Punjab finance minister Harpal Singh Cheema on Tuesday presented a whopping budget of ₹2,04,918 crore budget for the financial year (FY) 2024-25. The Budget primarily focused on the Agriculture and Education Sector of the state. The outlay is 2.93% more than the 2023-24 (revised estimates) of ₹1,99,076 crore. In the 2023-24 budget estimates, the finance minister envisaged spending ₹1,96,462 crore. Here is an overview of the budget allocation proposed for various sectors:
- Education- Rs 16,987 crore
- Agriculture & Farmers Welfare- Rs 13,784
- Home Affairs, Justice & Jails- Rs 10,635 crore
- Social Welfare & Social Justice- Rs 9,388
- Free Power to Farmers- Rs 9,330 crore
- Power- Rs 7,780 crore
- Local Government & Urban Development- Rs 6,289 crore
- Health- Rs 5,264 crore
- Industries & Commerce- Rs 3,367 crore
- Rural Development & Panchayats- Rs 3,154 crore
- Infrastructure Roads & Bridges- Rs 2,695 crore
- Water Resources- Rs 2,107 crore
- Revenue Rehabilitation & Disaster Management- Rs 1,573 crore
- Food, Civil Supplies & Consumer Affairs- Rs 1,072 crore
- Transport- Rs 550 crore
- Sports & Youth Services- Rs 272 crore
- Employment Generation & Training- Rs 179 crore
- Tourism & Cultural Affairs- Rs 166 crore
- Defence Services- Rs 77 crore
Total Budget:
A total Budget Expenditure of ₹2,04,918 crore for FY 2024-25 was proposed. The Effective Revenue Deficit and Fiscal Deficit are expected to be 2.77% and 3.80%, respectively and have improved from previous figure of 3.13% and 4.12%, respectively.
Agriculture:
An allocation of ₹13,784 crore has been earmarked for the agriculture and allied sectors in next financial year. Showcasing the Government’s is committed to the “Annadatas” in every way and as a gesture of continued support for them, we have allocated ₹9,330 crore in FY 2024-25 towards power subsidy for agriculture.
For judicious use and effective management of available surface and groundwater resources, a budgetary outlay of ₹194 crore for soil and water conservation, including proposals to undertake two new NABARD projects for providing financial assistance to farmers for laying underground pipelines for irrigation were proposed. An allocation of ₹263 crore has been provided in FY 2024-25 for supporting forestry efforts.
Education Sector:
A budgetary outlay of ₹16,987 crore in FY 2024-25 for the Education sector was proposed which is around 11.5% of the Total Expenditure.Various policies announced by the government such Schools of Eminence have begun to fructify. An allocation of ₹525 crore is proposed in FY 2024-25 to support future efforts of the Technical Education department.
Mission Samrath:
The Government proposed to launch “Mission Samrath” to imbibe essential skills to primary and upper primary students with a proposed allocation of ₹10 crore in FY 2024-25 . The proposed allocations are outlined below:
i. Samagra Shiksha Abhiyan: ₹1,593 crore;
ii. For providing Mid-Day Meal to 16.35 lakh students: ₹467 crore; i
iii. For free books, repair and maintenance of schools: ₹140 crore;
iv. For upgradation of infrastructure and installation of roof-top solar panels in Government Schools: ₹160 crore;
v. Financial Support for Upkeep of Government Schools: ₹82 crore; vi. For providing uniforms to pre-primary students: ₹35 crore; and
vi. Punjab Young Entrepreneur Programme: ₹15 crore
Higher Education:
A budgetary outlay of ₹1,133 crore in FY 2024-25 was proposed for undertaking the developmental activities under Medical Education and Research which includes a special provision for developing a girls' hostel at Government Ayurvedic College, Patiala. An allocation of ₹5,264 crore in FY 2024-25 for the Health services has been provisioned.
AAP Government would continue supporting various State Universities like GADVASU, PAU, Sri Guru Teg Bahadur State University of Law, Punjab University, Punjabi University, GNDU and others; together with their constituent colleges for which a budgetary allocation of ₹1,425 crore is proposed in FY 2024-25.
