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This is an archive article published on February 17, 2009

Plan Budget Estimate for UT down from last year

While the UT Administration had demanded Rs 600 crore in the Plan Budget for Chandigarh this year,the Union Budget has made an allocation of only half the amount in the Plan Budget Estimates for the year 2009-10.

While the UT Administration had demanded Rs 600 crore in the Plan Budget for Chandigarh this year,the Union Budget has made an allocation of only half the amount in the Plan Budget Estimates (BE) for the year 2009-10. The allocated amount of Rs 300.35 crore is less than the BE of 2008-09 that was Rs 304.65 crore.

The non-plan BE has,however,increased from Rs 1,243 crore in 2008-09 to Rs 1,849 crore. Out of this amount,around Rs 500 crore will be spent to pay arrears and salaries to the employees in various sectors once the recommendations of the Fifth Pay Commission are implemented. This is one of the reasons for the increase in the Non-Plan Budget.

Finance Secretary Sanjay Kumar said this year’s Plan BE was aimed at three areas — education,health and housing and urban development.

The collective Plan BE for these three sectors has increased from Rs 205.78 crore in 2008-09 to Rs 222.73 crore. The increase is substantially more in the housing and urban development sector. While there is not much change in the allocation for health,the education sector has received around Rs 8 crore less than last year. The Non-Plan BE in these sectors has also increased from Rs 578.22 crore to Rs 963.35 crore.

Most other sectors have seen a decrease in the allocation in Plan BE. These include police,labour,transport and energy,with an allocation of Rs 3.55 crore,Rs 96 lakh,Rs 8.11 crore and Rs 15 crore,respectively. The allocation for these sectors was Rs 3.75 crore,Rs 1.26 crore,Rs 10.35 crore and Rs 21.50 crore,respectively,last year.

Local MP and Union Minister of State for Finance Pawan Kumar Bansal said: “This is just the interim budget for the next four months based on vote of account. That is why there are no sops offered or fiscal proposals made. It is just to ensure a smooth growth rate. Last year,we had managed a substantial allocation for the city. The same will happen this year too.”

The Non-Plan BE for Secretariat this year is Rs 6.98 crore,police Rs 164.66 crore,labour Rs 11.55 crore,transport Rs 129.16 crore,energy Rs 440.29 crore and others Rs 133. The amount was Rs 4.21 crore for Secretariat,Rs 98.9 crore for police,Rs 7.15 crore for labour,Rs 96.04 crore for transport,Rs 372.02 crore for energy and Rs 86.45 crore for others last year.

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Budget estimates at a glance
* Total Allocation – Rs 2149.35 crore
* Plan Budget – Rs 300.35 crore
* Non-plan Budget – Rs 1,243 crore
* Housing and Urban
* Development – Rs 138.36 crore
* Education – Rs 40.73 crore
* Health – Rs 43.64 crore
* Transport – Rs 8.11 crore
* Police – Rs 3.55 crore
* Energy – Rs 15 crore

WHAT THEY SAY
Harmohan Dhawan,BSP

“It is a disappointing Budget as far as the city is concerned. The local MP is the Union Minister of State for Finance. Yet,he has not been able to get anything substantial for the city. After a disappointing Rail Budget,this is the second setback. The city gives Rs 670 crore a year for the consolidated fund of the Central government. Yet,there are no benefits.”

Satya Pal Jain,BJP
“The allocation in the Plan Budget is less than last year’s. The people of the city are disappointed and disillusioned. Nothing has been done to curb inflation. People are reeling under the burden of increasing prices of commodities. The Congress-led UPA government had ignored the city in the Rail Budget too.”

Ajay Jagga,Janata Party
“The Budget is completely a ‘non-event’. With the general elections round the corner,the Union Budget 2009 was more of a report card of the performance of the UPA government in the last five years. Anything which has a new dimension or new policies or sops will probably come in only after the new government comes in power. For the next two to three months,we are going to have a policy freeze.”

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Diwakar Sahoonja,Chandigarh
Beopar Mandal

“There is no mention of small and medium traders. There is no simplification of the process of taxation. With an eye on the elections,the government seems to have touched the rural sector more. Some changes should have been made in the income tax limits. Small traders are competing with corporates and economic slowdown. But nothing has been done for them.”

Dr Jagwant Singh,GGDSD College
“The Budget is on the expected lines. Since this is an interim Budget,the government could not have offered too many sops. An outgoing government should not indulge in populist measures. This is a Budget for the next three to four months to take care that the economy functions smoothly.”

Naveen Manglani,Chamber of Chandigarh Industries
“The Budget has been completely disappointing for the industry. Pranab Mukherjee did not touch upon the automobile sector,the real estate sector and taxes. In the times of recession,we were expecting some relief in the form of simplification of taxes and reduction in excise duty on automobiles.”

Dilip Chenoy,Director General,SIAM
“The focus on economic revival as reflected in the increase in spending,specifically in infrastructure projects and other social sectors,is a welcome feature of the interim budget. The increased outlay for the JNNURNM projects,Ministry of Defence,Ministry of Surface Transport could be used for funding the vehicle replacement programme and for boosting the purchase of new vehicles.”

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