CHANDIGARH: Punjab 199394 annual plan of Rs.1, 250 crore faces an across the board cut of 25% in the wake of severe financial crisis. According to the memorandum prepared by the finance department after reviewing last seven months’ performance, the shortfall in the availability of resources is estimated at Rs.320) crore, On the other hand, the extra expenditure committed over and above the budgetary allocations by various departments amounts 10 Rs. 121.54 crore.
For mobilization of resources for the 199495 plan, the finance department has proposed a further revision of power tariff rates to bring the losses of the Punjab State Electricity Board to zero level. The 199394 annual plan sizes would have to be further slashed in case the target of recoveries of Sales tax and excise is not met.
The finance department has described the financial scenario as “bleak.” On top of the department’s incurring excess expenditure over and above the budgetary allocations is police with an excess amount of Rs, 75.69 crore followed by transport department with Rs.34.18 crore.
The state government requires Rs.604 crore for the ongoing Thein dam project and to start the construction of Shah Pur Kandi project and faze IL of the Bathinda thermal project in 1994.95. This requirement cannot be met from the normal plan allocations. The resource mobilization position is inelastic. The state government would have to entirely depend upon the Center for this purpose.
Article extracted from this publication >> December 17, 1993
