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Having faced criticism over implementation of property tax from various quarters in last financial year, which harmed the electoral prospects of the Shiromani Akali Dal (SAD) and Bhartiya Janata Party (BJP) candidates in the Lok Sabha polls, it seems that the ruling SAD-BJP government in Punjab is in no mood to take further risk.
Despite cash crunch, the Punjab Finance Minister, Parminder Singh Dhindsa (pictured) on Wednesday proposed no new taxes in the state Budget 2014-15
Instead, the finance minister expects buoyancy in the state tax revenues in the current financial year. Growth for the tax revenues is pegged at 18.28 per cent as compared to the 6.60 per cent of last year.
Presenting the Budget, the finance minister said, "During 2012-13, the state's tax revenue stood at Rs 22,588 crore with growth rate of 19.89 per cent over the previous year. For 2013-14 (pre actuals), the state's own tax revenue was estimated at Rs 24,079 crore with growth rate of 6.60 per cent. For 2014-15 (Budget estimate), the state's own tax revenue is estimated at Rs 28,480 crore with growth rate of 18.28 per cent."
Talking to the Business Standard on the sidelines of Assembly session, Dhindsa said, "Last year, due to slowdown, there has been a single-digit growth in tax collections. But in the current financial year, I am sure we would be able to register a growth rate of 18.28 per cent. We are expecting growth in revenues from VAT, state excise, stamps & registration duty, taxes on vehicles, electricity duty etc. In addition to this, we are expecting Rs 300 crore from centre as central sales tax (CST) compensation for last two years."
Talking about revenue deficit, Dhindsa said,"The revenue deficit for 2013-14 (revised estimates) was Rs 5259.06 crore, 1.66 per cent of Gross State Domestic Product (GSDP) as against the target of 0.6 per cent. The state government is aware of the importance of achieving revenue balance for the fiscal health of the state. But due to high level of outstanding debt (Rs 1,01,970 crore as on March 31, 2014) the state has not been able to fully achieve revenue deficit target set out in the fiscal consolidation path recommended by the 13th finance commission and state Fiscal Responsibility and Budget Management (FRBM) Act so far."
The revenue deficit for the current financial is Rs 4252.63 crore.
