Punjab Finance Minister Harpal Singh Cheema on Tuesday presented the Aam Aadmi Party (AAP) government’s budget proposal for the year 2024-25 with a total outlay of ₹2,04,918 crore, focusing on education, health and agriculture.
The budget proposal was presented in the State Assembly here during the ongoing session. “I propose a total Budget expenditure of ₹2,04,918 crore for FY 2024-25. The effective revenue deficit and fiscal deficit are expected to be 2.77% and 3.80%, respectively and have improved from the previous figure of 3.13% and 4.12%, respectively,” said Mr. Cheema. He added Punjab is growing at a rate of 9.41% in the current year and the Gross State Domestic Product (GSDP) stands at ₹7,36,423 crore. The GSDP is estimated to grow at 9% to Rs 8,02,701 crore in FY 2024-25.
Centre apathetic
Taking a dig at the Bharatiya Janata Party (BJP) government at the Centre, Mr. Cheema said it was his responsibility to apprise the House about the apathy displayed by the Union Government towards Punjab. “Withholding of the rightful share of the State, totaling ₹8,000 crore approximately, on account of National Health Mission (NHM), Rural Development Fund (RDF), Mandi Development Fund (MDF), and Special Assistance to State for Capital Investment has directly affected developmental works and placed an additional burden on the State treasury,” he said.
According to budget estimates, the effective outstanding debt for FY 2024-25 is likely to be ₹3,53,599.90 crore. This was ₹3,23,134.98 crore in FY 2023-24 (revised estimates). The effective outstanding debt to GSDP is estimated to be 44.05% for FY 2024-25. The Punjab government paid ₹22,500 crore as interest on the debt during FY 2023-24, which is expected to increase to ₹23,900 crore in FY 2024-25 .
Reacting to the budget, Opposition parties hit out at the AAP government. BJP national spokesperson Jaiveer Shergill said the budget lacked vision, and was a hollow betrayal of Punjabis. He said that no steps have been taken in the budget to revive the State economy that was put in reverse gear by the AAP. “Today’s budget has shattered the hopes of different sectors in the State,” he said.
Rudderless budget
Outside the House, the Punjab Congress president Amarinder Singh Raja Warring described the budget as “rudderless”, and added that on average the AAP is borrowing ₹30,000 crore annually. The government failed to explore additional revenue sources, he said.
Shiromani Akali Dal (SAD) president Sukhbir Singh Badal said: “the government has perpetrated a fraud on Punjabis in the State budget with no allocation for the ₹1,000 per month allowance promised to women two years back. Similarly, the govt has not allocated any money for implementation of the Old Pension Scheme despite having notified it a year ago.”
