New taxes unlikely, steps to boost revenue on anvil in Punjab

Chandigarh, June 26

With the state finances in a mess, as revealed in the White Paper on state finances, the Aam Aadmi Party government will find it hard to announce some of its major pre-poll promises for implementation in the Budget proposals for 2022-23, which will be tabled in the Punjab Vidhan Sabha on Monday.

It is unlikely the government will impose any new taxes. Punjab Finance Minister Harpal Cheema has gone on record saying this. Even AAP MLA from Sunam, Aman Arora, had announced on the floor of the House that no new taxes would be imposed.

However, the government will announce steps to boost revenue through better excise and mining policies that will help plug smuggling of both liquor and minor minerals.

Better tax enforcement initiatives and widening the tax net are also expected to be announced. Emphasis will also be on increasing the share of non-tax revenues in total revenue receipts.

The promise of Rs 1,000 allowance to all women above 18 years of age may not be part of the Budget proposals, say sources.

The emphasis in the Budget, say sources, will be primarily on agriculture, education and health sectors. The government will also provide for rolling out the new “atta” scheme, wherein foodgrain/flour will be delivered on the doorstep. Budget outlays for providing 300 units of free power are also likely to be announced.

To woo the industry, the government may announce that it is working on a new industrial policy, while some incentives for start-ups may be offered.

Fiscal prudence and cutting down on wasteful expenditure will form the bedrock of this Budget. Mergers of loss-making public sector undertakings and boards and corporations, besides disinvestment in some of these, will be announced.

The government, which had inherited immediate liability of Rs 24,351 crore, will explain ways to do away with it in the Budget proposals.

Budget today

• Emphasis likely to be on agriculture, education and health sectors
• May roll out ‘atta’ scheme, promising foodgrain/flour delivery on doorstep
• Outlays for 300 units of free power likely to be announced
• Rs 1,000/month to women may not be part of proposals