Government understands the importance of Punjab Agricultural University (PAU). In recognition of the role played by the University, a provision of ₹40 crore has been made for the development of research-related and other infrastructure in the University in FY 2024-25. In addition to this, an initial allocation of ₹40 crore is proposed in FY 2024-25 for the construction of the Hostel at Panjab University, Chandigarh.
Health & Medicine:
Over the past two years, our Government has been implementing transformative initiatives in the health sector. An allocation of ₹5,264 crore in FY 2024-25 for the Health services has been provisioned. In addition to this, an allocation of ₹249 crore has been earmarked in FY 2024-25 for AAP Medical Centres.
Sports:
A budgetary outlay of ₹272 crore for Sports and Youth Services in FY 2024-25 was proposed with the hope of creating and nurturing world class talent in sports from Punjab. The government proposed to establish 1,000 sports nurseries for approx. 60,000 sportspersons aged between 6 to 17 years in all districts of Punjab. In the first phase, 250 sports nurseries are being established with proper coaching and availability of sports equipment to players, for which an initial outlay of ₹50 crore is proposed in FY 2024-25.
To promote sports education in the areas of Sport Science, Sports Technology, Sports Management and Coaching, etc. an allocation of ₹34 crore for Maharaja Bhupinder Singh Punjab Sports University in FY 2024-25 was proposed.
Employee training:
Counseling and skill training is very important to improve employability. Cheema proposed a budgetary outlay of ₹179 crore in FY 2024-25 for the implementation of various schemes of training and skill development. We are initiating Punjab Hunar Vikas Yojna in this regard and also focusing on strengthening of C-PYTE training centers for which ₹46 crore has been earmarked in FY 2024-25.
Industrial Sector:
A budget of ₹3,367 crore including subsidized power to our industrial sector in FY 2024-25. Also, ₹50 crore has been initially earmarked for other fiscal incentives to the industries of the State.
Food Supplies, Civil Supplies:
An allocation of ₹1,072 crore is proposed in FY 2024-25 for undertaking various initiatives in the Food and Civil Supplies department.
Disaster Relief:
Budget of ₹1,573 crore was proposed in FY 2024-25. The Government extended compensation of ₹490 crore approx. in the current financial year to cover various losses, including crop damage, loss of human lives, harm to livestock, and damage to residences.
In the current fiscal year, an amount of approx. ₹150 crore has been utilized for the construction and repair of District Administrative Complexes, Tehsils, Sub-Tehsils, and Sub-Divisional Complexes, with an aim to facilitate efficient operations and provide improved services to public.
Defence services
To continue the Government’s efforts to facilitate the defence personnel, ₹77 crore in FY 2024-25 were proposed to deliver welfare services. The previous budget promised an increase in the ex-gratia grant to ₹1 crore. Further, the pensions for war widows increased from ₹6,000 to ₹10,000 per month and assistance to blue-star affected Dharmi Fauji increased from ₹10,000 to ₹12,000 per month. Also, the pension for war jagirs is being increased from ₹10,000 to ₹20,000 per annum.
Tourism:
Considering the steadfast need to promote Punjab as a tourist hub, a budgetary outlay of ₹166 crore in FY 2024-25 was proposed, with a special outlay of ₹30 crore for the construction, upkeep, and preservation of various memorials and ₹30 crore for branding of tourism in the State.
Home Affair, Justice and Jails:
A budgetary outlay of ₹10,635 crore has been provisioned for FY 2024-25 for the department of Home Affairs, Justice and Jails to support their law enforcement initiatives.
Social Welfare:
AAP Governments’ commitment to undertake social welfare initiatives, foster development of an equitable, just, and compassionate society can be seen in its support to various social welfare schemes, for which an allocation of ₹9,388 crore is proposed in FY 2024-25. 86. The Government has provisioned ₹5,925 crore in FY 2024-25 for providing social security pension across different categories. An allocation of ₹13,844 crore during FY 2024-25 has been provisioned towards the Scheduled Caste Sub-Plan (SCSP) which stands at 35% of the total development Budget of the State.
