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Dhindsa unlikely to impose new taxes in Punjab budget today
Naveen S Garewal/TNS

Chandigarh, June 19
The budget of the SAD-BJP alliance to be presented tomorrow is expected to be a lacklustre affair. Finance Minister Parminder Singh Dhindsa is neither likely to impose any new taxes nor is he preparing to give any major relief. The state government is likely to step down from the promises made by it in the manifesto prior to the Assembly elections earlier this year.

The line adopted by the SAD-BJP alliance is that with the Model Code of Conduct in place on account of the Dasuya bypoll scheduled for July 11, no major announcement can be made. Also, with the fiscal deficit likely to shoot up further, the government is in no position to make any announcements regarding new sops. It is learnt that Dhindsa is just going to announce continuation of the existing sops.

The BJP is strongly against the imposition of any taxes for the urban areas. The party has also opposed the levy of tax or cess on sewerage, water and electricity. The SAD, which has a rural mass base, is in no mood to withdraw subsidy to the farmers in the form of free electricity, etc.

In the last two-and-a-half months in office, the SAD-BJP alliance has raised loans to the tune of Rs 2000 crore. It is also being speculated Punjab may go in for Haryana Model for imposition of house tax in urban areas. This would be essential to fulfil criteria to get grants under Jawaharlal Nehru Urban Renewal Mission. Haryana had recently announced imposition of Re 1 per yard on property on houses up to 250 square yard and 50 per cent concession as been given on self-occupied property. 

Even some of the promises made in the election manifesto are likely to be toned down on account of scant fiscal resources. For example, the scheme of giving laptops to the class XI and XII students is proposed to be limited to one-and-a-half lakh class XI students only. Even the payment of arrears of pay to government employees, as granted by the Fifth Pay Commission, is expected to be staggered.

Though former Finance Minister Manpreet Singh Badal advocated the withdrawal of subsidies in every budget he presented, the two subsequent finance ministers Dr Upinderjit Kaur and Parminder Singh Dhindsa are votaries of continuing with the subsidies. The budget is, therefore, unlike to see any cut in the subsidies. The major thrust areas are expected to be education, health and social welfare.

No new sops expected
  • With the fiscal deficit likely to shoot up further, any announcements of new sops unlikely
  • Punjab may go in for the Haryana Model for the imposition of house tax in urban areas
  • The scheme of giving away laptops to the class XI and XII students proposed to be limited
  • Payment of arrears of pay to govt staff, as granted by the Fifth Pay Commission, expected to be staggered

Thrust areas

The major thrust areas of the SAD-BJP alliance are expected to be education, health and social welfare. Outlays for these are expected to be increased as compared to last year.

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