Punjab Finance Minister Parminder Singh Dhindsa today said the budget for 2016-17 was focused on fiscal consolidation and balancing the needs of different sections of the society.
"We have tried to have fiscal consolidation and we have also tried to balance the needs of different sections of the society and economy," Dhindsa said while addressing reporters after presenting the budget here.
Asked about low percentage of borrowed funds were being spent on capital expenditure as pointed out by government auditor CAG, he said, "This is not something new...We have been doing it since 1992. A few other states are also facing similar problems. But we are working on to improve it and the only way is to improve our revenue."
Punjab government was rapped by the Comptroller and Auditor General of India (CAG) for utilizing major portion of borrowings for servicing old debt and revenue expenditure.
He said that the state's fresh borrowings would be about Rs 13,000 crore while total outstanding debt will reach Rs 1.38 lakh crore for the next fiscal.
Asked anout raising revenue without imposing any tax, he said that he was looking to fund expenses through own tax revenue and devolution of central taxes.
"We have kept own tax revenue growth nominal at 7-8 per cent while there will be 13-14 per cent growth in devolution of central taxes," he said.
He also blamed the diminishing fuel prices and lower vehicle sales for lesser growth in tax revenue.
