Punjab Budget: No new taxes imposed; education, health key focus areas

Chandigarh, March 5

Punjab Finance Minister Harpal Singh Cheema on Tuesday presented the state’s budget with a total outlay of Rs 2.04 lakh crore for 2024-25, announcing a new canal project and proposing to transform government schools as ‘Schools of Brilliance’ and ‘Schools of Happiness’ but did not impose any fresh tax.

Keeping the budget’s focus on health, education and agriculture sectors, the finance minister also announced a new initiative Punjab Horticulture Advancement and Sustainable Entrepreneurship to improve product quality and develop horticulture crop clusters in major production zones.

The budget remained silent on giving Rs 1,000 monthly to each woman, which was one of the key “guarantees” of the AAP before coming to power in 2022.

Replying to a question on his party’s key promise during media interaction later, Cheema said it will soon be fulfilled while claiming that 85 per cent “guarantees”, including free electricity, which were announced before the 2022 assembly polls, have been honoured.

Terming it a “pro-people” budget, Cheema further said no fresh tax has been imposed.

Cheema said the revenue from excise is expected to reach Rs 10,350 crore in 2024-25 and asserted that the collection would cross five figures for the first time.

Chief Minister Bhagwant Mann hailed the budget 2024-25 as a step forward towards carving out ‘Rangla Punjab’ through inclusive, balanced and comprehensive development of the state.

Opposition leader Partap Singh Bajwa (Congress) dubbed it a “failed” budget.

In his budget, Cheema proposed an outlay of Rs 2,04,918 crore for the financial year 2024-25, up from Rs 1,99,076 crore in 2023-24 (revised estimates).

The budget has earmarked Rs 9,330 crore towards power subsidy for the agriculture sector and Rs 7,780 crore for providing free electricity of 300 units per month to domestic consumers.

While announcing several new initiatives, the finance minister allocated Rs 575 crore for various crop diversification schemes for farmers.

Cheema said Rs 13,784 crore has been earmarked for the agriculture sector and Rs 16,987 crore for the education sector.

The effective revenue deficit and fiscal deficit are expected to be 2.77 per cent and 3.8 per cent of the state GDP, respectively, he said, adding that the two respective figures were 3.13 per cent and 4.12 per cent in the previous fiscal.