Punjab Government on Tuesday virtually promised moon to the people without lifting its feet from the ground.
Pinning its hope on the GST (Goods and Services Tax), the State Finance Minister, Manpreet Badal, made an array of announcements covering all sectors fulfilling Congress’ pre-poll promises without adequate plans for generating resources while presenting Rs 1.18 lakh (1,18,237.90) crore budget proposals before the Vidhan Sabha.
In a tax-free and populist budget primarily focussed on education and social security, Manpreet allocates Rs 1500 crore for farm debt waiver “enough for first instalment”, Rs 10 crore for smart phones for youth, various employment generation schemes for youth, enhancing financial assistance under social welfare schemes, among other significant steps.
Manpreet, in the Congress Government’s maiden budget, listed Rs 1.95 lakh (1,95,002.05) crore outstanding debt by the end of the current fiscal year, that is 2017-18, including informal debt of Rs 4,435 crore, which have been raised by previous State Governments through various agencies without approval of the Central Government.
laying bare the slumping fiscal positions, Manpreet pegged the Fiscal Deficit for 2017-18 at 4.96 per cent of GSDP, Rs 23,092.10 core, which “is beyond the limit of three percent set in the FRBM (Fiscal Responsibility and Budget Management) Act, 2003”.
Manpreet said, “We have not been able to contain the fiscal deficit at three per cent of GSDP mainly due to the additional debt servicing liability and the dilapidated finances that we have inherited.”
He pegged revenue deficit at Rs 14,784.87 — 3.18 percent of GSDP (Gross State Domestic Product).
Presenting the budget proposals, Manpreet said that the total budget size for 2017-18 is Rs 1,18,237.90 crore which also includes Rs 27,500 crore towards ways and means of transactions for current fiscal, and its effective size was is Rs 90,737.90 crore.
Total receipts are likely to be Rs 1,05,514.84 crore, he said adding that the revenue expenditure has increased by a whopping 238 percent to Rs 62,733.81 crore in 2016-17, from Rs 18,544 crore in 2006-07.
During the same period, expenditure on salaries rose to Rs 19,800 crore from Rs 5,783 crore, pension to Rs 8,140 crore from Rs 1,905 crore and interest to Rs 11,982 crore from Rs 4,152 crore, he said clarifying that the growing share of salary pension and interest payments in its receipt expenditure prevented the State from achieving revenue surplus.
Manpreet, pointing at the “extreme budgetary pressures”, maintained that the government’s focus for the first year would be to “gradually reduce crushing burden of debt that the State is under and to restore its fiscal health”, besides “taking immediate measures to ensure efficient use of resources already allocated by minimizing waste and improving accountability”.
A day after Chief Minister Capt Amarinder Singh announced much-awaited farm loan waiver, Manpreet proposed an outlay of Rs 1,500 crore “for waiving the debt of distressed farmers”.
Admitting that Rs 1,500 crore would not be enough to waive the entire farm debt of the state’s farmers, Manpreet, while talking with the media, clarified that the amount would be “enough for the first instalments to the banks”.
“The Government would take over the entire loans of the farmers, be it PSUs or commercial banks including co-operative banks. We would give them sovereign guarantee. Farmers would get rid of the debt and it would be between the Government and the banks,” he added.
Underlining the need to ensure “farmers’ prosperity” besides “enhancing productivity”, Manpreet announced Rs 10,580.99 crore budget allocation for the agriculture sector — 65.77 per cent higher than the previous year.
Finance Minister also announced Rs 5 crore for Harra (Green) Tractor Scheme wherein 25,000 tractors alongwith other agriculture implements would be given at subsidized rates to the unemployed youth to enable them to start their own ventures for agriculture services.
Manpreet made the provision of Rs 180 crore against loan to Sugar Cooperatives for payment to cane growers, besides announcing prohibition of kurki by enacting new legislation, to establish Punjab State Agricultural Insurance Corporation, enhancing compensation for crop loss from Rs 8,000 to Rs 12,000 per acre.
He also announced to give emphasis to organic farming — by setting up one demonstration plot in each block, and horticulture — by establishing Punjab State Horticulture Marketing Board to give desired focus.