Infrastructure:
Roads:
An outlay of ₹2,695 crore was proposed for the arteries of connectivity i.e. Roads and Bridges. In Sri Anandpur Sahib, many villages still lack proper connectivity even after 75 years of Independence. For ease of travel and proper connectivity of the residents of these villages, an initial allocation of ₹30 crore has been made for the 24 construction of bridges between Khera Kalmot and Bhalladi & between Bela Dhyani and Ajauli.
Water Supply, Sanitation:
According to Cheema, Punjab has successfully achieved full coverage in providing tap piped water supply facilities to rural households. The State has earned the distinction of being 5th in India to attain the “Har Ghar Jal” status. To tackle the challenges related to water quality and scarcity, 15 large multi-village surface water supply schemes costing approx. ₹2,200 crore covering 1,706 villages are expected to be completed in FY 2024-25.
An allocation of ₹1,549 crore has been earmarked in FY 2024-25 for executing projects such as Swachh Bharat Mission (Grameen), replacement and rehabilitation of existing infrastructure, and the establishment and augmentation of surface-water based scheme.
Water Resources:
AAP Government acted promptly to minimize losses due to floods this year and allocated ₹100 crore for cleaning operations. Additionally, ₹192 crore were spent to address 25 breaches in major rivers caused by incessant rains and floodwater. In order to further strengthen the canals, a budgetary outlay of ₹2,107 crore has been made in FY 2024-25.
An allocation of ₹143 crore for undertaking new projects- construction/ re-modeling and lining/ re-lining works in FY 2024-25 and ₹150 crore for completion of relining of Rajasthan and Sirhind feeder.
Urban Development:
An allocation of Rs. 510 crores was proposed for FY 2024-25 to complete the pucca houses left to be completed from FY 2023-24. For undertaking works under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) related to water supply schemes and environmental rejuvenation, ₹394 crore is hereby proposed in FY 2024-25. Further, for the Swachh Bharat Mission; National Urban Livelihood Mission; Punjab Municipal Development Fund, a total of ₹538 crore has been provisioned in FY 2024-25.
Rural Development:
An allocation of ₹3,154 crore in FY 2024-25 was proposed for Rural Development. The following allocations are being proposed for different schemes for Rural Development during FY 2024-25:
i. MGNREGS: ₹655 crore for providing employment;
ii. Pradhan Mantri Krishi Sinchai Yojana: ₹20 crore;
iii. National Rural Livelihood Mission: ₹120 crore; and
iv. Rashtriya Gram Swaraj Abhiyan: ₹20 crore.
Transport:
Through “Mukhyamantri Tirath Yatra” Punjabis have been provided an opportunity for free pilgrimage to various religious places of the Nation. An allocation of ₹550 crore for the transport sector with ₹25 crore for this scheme is proposed in FY 2024-25. Along with this, the Government has launched the Electric Vehicle policy and earmarked ₹10 crore in FY 2024-25 for providing incentives under it.
Vehicle scrapping facility in Ludhiana and Morinda has already started working and an exemption up to 25% in Motor Vehicle Tax is being provided to new non-transport vehicles. Additionally, approx. 11 crore women of the State have availed free bus travel facility during the current year for which 29 ₹450 crore has been provided by the Government and an allocation of ₹450 crore has been provided in FY 2024-25 for continuing this service.
Electricity
Presently 90% of domestic consumers are receiving zero electricity bills. An allocation of ₹7,780 crore has been provided in FY 2024-25 for providing free power of 300 units per month to domestic consumers.
Aviation & Flights:
A new air terminal at Adampur with a cost of around ₹150 crore, replacing the previous porta cabin capacity of 75 passengers to a 150-passenger capacity has been completed. Additionally, ₹15 crore was disbursed by the State Government for construction of a road at the airport.
Revenue:
The Total Revenue Receipts have been projected to be ₹1,03,936 crore in FY 2024-25, of which the Own Tax Revenue accounts for ₹58,900 crore. Further, the Share of Central Taxes has been pegged at ₹22,041 crore and Grant-in-Aid from Centre at ₹11,748 crore in FY 2024-25.