The Punjab government has proposed an annual plan of about Rs 13,000 crore for 2012-13, which would be 12% more than the annual plan of the previous fiscal year.
Punjab finance minister Parminder Singh Dhindsa said on Saturday that he would meet Planning Commission officials on Monday for approval of the annual plan.
He said the bulk of the funds have been proposed for spending on the social sector, while adequate funding has been proposed for other sectors as well.
For the previous fiscal year, Punjab's annual plan was to the tune of Rs 11,520 crore its biggest ever.
On revenue generation, the minister said the state would generate additional resources to the tune of Rs 4,000 crore this year.
"We will get additional revenue of Rs 500 crore from stamp duty collection, Rs 3,000 crore from VAT collection and Rs 500-600 crore from excise on liquor this fiscal year," he said.
Punjab has been facing a staggering debt to the tune of Rs 77,585 crore, with over 70% revenue receipts being spent on payment of salaries, pension and debt servicing.
The state has been borrowing heavily for spending on development expenditure as fiscal sops like free power to farmers, BPL families and subsidised atta-dal scheme have been draining the state's resources.
Punjab had recently demanded from the Centre a moratorium on the payment of small savings borrowings of about Rs 22,000 crore for five years in a bid to ease the fiscal situation of the state.
However, the Centre had asked the Punjab government to contain its rising expenditure, especially on free power, to bring the 'deteriorating' fiscal position back on track.