Punjab Chief Minister Bhagwant Mann on Tuesday described the state's 2024-25 Budget as a step forward towards carving out 'Rangla Punjab (Vibrant Punjab)' through inclusive, balanced and comprehensive development.

In a statement, Mann said the budget has taken care of all the core sectors, including health and education. He said the proposed outlay will further propel the tempo of the state's overall growth and development, besides ensuring prosperity for all sections of society, especially the poor and the underprivileged.

The state's budget has crossed Rs 2 lakh crore for the first time as the Punjab government has initiated several ''path-breaking initiatives'' for public welfare, the chief minister claimed. Mann said the state's tax revenue was 13 per cent against a compounded annual growth rate of 8 per cent during 2012-17 and 6 per cent during 2017-22.

For the first time, a budgetary outlay of Rs 16,987 crore -- 11.5 per cent of the total expenditure -- has been made for the education sector, Mann claimed. He said Rs 100 crore has been earmarked for 'schools of eminence' while Rs 10 crore set aside for 'schools of brilliance' to give a further fillip to the state's education sector.

Mann added the budget will also bring in far more financial discipline with economic prudence in narrowing the fiscal deficit, with a focus on the enhancement of revenue through resource mobilisation.

''The budget is reflective of pro-people policies of the state government,'' said the chief minister and added that it aims to serve the weakest of the weak and poorest of the poor in earnest.

Opposition parties dub budget as disappointing, visionless

The Opposition, on the other hand,  dubbed the stare’s 2024-25 Budget as “disappointing” and “visionless”, accusing the Bhagwant Mann government of failing to fulfil the ruling AAP’s poll promise of giving women Rs 1,000 per month.

Leader of the Opposition (LoP) in Punjab Assembly Partap Singh Bajwa termed the third budget of the Aam Aadmi Party-led state government “disappointing” and “unconvincing”. Bajwa said that 23 per cent of the total receipts would go towards interest on debts and 57.6 per cent would be spent on salaries and pensions. Similarly, 25.14 per cent will go towards power subsidies, leaving the Punjab government with three per cent to execute other tasks, the Congress leader said.

Slamming the budget “as yet another stab in the back of our farming community”, Punjab BJP president Sunil Jakhar claimed that it has once again failed to address the concerns of farmers on the much-needed issue of crop diversification, groundwater conservation and income support. “It is the third year and it is evident that this government has no solution for farmers, and neither did this government have the gumption to fulfil what Bhagwant Mann had promised to farmers while seeking their votes,” Jakhar said.

Shiromani Akali Dal (SAD) president Sukhbir Singh Badal alleged that the Bhagwant Mann-led AAP government perpetrated fraud on Punjabis by refusing to honour commitments made to different segments of society, “besides discriminating against farmers, youth and trade and industry in the 2024-25 state Budget”. Badal said there was no mention or allocation for the Rs 1,000 per month allowance promised to women which was to start immediately upon the formation of the AAP government two years back.

85% guarantees honoured; others will be met soon: Cheema

PNS/Chandigarh

With the state’s debt projected to soar to Rs 3,53,599 crore by the end of fiscal year 2024-25 at the rate of 44.05 per cent, Cheema underscored the Aam Aadmi Party (AAP) Government’s commitment  to navigate these challenges through prudent financial management and targeted reforms.

“My third budget too is pro-people and does not put any additional burden on the common man....as no new taxes have been imposed,” he said, while emphasizing his efforts to reduce the Revenue Deficit and Fiscal Deficit as a percentage of GSDP.

Cheema, highlighting AAP Government’s commitment in its efforts to fulfill the promises made to the electorate, claimed that 85 percent of the pre-poll guarantees have already been met, including initiatives to bolster education, provide 300 units of power free to households, and enhance healthcare services. However, the absence of the much-anticipated financial assistance of Rs 1,000 for every woman above 18 years of age in the budget drew attention to the state's constrained fiscal position.

In his speech, Cheema outlined key revenue and expenditure projections, offering insights into the government's fiscal roadmap. Anticipating total revenue receipts of Rs 1,03,936 crore in the upcoming fiscal year, he aimed at bolstering the state’s coffers through increased tax revenues and central grants. The emphasis on revenue enhancement comes amidst efforts to streamline tax enforcement mechanisms and bolster excise duties, underscoring the government's commitment to fiscal prudence.

“We are anticipating total revenue receipts of Rs 1,03,936 crore in 2024-25, with own tax revenue contributing Rs 58,900 crore. Additionally, the state will receive Rs 22,041 crore as its share from central taxes and Rs 11,748 crore as Grants in Aid from the Centre,” said Cheema.

Despite the fiscal constraints, Cheema reiterated the Government’s resolve to address the state’s burgeoning debt burden. Efforts to repay outstanding debts from previous administrations remain a priority, with the government emphasizing the importance of financial discipline and transparency in its fiscal management strategies.

“Due to the government's commendable initiatives, our tax collection has seen a positive trend, with ongoing efforts to eliminate tax evasion. Various mafias in Punjab have been eradicated, leading to increased tax compliance,” said Cheema.

Cheema credited the improved revenue generation to new schemes and the establishment of a dedicated Tax Intelligence Unit, emphasizing efforts to address loopholes and combat tax evasion. He highlighted a milestone in excise collection, attributing it to a new excise policy and enhanced transparency. Anticipated revenues include Rs 25,750 crore from GST, Rs 8,550 crore from VAT, and Rs 10,350 crore from state excise.