Punjab Finance Minister announces new revenue proposal

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The Punjab government came up with a new revenue proposal as per which a development tax on income tax payers as the state tries to balance the deficits.

In the beginning of April, income tax assessees — professionals, traders and employees — may have to pay Rs 200 per month.

This Punjab Development Tax, along with a tax for funding social security schemes, was announced by Finance Minister Manpreet Singh Badal as he presented his Budget proposals for 2018-19.

The proposals totalled Rs 1,02,198 crore. The Opposition MLAs of the Aam Aadmi Party and SAD-BJP walked out on the issue of “insufficient funds” for the crop loan waiver scheme.

With Punjab earning Rs 73,812 crore as revenue and spending Rs 86,351 crore, the revenue deficit has been pegged at Rs 12,539 crore. Also, Punjab’s debt is set to swell to Rs 2,11,523 crore by March 2019.

By this tax they expect to raise Rs. 150 crore annually.

Manpreet Badal admitted that despite the new taxes, there would be a resource gap of Rs 4,175 crore.

“We will be increasing non-tax revenue, by raising the fee levied on government forms/services and by routing all funds through the state consolidated fund — from Rs 5,096.18 crore this year to Rs 10,248.85 crore in 2018-19,” Manpreet Badal said. The Finance Bill is likely to be taken up for passage on Tuesday.