Fulfilling its another key poll promise, Congress government set aside Rs 10 crore to provide “smart” mobile phones to the State’s youth in the current year.
Focussing primarily on education sector, Manpreet announced Rs 21 crore to provide furniture to all Government primary schools, Rs 10 crore to provide computer to Government primary schools, Rs 5.25 crore to provide green boards in Government primary schools, and Rs 30 crore for free books to general category students of Class IX and X, and all students of Class XI and XII.
To encourage schools and students, the government announced Rs 4.32 crore to reward “best Government primary school in each block” with Rs 2 lakh per block, Rs 1.10 crore to award “best government middle school in each district” with Rs 5 lakh per district, Rs 1.65 crore for awarding “best government high school in each district” with Rs 7.5 lakh per district, and Rs 2.20 crore for award for “best Government senior secondary school in each district” with Rs 10 lakh per district.
Manpreet also announced enhancing grant to Chandigarh’s Panjab University, which is reeling under financial crisis, from Rs 26 crore to Rs 33 crore in 2017-18, free internet connectivity in all 48 Government colleges, setting up five new Degree colleges, and establishing Central Institute from promotion and Development of Punjabi language at Talwandi Sabo.
For the health sector, Manpreet allocated Rs 1,358 crore including Rs 42.42 crore for Bal Swasthya Karyakaram under which screening of all children from birth to 18 years will be done for 30 diseases, and the Government would provide “free of cost” treatment in Government and empanelled private hospitals if any child is identified suffering from any disease.
Manpreet announced new Medical College at Mohali, setting up of 200 ‘Health and Wellness Clinics’ this year, new “re-structured” Universal Health Insurance Scheme covering tertiary care treatment also, setting up tertiary care centres for cancer patients at Fazilka and Hoshiarpur, among others.
Under employment generation, the Government announced Rs 91 crore budget including three new programmes under Shaheed Bhagat Singh Rozgar Sirjan Yojna. Apni Gadi Apna Rozgar — creating three lakh jobs for next five years by tying-up with international operators like Ola, Uber; Hara (Green) Tractor Scheme—to provide tractors and agri-implements to 25,000 youth for self-employment; and Yaari Enterprises — creating one lakh jobs by providing necessary assistance to individual or a group to start any enterprise.
Manpreet also announced to set up Rozgar Atey Karobar Bureaus in every district, an Employment Commission under Chief Minister’s chairmanship to review and monitor employment generation schemes.
In another major announcement, Manpreet proposed reducing stamp duty to six percent from nine per cent for registration of properties in the urban areas “till March 31, 2018, and will be reviewed thereafter based on its impact on the sector”.
Fulfilling another major pre-poll promise, Manpreet announced enhancing financial assistance under Aashirwad scheme, earlier Shagun to Rs 21,000 from Rs 15,000, and pension to 14.50 lakh old aged persons, 1.70 lakh dependent children, 1.90 lakh disabled persons, and 3.80 lakh widows and destitute women to Rs 750 from Rs 500.
Benefitting 10,540 chowkidars, he also announced increasing their honorarium to Rs 1250 per month.
It also announced Rs 8,000 monthly for acid attack victims, waving of existing Rs 17.66 crore and Rs 2.44 crore loans to Punjab SC Finance Corporation and BACKFINCO.
Manpreet also announced to set up General Sham Singh Attariwala Armed Forces Preparatory Institute at Amritsar, new scheme to provide Rs 1 lakh to schools or colleges whose student qualify for joining National Defence Academy, and the University for Sports Promotion at Patiala.
“To fulfil our party’s another major poll promise of providing housing for all, initial provision of Rs 25 crore has been made for it in urban areas, and another Rs 25 crore has been allocated for providing houses for houseless rural poor,” he said.
The outlay of the urban sector has been raised to Rs 4,610.59 crore, from Rs 2,268.18 crore, a raise of 103.27 per cent over the previous year including the programmes of Smart Cities, AMRUT, Punjab Municipal Infrastructure Development Fund and Swachh Bharat Mission.
Manpreet announced organising Heritage Festivals, multi-disciplinary project on Holy Bein river, while setting aside Rs 5 crore for public relation activities to promote tourism.