Chandigarh, February 10
Punjab's political leadership does not want to show any blemishes as it gears up for the Lok Sabha elections. Aiming to be an important part of the National Democratic Alliance (NDA), if they win a majority of the seats in the state, the SAD-BJP Government is not keen on presenting a Budget showcasing its slow revenue growth and high fiscal deficit just ahead of the elections.
While almost all neighbouring states - Himachal Pradesh, Haryana and Uttarakhand - have decided to present their Budgets before the model code of conduct comes into force and take mileage by announcing sops and no new taxes. But Punjab, knowing that there is little room for any sops in its Budget proposal for the next year, and in an effort to ensure that this year's fiscal indicators do not become a poll issue, has decided to go for a vote on account in its session between March 3 and 10. The state's Budget will now be presented after the new government takes over at the Centre.
A close look at the state's fiscal performance till date reveals that though as of now Punjab's revenue receipts are up by almost 13.7 per cent and its revenue deficit is down by more than 35 per cent over last year, this would change once the state pays salary arrears and 8 per cent DA to its employees.
As of January 31, Punjab's revenue receipts were Rs 27,490 crore as compared to Rs 24,160 crore as on January 31, 2013. The revenue deficit this year (till January 31) is Rs 3,160 crore as compared to Rs 4,860 crore in January last year. The fiscal deficit too has shown a decline from Rs 6,100 crore last year to Rs 4,860 crore now. Though these figures are quite encouraging, the state still has a liability of Rs 1,800 crore to Rs 2,000 crore in the form of payment of arrears of salary and DA.
The state has already borrowed Rs 8,800 crore through auction of its state development loans. With just a month left for the financial year to end, the state can borrow just Rs 600 crore in March. This means that the state will have a high revenue deficit than its target of Rs 1,741 crore. This also means that the state will have no room for offering sops in the next financial year - a major reason why the government is not willing to table its Budget and give ready meat to the Opposition.
Cover-up act
* The ruling alliance does not want to present a Budget that showcases its slow revenue growth and high fiscal deficit
* The state has a liability of Rs 1,800 crore to Rs 2,000 crore in the form of salary arrears and DA to its employees
* It has already borrowed Rs 8,800 crore through auction of its development loansRs 600 crore in March
* This will leave the state with a high revenue deficit
* This also means that the state will have no room for offering sops in the next financial year
Punjab's political leadership does not want to show any blemishes as it gears up for the Lok Sabha elections. Aiming to be an important part of the National Democratic Alliance (NDA), if they win a majority of the seats in the state, the SAD-BJP Government is not keen on presenting a Budget showcasing its slow revenue growth and high fiscal deficit just ahead of the elections.
While almost all neighbouring states - Himachal Pradesh, Haryana and Uttarakhand - have decided to present their Budgets before the model code of conduct comes into force and take mileage by announcing sops and no new taxes. But Punjab, knowing that there is little room for any sops in its Budget proposal for the next year, and in an effort to ensure that this year's fiscal indicators do not become a poll issue, has decided to go for a vote on account in its session between March 3 and 10. The state's Budget will now be presented after the new government takes over at the Centre.
A close look at the state's fiscal performance till date reveals that though as of now Punjab's revenue receipts are up by almost 13.7 per cent and its revenue deficit is down by more than 35 per cent over last year, this would change once the state pays salary arrears and 8 per cent DA to its employees.
As of January 31, Punjab's revenue receipts were Rs 27,490 crore as compared to Rs 24,160 crore as on January 31, 2013. The revenue deficit this year (till January 31) is Rs 3,160 crore as compared to Rs 4,860 crore in January last year. The fiscal deficit too has shown a decline from Rs 6,100 crore last year to Rs 4,860 crore now. Though these figures are quite encouraging, the state still has a liability of Rs 1,800 crore to Rs 2,000 crore in the form of payment of arrears of salary and DA.
The state has already borrowed Rs 8,800 crore through auction of its state development loans. With just a month left for the financial year to end, the state can borrow just Rs 600 crore in March. This means that the state will have a high revenue deficit than its target of Rs 1,741 crore. This also means that the state will have no room for offering sops in the next financial year - a major reason why the government is not willing to table its Budget and give ready meat to the Opposition.
Cover-up act
* The ruling alliance does not want to present a Budget that showcases its slow revenue growth and high fiscal deficit
* The state has a liability of Rs 1,800 crore to Rs 2,000 crore in the form of salary arrears and DA to its employees
* It has already borrowed Rs 8,800 crore through auction of its development loansRs 600 crore in March
* This will leave the state with a high revenue deficit
* This also means that the state will have no room for offering sops in the next financial year
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