Presenting the Budget in the Punjab Assembly on Tuesday, finance minister Manpreet Singh Badal announced that implementation of the fifth state pay commission recommendations would put an additional burden of about Rs 3,000 crore on the state. However, the government would not release arrears to employees. On the brighter side, the Budget held no new taxes.
The total size of the budget is Rs 40,262.15 crore, which includes revenue expenditure of Rs 30,306. 26 crore, capital expenditure of Rs 3,550.15 crore and public debt repayment of Rs 6,362.62 crore. The plan expenditure during 2008-09 was Rs 6,925 crore against an outlay of Rs 6,210 crore, which is more than 111%. The outlay for annual plan 2009-10 is Rs 8,625 crore, 39% higher than last year’s approved outlay.
At Rs 2,593 crore, the proposed outlay for energy forms 30% of the plan. The social services sector with 26% of the plan outlay is next. The economy of Punjab grew at an average growth rate of 5.13% against the national average of 7.8% during the 10th Plan (2002-2007). Revenue deficit for 2009-10 is expected at Rs 4,234 crore. The fiscal deficit for 2008-09 is expected at Rs 6,856 crore (4.46% of GSDP) as per revised estimates and for 2009-10 at Rs 7,660 crore (4.50% at GSDP) as per budget estimates. The total outstanding debt at the end of 2008-09 is likely at Rs 57,736 crore (37.60% of GSDP) and at the end of 2009-10 at Rs 63,217 crore. Agriculture gets Rs 135 crore, animal husbandry and dairy development sector gets Rs 55 crore and Rs 10 crore has been allocated for Punjab Dairy Development Board. Rs 546 crore has been kept for irrigation.