Punjab budget 2016-17 just a showoff budget: FOPSIA

Ludhiana, March 15, 2016: Federation Of Punjab Small Industries Associations (FOPSIA) president Badish Jindal has said the Punjab Government’s Punjab budget 2016-17 is just a showoff budget having major portion of Central Government Schemes.
There is nothing for the Industry in Budget and on the other hand the allocation of 10crores for the upcoming suicides in agriculture sector shown the true face of this sector too.
Most of the expenditure is on subsidies and grants instead of development or employment generation which in long term may put the state in deep trouble.
The Bicycle, Auto Parts, Hand tools, Fastener, Sewing Machine Industry was expecting a huge decrease in VAT rates as committed by Deputy Chief minister but beside cotton and yarn(from 6.05% to 3.63%) all sectors were ignored by the Government.
The CLU/EDC rates are reduced for the housing sector by fully ignoring the industry. The industry was demanding this for years.
No budget kept for the upliftment of industrial focal points those are in worst shape.
The Government has increased its revenue targets by around 11% from 45603Crores to 50181Crores which seems to be impossible under present recession period.
The Budget shown the clear picture of new investment boasts of the state government as finance minister announced that “the investment department is just working on the proposals of 292 projects worth Rs 19114 crores” whereas the government was claiming that 65000 crore investment had already came in the state.
The States GDP ratio is 5.96% which is much below 7.2% GDP of India.
No provision of subsidy kept for power subsidy to the new units as government announced to supply them power @4.99 per unit for 5 years. This means that the existing industry will be forced to bear the additional expenditure .whereas the existing industry was demanding the parity in power with the new industry.
Nil tax on new food projects started after 28/10/15 will surely affect the growth of the existing food product industry.
Merely 10 crores allocated for 3 working women hostel with Child Care facility which seems to be irrational.
The government announced to provide merely 16.90 crores to Sahenewal Airport for making it fully operational for domestic flights which seem too low for such project.
Education loan of 5 Lac is also available for tax payer’s category instead of the desired candidates .
The Governments following statement is showing the true face of the state economy “Rural debt in Punjab, estimated to be 35,000 crore, has assumed alarming proportions.The number of indebted farm households in Punjab is 66%, i.e. third highest in the country after Andhra Pradesh and Tamil Nadu. The state has increased the compensation in case of suicide by farmer and farm labourers from 2 lacs to 3 lacs. During 2015-16, 2.17 crore have been disbursed to provide succour to the affected families. The state government is preparing a data bank on suicides to assess the magnitude of problem. The state has provided 10 crore during 2016-17 for compensation to the affected families”.
As the industrial NPA is increasing day by day the government will have to keep the provision for Industrial Suicide fund in the next year’s budget.
So from industry we declare this budget as just negative growth oriented and directionless.