Punjab Budget has apparently left both the ruling combine and Opposition parties asking for more. After State Finance Minister Parminder Singh Dhindsa presented the Budget proposals, both the ruling and the Opposition members on Friday came out with a slew of suggestions, including Centre’s intervention for debt waiver and special industrial package for the State.
Suggesting the State Government to improve the State’s poor fiscal situation and other schemes during the discussion on the budget proposals, the legislators recommended that appropriate MSP should be ensured for the basmati farmers, besides timely payment of VAT refunds to the traders, among other things.
Even as per the tradition, the Opposition MlAs described the State budget as “bogus” and “fraud” accusing the SAD-BJP government of pushing the state into a debt trap with “burgeoning” borrowings to repay the past debt, the members from the treasury benches patted the state government’s back for taking number of development and social welfare measures and improving the state’s fiscal position.
Initiating the debate, former finance minister and Congress MlA lal Singh took a dig at the state government for not being able to get a financial package from the BJP-led NDA dispensation at the Centre to bail out Punjab from “financial woes”. Stating that the state was “stuck in a debt trap”, Singh pointed that the state’s debt level, during the eight-year rule of the SAD-BJP, had increased alarmingly by about Rs 61,800 crore to Rs 1,13,053 crore for 2014-15.
Singh, maintaining that the state government had not fulfilled its poll promises including giving free tablets to students, demanded cancellation of recognition of parties which fail to honour 75 per cent of election promises. He also quoted figures to indicate at the “feeble” fiscal situation of state-owned corporations and boards. A total of 47 corporations had combined outstanding debt of Rs 67,806 crore till last fiscal, he said and alleged the state government was responsible for their “precarious” financial position.
“Among several corporations and boards, the Punjab State Power Corporation owed Rs 11,342 crore, Pungrain Rs 9,485 crore, Markfed Rs 12,200 crore, PIDB 1,655 crore and PUDA Rs 1,980 crore,” Singh said.Underlining the need for a financial package for the state, Singh said “we were expecting debt relief in the Union budget for Punjab. But, we did not find mention of it at all…You might be having hope from Union Finance Minister Arun Jaitley. But you will not get any relief. No one will give Punjab as much as former Prime Minister Manmohan Singh had done for the state”.
Punjab BJP asked the state government to speed up tax refunds and take proactive steps to protect the existing industry in the state. Participating in the debate, former minister and BJP MlA Manoranjan Kalia stressed on the need of streamlining the Value Added Tax (VAT) refunds to the industry community. He added that the state industry should be provided level playing field to remain viable.
“As we have been able to attract investment of Rs 65,000 crore, the state government should also take care of existing industry in the state,” he said. Kalia also suggested that the state government should grow alternative crops on the basis of soil testing in different parts of the state in order to push crop diversification in the wake of stagnancy in state’s agriculture sector.
Congress MlA Rana Gurjit Singh, speaking on the budget, asked the State Government to speed up VAT refunds, saying getting tax refunds was a complicated task. Taking a dig at state’s crop diversification plan, he said that state government failed to meet acreage target under maize with farmers complaining of not getting remunerative prices for the crop.
“Maize growers in Punjab faced heavy losses as they fetched just Rs 700-800 per quintal as against expected price of Rs 1,300 per quintal. State government should take up the matter with Centre to ensure assured procurement of maize by FCI as being done currently in paddy and wheat crops for central pool,” he added.