Punjab govt presents tax free budget
NAVDEEP VIRK
Tuesday, 07 July 2009
Priority for energy and transport sector
CHANDIGARH: Punjab Finance Minister Manpreet Singh Badal on Tuesday presented a deficit budget of total size of Rs.40262.15 crore in state assembly. The minister has not proposed any fresh taxes while giving priority to energy, transport and social services sectors.

While presenting the budget, Badal said that The Revenue Deficit for 2009-10 is expected at Rs. 4234 crore (2.49% of GSDP) and added that annual Plan of 2009-10 ha an outlay of Rs. 8625 crore – an increase of 39% over annual plan 2008-09 having outlay of Rs. 6210 crore.

He said that economy of Punjab grew at an average growth rate of 5.13 percent consistently under performing against the national average of 7.8 percent during the 10th plan and advanced estimates for 2008-09 project a growth rate of 6.26 percent against national growth rate of 7.09 percent.

He said that state's own revenue has shown upward trend and collection from VAT in 2008-09 have increased by 20.46 percent over previous year. Similarly receipts from stamp duty and land registration have increased by 10.36 percent.

He said that previous government while demitting office left behind a debt of Rs.48344 crores and debt Gross State Domestic Product Ration was hovering around 40 percent. He said that repayment liabilities have siphoned off Rs.4818 crore in 2008-09. He claimed that state had maintained fiscal discipline to come over the poor economic state.

Badal said that the plan expenditure during 2008-09 was Rs. 6925 crore against an outlay of Rs. 6210 crore which is more than 111%.

The outlay for annual plan 2009-10 is Rs. 8625 crore, 39% higher than last year’s approved outlay. This is largest Annual Plan so far approved for the State and will put Punjab on high growth path. 30% of the total plan is earmarked for the energy sector having thrust towards power generation, distribution and up-gradation of transmission.

The Social Services Sector with 26% of the plan outlay is the second priority sector with thrust on pensions to old and other sections of the society, skill development and employment generation, rural water supply schemes, urban development and welfare of weaker sections.

Badal has allocated Rs.2596.75 for energy sector, 30 percent of total plan outlay, Rs. 2213.91 crores for social service sector, 25.67 percent of outlay, Rs.1991.43 crores for transport which is 23.09 percent of total outlay.A meager Rs.8.90 crore, 0.10 percent of outlay has been kept for industry and minerals. Rs. 675.61crores (7.83 percent) for rural development, Rs.546.31 crores(6.33 percent) for irrigation and floods, Rs. 7.12 crores (1.13 peercent) for science, technology and environment, Rs.253.08 crore for agriculture sector, 2.94 percent of total outlay, Rs.150.42 (1.74 percent) rores for general economic services and Rs.91.48 crore(1.06 percent) for general services.