Punjab budget shuns taxes,eyes growth

With an eye on assembly polls scheduled next year,the SAD-BJP led govt steered clear of taxes.

With an eye on assembly polls scheduled next year,the SAD-BJP led government today put up a tax-free Rs 48,594.85 crore-budget for 2011-12 while relying on buoyancy in the local economy to fill up the state coffers.

It also announced proposals like free bicycle for girls,extending free healthcare facilities to backward classes and lowering the qualifying age of pension for women as sops to woo the masses.

“This is a budget for ‘aam admi’ as no new taxes are being proposed. The increased resources shall become available on account of buoyancy in economy in the state and better tax administration,” Finance Minister Upinderjit Kaur said after presenting the budget in the assembly.

Further,she pegged the Punjab revenue deficit at 1.33 per cent of Gross State Domestic Product(GSDP) at Rs 3,378.99 crore and fiscal deficit at 3.45 per cent of GSDP at Rs 8,801.33 crore.

The minister said that though the revenue deficit and fiscal deficit were within the parameters of 13th Finance Commission,the deficit would come down on the back of increasing revenue triggered by buoyancy in the economy.

The total size of the budget is kept at Rs 48,594.85 crore while revenue receipts and revenue expenditure are proposed at Rs 32,026.76 crore and 35,405.75 crore,respectively.

Announcing an annual plan of Rs 11,500 crore,considered the highest for the state,Kaur allotted the chunk of the fund (30.94 per cent) for education,health,welfare and social security sector,followed by the power sector,which cornered 28.80 per cent share at Rs 3,311.66 crore.

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Further,presenting a grim picture of the state’s finances,the minister in her about two-hour long speech projected the state debt to go up to Rs 77,585 crore in 2011-12 compared to the estimated debt of Rs 69,549 crore in 2010-11.

Admitting that the state was facing huge debt liability,Kaur attributed the rise in increasing debt to less share of state in central taxes and rise in salary and wages expenditure.

While recognising that remote location of high schools and senior secondary schools from villages were strong disincentives for girl students,the minister announced a new scheme called ‘Mai Bhago Vidya’ Scheme with an outlay of Rs 75 crore to provide free bicycles to all girls studying in class 11 and class 12 of government schools.

Further,the Minister earmarked a sum of Rs 26 crore to ensure no fee would be charged for girl students up till class 12.

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Kaur also announced extension of free health care facilities to families of backward classes and economically weaker sections where family income was below Rs 30,000 per annum. The scheme is likely to 14 lakh families in the state.

The shagun scheme of Rs 15,000 has also been extended to backward classes and other economically weaker families with income of Rs 30,000 per annum for which a sum of Rs 130 crore has been earmarked in the budget.

Another new scheme called ‘Bebe Nanki Ladli Beti Kalyan’ Scheme was announced today to provide benefit of Rs 15,000 at the birth of a girl child.

“This amount will be invested in LIC and enhanced payments will be made to girl at various stages. A budgetary allocation of Rs 16.50 crore is being made,” Kaur said in her speech.

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The minister also announced increase in freedom fighters’ pension from Rs 4,250 to Rs 5,000 per month and lowered the qualifying age limit for women pensioners to 58 years from 60 years.

To further encourage institutional deliveries aimed at improving the sex ratio,the minister announced another new scheme called ‘Mata Kaushalaya Kalyan’ with an outlay of Rs 12 crore to provide cash incentive of Rs 1,000 to mothers who delivered at government hospitals.