Revenue collections hit due to economic slowdown: Punjab govt

The Punjab government today said that VAT collections as well as overall revenue generation of the state have come down due to slowdown in the economy.
"Our growth in revenue collection was not as it was expected. Our VAT collections also went down on account of slow down in economy. We also faced problem in central taxes as our collections were lesser this year," Punjab Finance Minister Parminder Singh Dhindsa said after tabling the budget in the Vidhan Sabha today.
Punjab has projected revenue deficit of Rs 6,393.96 crore for 2015-16 in the budget presented here in the state Assembly today. Last fiscal, the state had projected revenue deficit of Rs 4,252 crore which is likely to increase to Rs 6,240 crore in 2014-15 as per revised estimates.

Punjab had projected revenue receipts of Rs 44,893 crore for 2014-15 but as per revised estimates, the receipts are pegged at Rs 42,742 crore for current fiscal.
However, he further said Haryana's projected revenue deficit was more than that of Punjab for next fiscal.
On how to bridge the gap between revenue receipts and expenditure, Dhindsa pinned hopes on 10 per cent increase in states' share in central taxes.

"Our share in devolution of taxes will go up and it will have positive impact on fiscal situation," he said adding that the state expected to get Rs 2,500 crore because of 10 per cent increase in share in union taxes.

However, he said there was no clarity yet on central sponsored schemes.
He said the focus of the budget 2015-16 which was presented today was on fiscal consolidation, skill and entrepreneurship development.
"This year our focus was on fiscal consolidation. We have targeted to keep fiscal deficit under 3 per cent (of GSDP) and making efforts to bring down revenue deficit," he said.
Asserting that the budget was a realistic one, he said that the revenue targeted had been kept conservative for next fiscal.
He further said that the state had also focus on raising capital expenditure which would have positive impact on economic activity.

Asked about poll promise of giving laptops to school students, he said that if the education department approached the department then it would provide funds for the same.