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No fresh taxes in Punjab Budget

Staff Correspondent

Sarpanches of village panchayats to get a monthly honorarium of Rs 600; old age pension up

CHANDIGARH: The four-year-old Congress Government in Punjab has proposed no new taxes in its Rs. 25,706.32-crore Budget for 2006-07, closing with an overall revenue deficit of Rs. 1390 crores despite a cash surplus of Rs. 2085.55 crores. A considerable reduction has been shown in the fiscal deficit, which has been contained at Rs. 3576.30 crores.

Presenting the Budget on Tuesday, Finance Minister Surinder Singla indicated a 59.46 per cent increase in the plan size which has been fixed at Rs 4,000 crores.

He said that due to improvement in finances, an expenditure of Rs 2,116 crores was incurred to service the previous plan provision of Rs 3,557.86 crores, returning a 59.46 percent performance.

Mr. Singla claimed to have launched a "credible'' development effort after a gap of many years as the State's economy had inched towards a growth rate of 5.5 per cent.

Another parameter depicting the resurgence in the economy was indicated by the fact that the per capita income at constant prices increased to Rs 16,756 as against Rs 16,119 in 2003-04.

Meanwhile, talking to The Hindu the Chief Minister, Amarinder Singh, said that the Budget was a historic one as never before had any government made fresh allocations of around Rs 4,000 crores to ensure the all round development of the State. He said that liberal provisions had been made to implement the Agriculture Renewal and Diversification programmes, Rural and Urban Development scheme and Infrastructure augmentation schedule.

The Government would launch special programmes, which include the Rs 45-crore Rashtriya Sam Vikas Yojana in Hoshiarpur district, Rs 10.08-crore Border Development Programme for the 17 blocks along the international border, create a land port Wagah in Amritsar, Rs 500-crore Punjab Nirman Programme and setting up the State Pay Commission for the employees.

Among the new announcements made by Mr. Singla were the provisions of Rs 915.16 crores for district level schemes, Rs 25 lakhs for each legislator to meet critical infrastructure needs of their respective constituencies, devolution of Rs 48 crores to Zila Parishads.

The Sarpanches of village panchayats would start receiving a monthly honorarium of Rs 600.

In social sector, the initiatives include 25 percent increase in the old age pensions, setting up of 2,691 centres under the Integrated Child Development Scheme and enhancing the grant under "Aashirwad scheme'' for Scheduled Castes, Christians and daughters of widows to Rs 15,000 from Rs 6,100.

In his reaction, the Leader of the Opposition and former Chief Minister, Parkash Singh Badal, said that it was surprising that even in its last year, the government had failed to come up with a Budget which could bring smiles to the faces of employees, traders, farmers or students.

The government has clearly abandoned even its own pet projects like contract farming, diversification, mega-industrialisation and a job for at least one member in every Dalit family, he said in a statement.

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