The Punjab Budget 2024-25, presented by the state government, outlines the financial roadmap and policy priorities for the upcoming fiscal year. With an emphasis on economic growth, education, irrigation, agriculture and forestry, the budget aims to foster development while maintaining fiscal discipline. Let us jump into the key highlights, policy initiatives and financial projections of the Punjab Budget 2024-25.
Economics Overview
The Gross State Domestic Product (GSDP) of Punjab for 2024-25, at current prices is projected to be Rs 8,02,701 crores. This represents a 9% increase over the previous year, underscoring the state’s optimistic economic outlook. The projected growth reflects the government’s efforts to bolster various sectors, including agriculture, industry and services
Expenditure and Receipts
The total expenditure (excluding debt repayment) for 2024-25 is estimated at Rs 1,35,051 crores, marking a 4.3% increase over the revised estimate for 2023-24.
This rise in expenditure is aimed at funding critical development projects and public services. Additionally, the state will repay Rs 69,867 crores in debt, highlighting its commitment to financial responsibility.
In 2023-24, the revised expenditure (excluding debt repayment) is estimated to be Rs 1,29,450 crores, which is 4% lower than the budget estimate. This indicates prudent fiscal management by the state government to contain expenditure within sustainable limits
On the revenue front, receipts (excluding borrowings) for 2024-25 are projected to be Rs 1,04,586 crores, a 5.5% increase over the revised estimate to be Rs 99,140 crores, slightly below the budget estimate by 1%. The increase in receipts for the coming fiscal year is expected to support the state’s expenditure plans.
Deficits and Fiscal Discipline
The revenue deficit for 2024-25 is estimated at Rs 23,198 crores, which is 2.9% of the GSDP. This is a slight improvement from the revised estimate for 2023-24, where the revenue deficit is pegged at Rs 23,812 crores or 3.2% of the GSDP. The state’s efforts to narrow the revenue deficit indicate a move towards better fiscal health.
The fiscal deficit for 2024-25 is targeted at 3.8% of GSDP, amounting to be Rs 30,465 crores. In 2023-24 the revised fiscal deficit is expected to be 4.1% of GSDP , lower than the budget estimate of 4.98%. This reduction in the fiscal deficit demonstrates the state’s commitment to maintaining fiscal discipline and ensuring sustainable economic growth.
Policy Highlights
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Education – Education remains a top priority for the Punjab government. The budget introduces several initiatives aimed at improving the quality of education and skill development. In Punjab news today is all about, “The Mission Samarth Program” that will be launched to impart essential skills to primary and upper primary students. Additionally, 118 schools of Eminence and another 100 government senior secondary schools will be upgraded into “Schools of Brilliance”. To further enhance skill development, a School of Applied Learning will be established and high tech vocational labs will be constructed in 40 schools.
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Irrigation – To boost agricultural productivity, the Punjab government has announced the Malwa Canal Project. This new initiative aims to provide irrigation coverage to around 1.78 lakh acres in districts of Bathinda, Faridkot, Ferozpur and Muktsar. By improving irrigation infrastructure, the state hopes to enhance crop yields and support farmers.
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Agriculture – The Punjab Horticulture Advancement and Sustainable Entrepreneurship scheme is a significant initiative aimed at developing horticulture clusters in major production zones. This scheme seeks to promote sustainable agricultural practices and boost the income of farmers through improved horticulture practices.
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Forestry – The Human Wildlife Conflict Management Scheme is another noteworthy initiative in the budget. According to Punjab latest news, this scheme aims to address and mitigate conflicts between humans and wildlife, ensuring the safety of both. By implementing this scheme, the government hopes to promote harmonious coexistence and protect biodiversity.
Central Grants
Grants from the central government for 2024-25 are estimated at Rs 11,748 crores, representing a 33% decrease from the revised estimate for 2023-24.
This significant reduction is primarily due to the discontinuation of GST compensation grants in revenue deficits. The Punjab state government will need to strategize to compensate for this shortfall and ensure continued development.
Conclusion
The Punjab Budget 2024-25 outlines a balanced approach to economic growth, fiscal discipline and social development. With targeted investments, the budget aims to enhance the quality of life for residents and foster sustainable development. Despite challenges such as reduced central grants, the state government’s proactive policies and financial prudence are poised to steer Punjab towards a prosperous future.