Punjab Budget (2014-15) negative, says FASII
Author(s): City Air NewsFASII national president, Badish Jindal. Ludhiana, July 16, 2014: Reacting to Punjab Budget (2014-15) the Federation of Associations of Small Industries of India (FASII) national president Badish Jindal has said...
Ludhiana, July 16, 2014: Reacting to Punjab Budget (2014-15) the Federation of Associations of Small Industries of India (FASII) national president Badish Jindal has said the Punjab Budget 2014-15 is one of the worst “negative budgets” in the history of Punjab, with a fiscal deficit of Rs.10372 crores as compared to Rs.8189 crores for the years 2013-14.
In a statement here today, he added the industry was expecting for tax reforms, abolition of duty from electricity, abolition of External Development Charges, grant for Industrial infrastructure, capital subsidy and freight subsidy from the Budget, But the Finance Minister shown no concern or sympathy for the dying industry of Punjab.
One more Blunder for Industry & Mining in Punjab is that in the Budget of Industry and Minerals the Government approved the Budget of 285.21 crores (35.21 Crores for the Rural & Small Industries & 250 Crores for providing loans for setting us small power projects to the tune of 250 Crores) but the revised this Budget to merely 10 crores which was the 0.08% of the total Budget for that year.
“Whereas in 2013-14 Rs.909 crores were allocated to agriculture and allied activities, Rs.1513 crores to the Rural Development and Rs.195 crores to the General Economic services in 2014-15 also the Government allocated merely 15 crores to the Industry and Minerals which is again 0.08% of the total Budget outlay, That also kept reserved for the rural and small Industries capital investment.”
Whereas budget to the agriculture and allied services is Rs.1277 crores, Rural Development 1953 Crores, Irrigation and flood control 1284 Crores. 2670 Crores to the transport and 888.66 Crores to the General Economic services.
So this budgeting of merely 0.08% to the Industry shows the attitude of the State Government toeards this sector.
He said Punjab is going towards a dead end which is proved in its Budget:
The State loan have increased to 113052 Crores from 101969 crores of last year which is almost double of its state budget size,
The most of Budget is spent as non plan expenditure which is 9.05% on power subsidy that is 5300 crores , 14.30% (8380Cr)on interest payments, 33.71% (15841+6886 allowances) on salary and wages, 15.07% on revenue expenditure , 5.32% on repayment of Loans.
The power Subsidy budget to the Agriculture increased from 4815 Crores to 5300 Crores from last year, which is uncalled for.
The income from VAT has given a target from 16749 Crores to 17760 crores, whereas nothing said about VAT refunds which are laying pending since years.
Just to make the adjustment is Budget the Central Grants of 8230 Crore shown as the part of State Budget.
So overall this budget is an anti growth budget prepared just to please the villages and agriculture sector.