Expecting Rs 4,000 cr from Sukhbir-Kalia report,finance commission: Manpreet
Though not in the loop on the likely recommendations of the two-member committee on resource mobilisation even as the budgetary exercise is on in full swing...
Budget ’10-11: Report on resource mobilisation by next week: Kalia
Though not in the loop on the likely recommendations of the two-member committee on resource mobilisation even as the budgetary exercise is on in full swing,the state finance department has decided to factor in the likely revenue inflow from the report’s proposals in its annual plan estimates to be discussed with the Planning Commission. The department will cite a figure of Rs 4,000 crore as additional resources that may be mobilised following the recommendations of the committee and the 13th Finance Commission. The meeting with Planning Commission is scheduled for January 19.
The two-member committee comprises Deputy Chief Minister Sukhbir Badal and Industries Minister Manoranjan Kalia. There has been considerable delay in the submission of its report. But Finance Minister Manpreet Badal said “better late than never”. “However,since tax proposals may also require necessary legislation or notification,the sooner it is out the better,” he added.
Kalia,when contacted,said the FM would not have to wait for long. “We have recommended proposals for resource mobilisation and the report will be submitted next week,” Kalia said. Since several states,including Delhi,have hiked value added tax (VAT) rate from four to five per cent across the board,it is also likely to be one of the proposals of the Sukhbir-Kalia committee.
The cash-strapped department is also waiting to know what the 13th Finance Commission has to offer for Punjab. The Commission,headed by Vijay Kelkar,has called for greater devolution of funds for states in Central taxes. However,Punjab is also hoping that it would share the burden of revised pay scales — a unanimous demand of all states — besides providing relief to the state from its growing debt burden.
“More than the revenue deficit grant that the 13th Finance Commission is likely to give us,I am hoping for restructuring of our debt. The debt burden of the state is a legacy of the days of terrorism and has kept growing ever since. We have requested the commission to provide relief to the state either through restructuring of debt,writing off a part of it or charging a lower rate of interest,” he added.
In addition to state’s own resources,the annual plan size depends on development expenditure of Punjab State Electricity Board (PSEB),Punjab State Infrastructure Development Board (PIDB) and Rural Development Fund (RDF).
While the contribution of PSEB is likely to be around last year’s — the board mainly spends on sprucing up transmission infrastructure — that of PIDB has gone down. The RDF collected from foodgrains has gone up from Rs 573 crore in 2008-09 to Rs 635 crore this year. “We have been taking the annual plan size up since the last three years. Though in view of the pay panel burden,it may be lower for 2010-11,the final figure will depend on what the state is able to get through the resource-mobilisation committee report and 13th Finance Commission recommendations,” Badal said.
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