Govt’s Budget estimates changed drastically in just one month

Rs 500 crore every year.”

And it has been possible by some deft jugglery of figures — optimistic projection of both budgetary and extra-budgetary resources and adopting a conservative outlook on expenses. So,while in the May presentation,the revenue expenditure was projected at Rs 45,763 crore,the Budget within a month has been able to downsize it to Rs 41,166 crore. Of this,pension and retirement benefits have fallen by over Rs 700 crore — from Rs 5,500 crore projected in May to Rs 4753 crore in June and interest payments from Rs 7,120 crore to Rs 6,662 crore. So,while the total committed expenditure (salaries,pension,interest payments,power subsidy) had last year jumped to 110 per cent of revenue receipts,this year,Punjab expects these to fall by 30 per cent to 80.4 per cent.

Also,the May presentation showed Rs 1,580 crore from additional resource mobilisation measures,something which finds no mention in the Budget. Punjab has figured in Rs 2,200 crore from extra-budgetary resources against nil contribution in the annual plan outlay from these heads in the previous years. So,local development authorities such as PUDA,GMADA,GLADA and urban and rural bodies will generate Rs 2,200 crore to fund the state’s share of Rs 6,244 crore towards the plan. Taken together with central assistance of Rs 1,725 crore,net borrowing of Rs 9,586 crore and Rs 1,580 crore from additional resource mobilisation,does the annual plan figure arrive at Rs 14,000 crore.

Interestingly,at a time when all surveys are projecting a grim economic outlook and even turbocharged states like Haryana have downsized their revenue collections,Punjab Budget bets on economic recovery. The state expects to mop up 22 per cent more revenue this year against last year when the economy was doing better,yet its collections had seen a growth of only 12 per cent against the projected 16 per cent in the Budget estimates.

The state expects its VAT collections to grow by 19 per cent this year to Rs 14,213 crore and excise by Rs 550 crore to touch Rs 3,800 crore. Its estimates on stamps and registration is also an optimistic Rs 3,375 crore against Rs 2,900 crore last year.