Better tax management, resource mobilisation proposed by the FM
Presenting a revenue deficit Budget, Punjab Finance Minister Parminder Singh Dhindsa proposed to generate Rs 2,000-2,500 crore by taking steps for additional resource mobilisation, cutting down unproductive expenditure, implementing other austerity measures, better tax administration and tax compliance among a host of other measures. Besides that, measures at rationalising some taxes and levies would also be taken, he added.
He also hinted out at increasing the ambit of taxes in the forthcoming meeting of the Cabinet.
He presented a revenue deficit of Rs 323.31 (Budget estimate) for 2012-13 as against revised estimates of Rs 5,584.38 crore (revised estimates) for the year 2011-12. Speaking to Business Standard, he said "The Annual Plan of Rs 14,000 for the current financial year would require additional resources of at least Rs 2,000 crore. We propose to generate this by cutting down expenditure, better tax administration and through other austerity measures. We are also planning to take step to mobilise additional resources which may include imposing of new taxes like imposing license fee of Rs 1 lakh per annum on mobile towers. All the decision related to mobilisation of additional resources will be taken in the forthcoming Cabinet meeting and a final decision will be taken after taking into confidence the SAD-BJP alliance." Also, implementing austerity measures would result in annual saving of Rs 250 crore.
The austerity measures proposed by him includes ban on purchase of new vehicles, 10 per cent voluntary cut in allowance of ministers and Chief Parliamentary secretaries, 10 per cent cut on fuel and cut in maintenance and repair expenses of government vehicles, postponement of leave travel concessions for one year, except for employees who are retiring this year.It is worth mentioning that the revenue deficit has always been a problem area for the state of Punjab.
The rising salary bill, financial assistance to Electricity Board (now Power Corporation) and interest payments have contributed to increase in revenue expenditure over the years.
