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No fresh taxes in Punjab Budget
MLAs to have funds at disposal
Sarbjit Dhaliwal
Tribune News Service

Chandigarh, March 7
With an eye on the coming Assembly elections in Punjab, the Finance Minister, Mr Surinder Singla, today presented a tax free Budget having a total outlay of Rs 27,791.87 crore. The revenue deficit will be Rs 1,390 crore.

The Budget statement loaded with development proposals and self-patting for improving the main financial indicators of the State's economy also stands for a major policy shift in the health sector, especially in the countryside. The fiscal deficit in the Budget, that projects to achieve 6.4 per cent growth rate against the current year's figure of 5.3 per cent, has been pegged at Rs 3576.30 crore.

The major gainers from the Budget will be the MLAs, who succeeded in making an addition in the Budget proposals virtually at midnight last night immediately after the meeting of the Congress Legislature Party (CLP). In the Budget a sum of Rs 25 lakh has been earmarked exclusively for each MLA for critical infrastructure in his or her constituency on the pattern of the Member of Parliament Local Area Development Fund (MPLAD).

There is a heart warming announcement for Sarpanches and chowkidars. Mr Singla has announced an honorarium of Rs 600 per month for each sarpanch and an increase in the honorarium for chowkidars from Rs 200 to Rs 400 per month. Each panchayat has been given grant of Rs 300 per month for cleanliness of the village. The old-age pension has been increased from Rs 200 to Rs 250 per month and the grant under the “Ashirward” scheme for Scheduled Castes, Christian girls, and daughters of widows has been increased to Rs 15,000 from Rs 6,100.

Besides proposing the creation of rural business hubs at six places in rural areas, Mr Singla has also announced the decision to set up the Punjab Rural Business Hub Council. The Government is to set up knowledge centres in 300 villages. A land port with facilities such as tourist reception, lodging, restaurants etc would be set up at Wagah border and there will be special programme for the development of 17 border blocks.

The Government is to soon announce special incentives for projects having a minimum investment of Rs 1,000 crore. However, there is nothing in the Budget for the unorganised sector, the largest employer in the state.

All slums and illegal colonies, which are not located on public land, will be regularised and provided with required infrastructure such as drainage, roads, street lights and water supply.

Except 4 per cent tax on pre-owned cars, there is no other tax proposal in the Budget. Explaining the tax on pre-owned cars, the authorities concerned said that it would be on the resale of such cars. System of separate audit required under VAT has been done away in those cases where the dealer is already subjected to income audit and his turnover is certified by qualified auditors.

Information Collection Centres, which have been virtually operating as tax barriers at major entry points in the state, have been disempowered from detaining vehicles at the centres. Also, wide-ranging reforms have been assured in the excise policy. Mr Singla also announced the decision of the government to set up the 5th Pay Commission for employees.

A promise has been made to clear pending dues worth Rs 36.30 crore of sugarcane suppliers to cooperative sugarmills by March 31. However, there is no mention regarding the clearance of the two pending installments, totalling Rs 20 per quintal, of bonus on paddy.

The State Government is to hand over the control of all 1,310 rural dispensaries to Panachayati Raj Institutions. Each dispensary will be provided Rs 3.60 lakh per annum to engage service provider( private parties) who will be responsible for providing services of doctors, para-medics and availability of drugs at dispensaries. A sum of Rs 48 crore has been proposed to be devolved to Zila Parishads for this purpose. In other words, it marks the entry of private players in civil dispensaries which till now are being run by the Punjab Health Department. All Government medical and dental colleges have been provided with Rs 22 crore for expansion and improvement.

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