Punjab government is unlikely to spend 100 per cent of its approved annual plan for the current fiscal because of less revenue mobilisation caused by economy slowdown.
"We will not be able to achieve 100 per cent utilisation (of annual plan)...Last fiscal we achieved 60 per cent (utilisation) and during current fiscal, we expect it (utilisation) will be about 70 per cent (of approved outlay)," Punjab Finance Minister Parminder Singh Dhindsa told reporters on the sidelines of NABARD seminar here today.
Dhindsa attributed non-achievement of approved planned outlay to low revenue generation because of slowdown in economy. "With the slowdown in economy, revenues are not generated as expected," he said.
However, he said the overall state's revenue growth has been more than 10 per cent so far in current fiscal. "Revenue from VAT collections have grown by 13 per cent, while overall growth in revenue collections have been over 10 per cent," he added.
So far, the state government has achieved 50 per cent utilisation of annual plan for 2013-14.
Planning Commission had approved Punjab's annual Plan outlay of Rs 16,123 crore for 2013-14, which is 15.2 per cent higher than the outlay for 2012-13.
Maximum funds were earmarked in planned outlay of 2013-14 were for social services at Rs 5,963 crore, for energy sector at Rs 3,224 crore and transport sector at Rs 2,165 crore.
Notably, Punjab government could not spend 100 per cent of the annual plan which was approved at Rs 11,520 crore for 2011-12. However, the outlay in the plan was again revised downward to Rs 9,702.46 crore.
The state could actually spend Rs 7,457 crore in 2011-12 which was just 65 per cent of approved outlay and 76 per cent of revised outlay.
In the 11th five year plan period, the plan performance of Punjab has been 98 per cent in 2007-08, 112 per cent in 2008-09, 58 per cent in 2009-10, 91 per cent in 2010-11 and 65 per cent in 2011-12.
"Mounting" committed expenditure including salary, pension and debt servicing has been a major worry for fund-starved Punjab state as these expenditures "consume" bulk of state's revenue, leaving less money for spending on boosting development activities.
When the last state budget was presented, the finance minister had pinned hopes on extra collection of over Rs 6,500 crore due to increase in VAT, excise, and stamp duty revenue besides better tax compliance to put state's finances on the track.
