Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Budget Extravaganza »
Open DEMAT Account in 24 hrs
 All outstanding personal tax demand notices up to Rs 25,000 withdrawn till FY 2014-15 in Budget 2024
 Budget 2024: Why there is an urgent need to hike Section 80C deduction ceiling for income tax benefits
 Budget 2024: Long term capital gains tax and the holding period for different assets explained
 No increase likely in income tax rebate in interim budget: FinMin official
 Income tax expectations for Budget 2024: Focus on medical insurance and capital gains tax
 Whole world looking at India s budget with hope
 Pre-budget expectations for salaried individuals on tax relief Budget 2023
 Centre expected to introduce new income tax slabs in Budget 2023: Report
 Budget 2023: Pre-budget expectations for salaried individuals on tax relief
  Will non-extension of tax benefits for affordable housing impact sales Budget 2022
 Budget 2022 allows 2 more years to file ITR; Know the whopping cost of delay in filing

No new taxes in pre-bypoll budget
July, 08th 2009

Despite battling revenue deficit of over Rs 4,000 crore, increasing debt-trap and recessionary mode, the Punjab government, mindful of the upcoming three byelections, has managed to repeat its last years budget mantra of No new taxes. Instead, it would be spending Rs 3,000 crore to fulfill part of its promise to the government employees of implementing 5th pay commission by giving them enhanced salaries from next month.

Announcing this during his budget speech in the Punjab assembly on Tuesday, finance minister Manpreet Badal admitted that the increase in revenue deficit over the previous year was mainly on account of provision made for implementation of the pay commission recommendations. Notably, 99% of revenue receipts are going towards committed expenditure which includes salaries, pensions and interest payment.

However, the commissions recommendation on payment of arrears with retrospective effect from January 1, 2006 may be put off till next year as the state would not be able to bear the additional burden of Rs 4,800 crore. The minister said that all the states have asked the Union government to help them out on this front.

Increased borrowings, not taxes or any other fiscal prudence, would be used to cover up the revenue deficit of Rs 4233.92 crore, even as the opposition Congress described the budget document as visionless and directionless. This comes when the government has conveyed to the finance commission that Punjab has reached a stage of debt unsustainability. The debt Gross State Domestic Product (GSDC) ratio has been calculated at 37.63% , which the FM claimed, was better than the previous years figure of 40%.

While admitting that VAT and stamp receipt collections had taken a hit after October 2008, he conceded that the slow growth of GSDP was due to the lack of investment atmosphere in the state. While poor finance has constrained public investment, tax concessions in the neighbouring hill state attracted private investment, he added.

The plan proposals, which mostly hinged around Punjabs share in the Central government schemes, are of the size of Rs 8,625 crore, which is 39% higher than last years approved outlay of Rs 6,210 crore. Maximum thrust, this year, has been given to energy sector at 30%.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting