Punjab presents ₹2.04lakhcrore budget; Oppn. dubs it ‘visionless’
Punjab Finance Minister Harpal Singh Cheema on Tuesday presented the Aam Aadmi Party (AAP) government’s budget proposal for the year 202425 with a total outlay of ₹2,04,918 crore, focusing on education, health and agriculture.
The budget proposal was presented in the State Assembly in Chandigarh during the ongoing session. “I propose a total budget expenditure of ₹2,04,918 crore for FY 202425. The effective revenue deficit and fiscal deficit are expected to be 2.77% and 3.80%, respectively and have improved from the previous figure of 3.13% and 4.12%, respectively,” said Mr. Cheema. He added that Punjab is growing at a rate of 9.41% in the current year and the Gross State Domestic Product (GSDP) stands at ₹7,36,423 crore. The GSDP is estimated to grow at 9% to ₹8,02,701 crore in FY 202425.
‘Centre apathetic’
Taking a dig at the Bharatiya Janata Party (BJP) government at the Centre, Mr. Cheema said it was his responsibility to apprise the House about the apathy displayed by the Union government towards Punjab. “Withholding of the rightful share of the State, totaling ₹8,000 crore approximately, on account of National Health
Mission, Rural Development Fund, Mandi Development Fund, and Special Assistance to State for Capital Investment, has directly affected developmental works and placed an additional burden on the State treasury,” he said.
According to budget estimates, the effective outstanding debt for FY 202425 is likely to be ₹3,53,599.90 crore, as compared to ₹3,23,134.98 crore (revised estimates) in the previous financial year.
The effective outstanding debt to GSDP is estimated to be 44.05% for FY 202425. The Punjab government paid ₹22,500 crore as interest on the debt in FY 202324, which is expected to increase to ₹23,900 crore in FY 202425 .
Opposition parties slammed the AAP government over the budget. BJP national spokesperson Jaiveer Shergill said the budget “lacked vision” and was a hollow betrayal of Punjabis. He said that no steps have been taken to revive the State economy that was “put in reverse gear” by AAP. “Today’s budget has shattered the hopes of different sectors across the State,” he said.
Punjab Congress president Amarinder Singh Raja Warring described the budget as “rudderless”, and added that on average, AAP is borrowing ₹30,000 crore annually. The government failed to explore additional revenue sources, he said.