The Congress government in Punjab that came to power in March presented its maiden budget for 2017-18 here on Tuesday, with a focus on reducing the crushing debt burden and restoring fiscal stability.
Finance Minister Manpreet Singh Badal proposed the budget of Rs 1,18,237.9 crore, with an emphasis on education and social sectors.
He also proposed an outlay of Rs 1,500 crore for waiving the debt of distressed farmers of the state.
For the agriculture sector, the minister proposed to increase allocation by 65.77 per cent to Rs 10,580.99 crore in 2017-18.
“The government faces the daunting challenge of fulfilling its promises to the people of Punjab under extreme budgetary pressures. In the first year, our focus will be two-fold: to gradually reduce the crushing burden of debt...and restore its fiscal health while at the same time taking immediate measures to ensure efficient use of resources already allocated by minimising waste and improving accountability,” he said.
Total outstanding debt of the state as on March 31 was Rs 1,86,618 crore, including informal debt of Rs 4,435 crore, which had been raised by previous state governments through various agencies without approval of the central government, Manpreet told the Assembly.
Revenue expenditure has increased to Rs 62,733.81 crore in 2016-17, from Rs 18,544 crore in 2006-07, a jump of 238 per cent, the minister said further.
During the same period, expenditure on salaries rose to Rs 19,800 crore from Rs 5,783 crore, pension to Rs 8,140 crore from Rs 1,905 crore and interest to Rs 11,982 crore from Rs 4,152 crore.
“Thus, the growing share of salary pension and interest payments in its receipt expenditure prevented the state from achieving revenue surplus,” he explained.
Keeping its pre-poll promise, the government proposed Rs 10 crore in the budget for providing smart mobile phones to the youth.
Stamp duty has been proposed to be slashed to 6 per cent from 9 per cent for registration of properties in urban areas, the state finance minister said.
The outlay of the urban sector has been raised to Rs 4,610.59 crore, from Rs 2,268.18 crore, a raise of 103.27 per cent over the previous year.
This includes programmes of Smart Cities, AMRUT, Punjab Municipal Infrastructure Development Fund and Swachh Bharat Mission.
As Manpreet spoke, SAD-BJP members rushed to the Well of the House demanding complete debt waiver. Former deputy chief minister and SAD president Sukhbir Singh Badal and senior Akali leader Bikram Singh Majithia were also present.
The opposition members also took to sloganeering in support of their demand. At one stage, they tore off papers and hurled them towards the Chair though they fell short of the Speaker’s seat.
The main Opposition, the AAP, staged a walkout on the issue of debt waiver.
On Monday, Chief Minister Amarinder Singh had announced waiver of entire crop loans up to Rs 2 lakh for small and marginal farmers (up to 5 acres), and a flat Rs 2 lakh relief for all other marginal farmers, irrespective of their loan amount.
The Opposition demanded total waiver of agricultural debt, saying this was what the Congress had promised at the time of election in Punjab.
Meanwhile, Manpreet said a fiscal consolidation map for all states was one of the major recommendations of the 14th Finance Commission and the state is required to limit fiscal deficit within 3 per cent of Gross State Domestic Product (GSDP).
“Unfortunately, this has not happened and rather than achieving the target of 3 per cent of GSDP, the fiscal deficit has jumped to 13.89 per cent during 2016-17...,” he added.
He went on to say the current Congress regime had inherited a heavy debt burden from the previous government.
“When this government took over in March, it was welcomed with the additional liability of Rs 29,919.96 crore (as on March 31, 2017) in the form of loans to settle the so-called Cash Credit Limit (CCL) legacy accounts. As a result, the state government shall have to bear an additional Rs 270 crore per month resulting in an annual liability of Rs 3,240 crore for the next 20 years,” he said.
“Further, the government of the day (previous SAD-BJP government) had been forcing agencies like PIDB, RDB, PUDA and others to incur debt on its behalf. Most of the time, this debt was used for purposes beyond the mandate of that agency,” Manpreet pointed out.
FROM SOCRATES TO URDU COUPLETS, MANPREET INVOKES ALL IN BUDGET SPEECH
Punjab Finance Minister Manpreet Singh Badal interspersed poetry, philosophy and economics in his maiden presentation of Budget as a Congress minister to drive home the point that courageous Punjabis would bring the state out of dire financial straits.
Earlier as finance minister of the Shiromani Akali Dal, he had presented three budgets from 2007-2009.
From invoking the famous courage of brave-hearted Punjabis to confront adversity--which in this case is revenue deficit--to quoting Greek philosopher Socrates, his favourite Urdu poet Mohammad Iqbal and Shaheed Bhagat Singh, Manpreet dotted his speech with quotes to state the poor condition of finances and the government’s determination to overcome it.
He said, “In ancient Greece, Socrates had to consume hemlock to shake the Greek people out of their stupor. Nearly a century ago, Shaheed Bhagat Singh kissed martyrdom at a tender age as he wanted to shake the conscience of people. The government of Capt Amarinder Singh finds inspiration in them and the government wants to stir the people of Punjab.”
Using the couplet, ‘Shaq na kar meri sookhi aankhon pe, aansu yun bhi bahaye jaate hein’, he narrated the remorseful fiscal condition, adding that he would not be demoralised.
He quoted Iqbal to explain the tough task ahead, “Pirona ek hee tasbi mein en bikhrey huye daano ka; gar mushkal hai toh is mushkal ko aasan karke chhodunga; dikha dunga jahan ko jo meri aakhon ne dekha hai, tujhe bhee aee surte aaina, hairan kar ke chhodunga.” (Stringing these scattered beads in one rosary is difficult though, surmounting odds I will ease it out; Will show to the world what my eyes have seen; O mirror to my face, I will leave you dazzled too.)
Seeking inspiration and support of his colleagues and guidance of the Chief Minister, he recited another couplet of an unnamed poet.
“Na raha chand sitaron ka main mohtaz kabhi, apni mehnat ke sada maine ujale dekhe; tazkra us ne lakiron ka wahin chhodh diya, jab najumi ne mere hathon ke chhale dekhe.” (I have never been beholden to the stars and the planets, I have always seen the light of my endeavours; The astrologer immediately left analysing the lines on my palm, The moment he saw the blisters on my hands.)
Ending his budget speech with a resolve to improve the state finances, he said, “By dreaming, flowers do not bloom in the desert. Mere hopes do not result in rivers of milk and honey. The road to prosperity is laden with sacrifice and hard work.”
