the government has lowered its capex target to Rs 7,445.03 crore.
“Although the Centre has held back our funds to the tune of Rs 8,000 crore, we have managed to increase tax revenue (OTR) by 21.68 % in the current fiscal. We will further increase it by 14.59 % next year. It is for the first time that revenue from excise duty will cross Rs 10,000 crore in 2024-25. We expect a good increase in our GST and stamp duty collections, electricity duty and taxes on vehicles. Our focus has been on job creation, with an average of 55 jobs given each day,” Harpal Cheema said. A jump of 11.89 % was also expected in the Non-Tax Revenue next fiscal though grants-in-aid from the Centre would decline by 32 %, the Punjab Finance Minister added.
In the offing is construction of the Malwa Canal that will run parallel to Rajasthan Feeder Canal; upgradation of 100 schools to ‘Schools of Brilliance’; 100 primary schools to ‘Schools of Happiness’, besides setting up Schools of Applied Learning. The total outlay in education sector is the highest at Rs 16,997 crore or 11.48 % of the total budget. New schemes for skill development of school children – Mission Samarth and Punjab Hunar Vikas Yojana – have been announced.
As for Agriculture sector, which has got Rs 13,784 crore, emphasis has been laid on crop diversification, with Rs 575 crore being reserved for it. The health sector was allocated Rs 5,264 crore.
Besides, Rs 9,388 crore has been allocated for various social welfare schemes. Out of this, Rs 5,925 crore has been set aside for providing social security pensions. A sum of Rs 272 crore has been allocated for Sports and Youth Services to create 1,000 sports nurseries in all districts of the state, besides other expenses.
While 829 Aam Aadmi clinics have been established till date, many more are in the pipeline. For drug de-addiction initiatives, Rs 70 crore has been allocated. Industry sector has got Rs 3,367 crore, which includes subsidised power to industrial consumers. An eco-tourism project, to be implemented in three years, has also been announced. Funds allocated for Home Affairs and Justice department stand at Rs 10,635 crore. Free bus travel for women would continue and the government has reserved Rs 450 crore for it.
