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No new taxes proposed in Punjab budget

The Punjab government on Wednesday presented Budget for the 2015-16 financial year without proposing any new taxes. Presenting his fourth successive Budget, Punjab finance minister Parminder Singh Dhindsa estimated a deficit of Rs 125 crore at the close of 2015-16 financial year.

chandigarh Updated: Mar 18, 2015 15:52 IST
PTI
Punjab-finance-minister-Parminder-Singh-Dhindsa-presenting-the-budget-in-Punjab-assembly-on-Wednesday-HT-photo
Punjab-finance-minister-Parminder-Singh-Dhindsa-presenting-the-budget-in-Punjab-assembly-on-Wednesday-HT-photo

The Punjab government on Wednesday presented Budget for the 2015-16 financial year without proposing any new taxes.

Presenting his fourth successive Budget, Punjab finance minister Parminder Singh Dhindsa estimated a deficit of Rs 125 crore at the close of 2015-16 financial year.

The receipts for the next fiscal have been proposed at Rs 60,585 crore as against Rs 54,096 crore in current financial year.

Dhindsa said Rs 60,585 crore receipts in coming fiscal include Rs 46,229 crore of revenue receipts and Rs 14,356 crore of capital receipts as against the current year figures of Rs 42,742 crore and Rs 11,353 crore, respectively.

The expenditure has been proposed at Rs 61,814 crore as against the current year's figure of Rs 56,431 crore.

He said next fiscal's proposals include Rs 52,623 crore of revenue expenditure, Rs 4,857 crore of capital outlay, Rs 3,598 crore of repayment of public debt and Rs 736 crore of loans and advance disbursals.

ALSO READ: CM hails state budget, calls it balanced, growth oriented

Dhindsa said the fiscal deficit will be 2.98 per cent of GSDP (Gross State Domestic Product) and revenue deficit will be 1.60 per cent of GSDP.

He said that his Budget proposals were of Rs 79,314 crore and annual plan was of Rs 21,174 crore.

"However, the effective Budget size is Rs 61,814 crore as the above figure (Rs 79,314 crore) contains a Budget provision of Rs 17,500 crore towards ways and means transactions during the current year," he said.

The minister said, "The year begins with a negative opening balance of Rs 69 crore. The total receipts are likely to be Rs 60,585 crore. The closing balance at the end of 2015-16 would be (-) Rs 125 crore."

He said the world is upbeat about India as our economy has entered into a promising era with a series of economic reforms ushered by the NDA government at the Centre.

ALSO READ: Highlights of Punjab Budget

"These times present a unique opportunity to the state to uplift its own economy by becoming a key partner in the national economic growth process," he said, adding that the SAD-BJP alliance government in Punjab with support of NDA government at the Centre will herald a new dawn for Punjab.

Dhindsa said the Budget has been prepared against a changed backdrop created by increased devolutions from the 14th Finance Commission and a concomitant reduction in plan transfers to states in the Union Budget.

"The steps and policies outlined in the Budget for 2015-16 presented by me reflect on the commitment of the government to put the state economy on path of sustained (and) high economic growth, the benefits of which will reach all sections of the society," he added.

Dhindsa said the Budget also lays down the steps to steer Dhindsa said the Budget also lays down the steps to steer
the state towards the course of prudent fiscal consolidation and industrial development.

"While we chart the course of Punjab's economic progress we are mindful of the diverse challenges facing the state like
drug abuse, adverse child sex ratio, rising incidence of cancer, fiscal stress and unemployment in youth," he said.


As per advance estimates, the GSDP at current prices is estimated to grow at 10.16 per cent in the current fiscal.

"During the year 2013-14, the GSDP at constant prices grew at 5.73 per cent against the national growth rate of 4.74 per cent. The per capita income of the state at current prices is also estimated to increase from Rs 92,350 in 2013-14 to Rs 99,578 in 2014-15," he added.

He further said that to promote growth by judicious use of scarce resources and to achieve intergenerational equity,
fiscal discipline is of utmost importance.

"The government is taking all steps to ensure that it "lives within the means" and thereby stabilise its deficit and
debt position," he said.

The minister said that the 14th Finance Commission has increased the share of Punjab in central taxes from 1.389 per
cent to 1.577 per cent.

He added that the commission has also removed the state from the list of states needing revenue deficit grant.

Dhindsa said the Budget also lays down the steps to steer Dhindsa said the Budget also lays down the steps to steer the state towards the course of prudent fiscal consolidation and industrial development.

"While we chart the course of Punjab's economic progress we are mindful of the diverse challenges facing the state like drug abuse, adverse child sex ratio, rising incidence of cancer, fiscal stress and unemployment in youth," he said.

As per advance estimates, the GSDP at current prices is estimated to grow at 10.16 per cent in the current fiscal.

"During the year 2013-14, the GSDP at constant prices grew at 5.73 per cent against the national growth rate of 4.74 per cent. The per capita income of the state at current prices is also estimated to increase from Rs 92,350 in 2013-14 to Rs 99,578 in 2014-15," he added.

He further said that to promote growth by judicious use of scarce resources and to achieve intergenerational equity, fiscal discipline is of utmost importance.

"The government is taking all steps to ensure that it "lives within the means" and thereby stabilise its deficit and debt position," he said.

The minister said that the 14th Finance Commission has increased the share of Punjab in central taxes from 1.389 per cent to 1.577 per cent.

He added that the commission has also removed the state from the list of states needing revenue deficit grant.