Punjab’s poll year Budget elicits mixed reactions

Neeraj Bagga

Amritsar, March 5

The Punjab Budget presented in state Assembly on Tuesday by Finance Minister Harpal Singh Cheema has elicited mixed reactions from people belonging to different sections of society with experts being of the view that giving away freebies to people may burden the state exchequer.

Dr SS Chinna, Senior Fellow, Institute of Social Sciences, New Delhi, said the Budget for 2024-25 appeared to be one filled with high hopes in a state overburdened with debt. The allocation of Rs 575 crore for crop diversification was prudent as it shall promote employment both for labour as well as capital and reduce the extraction of groundwater, he said. The allocation of Rs 3,367 crore for industry, though short is still encouraging as it would be used to provide subsidy for electricity. Sports nurseries in villages are needed to divert the young from intoxicants. The power subsidy and free travel for women was a big misuse of the state resources that would continue. But being a parliamentary election year, it remains to be seen as to what is accomplished ultimately, he said.

Gunbir Singh, former Chairman, CII Punjab, said the Budget needed a deep dive into employability of youth through augmentation of industry and business potential. Healthcare and education continue to be focus of the AAP government. This is especially so because overseas opportunities for undergraduates are drying up quickly. The tourism push is appreciable but the proof of pudding will be in eating, he said.

Office-bearers of the Punjab Pradesh Beopar Mandal (PPBM) said the industry was allocated only 1.65 per cent of the entire Budget. The service sector, which contributes 50 per cent to the state GDP, received peanuts, they said.

Piara Lal Seth, president, PPBM, said the government’s estimate suggested a nine per cent increase in the state budget for 2024-25. However, only Rs 3,367 crore was kept for trade and industry, which is only 1.65 per cent of the Budget.

Seth said a cursory look at the allocations for agriculture, education and healthcare suggested that a nominal provision in the Budget was made for the taxpayers. New business hubs should have been created for the retail sector, wholesale trading sector and service or tertiary sector.