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Punjab government to adopt vote-on-account,full budget in June
Saturday, March 17, 2012 - 08:15
By Naresh Kumar Sharma
CHANDIGARH: With the maiden session of the new assembly beginning on Monday, the SAD-BJP combine government headed by Parkash Singh Badal would adopt vote-on-account due to the fact that that there is very less time for regular customary budget presented usually in March.Notwithstanding the huge debt of the state, he said that in fact centre government has comparatively debt burden on larger scale as compared to the state. Though, he said that major share of the taxes even those collected by the state go to the centre which makes its revenue collection resource on a very wider level. He said that due to this there is a need that states should also get their share from the central tax revenue.
The vote-on-account is usually sought or presented when the government does not have the time to present a full budget. Generally, the vote-on-account is sought for three months which will give the new government time till June to prepare his budget provisions. The vote-on-account becomes mandatory for the state as no funds can be released from April 01 since the previous budget of 2011-12 was only till March 31.
To present a full budget, it takes at least a month's time to prepare the budget provisions.With the Akalis having made lofty promises in their manifesto, it would be interesting to see that the full budget to be presented probably in June would include fulfilling some of its populist measures and raising investments to push the economic growth of the state especially owing to the fact that state's financial health was fragile and vulnerable at the moment.
The new state finance minister Parminder Singh Dhindsa said that state was not confronting any sort of fiscal crisis as was being made out in certain circles..
Notwithstanding the huge debt of the state, he said that in fact centre government has comparatively debt burden on larger scale as compared to the state. Though, he said that major share of the taxes even those collected by the state go to the centre which makes its revenue collection resource on a very wider level. He said that due to this there is a need that states should also get their share from the central tax revenue.
Experts says that as per constitutional arrangements for the distribution of financial powers and functions between the Centre and the States, the division of resources heavily favours the Central government in the bifurcated federal system of country. In view of this, the states like Punjab had been advocating for more share of states in central taxes revenue pool.
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Punjab Newsline
Saturday, March 17, 2012 - 08:15
By Naresh Kumar Sharma
CHANDIGARH: With the maiden session of the new assembly beginning on Monday, the SAD-BJP combine government headed by Parkash Singh Badal would adopt vote-on-account due to the fact that that there is very less time for regular customary budget presented usually in March.Notwithstanding the huge debt of the state, he said that in fact centre government has comparatively debt burden on larger scale as compared to the state. Though, he said that major share of the taxes even those collected by the state go to the centre which makes its revenue collection resource on a very wider level. He said that due to this there is a need that states should also get their share from the central tax revenue.
The vote-on-account is usually sought or presented when the government does not have the time to present a full budget. Generally, the vote-on-account is sought for three months which will give the new government time till June to prepare his budget provisions. The vote-on-account becomes mandatory for the state as no funds can be released from April 01 since the previous budget of 2011-12 was only till March 31.
To present a full budget, it takes at least a month's time to prepare the budget provisions.With the Akalis having made lofty promises in their manifesto, it would be interesting to see that the full budget to be presented probably in June would include fulfilling some of its populist measures and raising investments to push the economic growth of the state especially owing to the fact that state's financial health was fragile and vulnerable at the moment.
The new state finance minister Parminder Singh Dhindsa said that state was not confronting any sort of fiscal crisis as was being made out in certain circles..
Notwithstanding the huge debt of the state, he said that in fact centre government has comparatively debt burden on larger scale as compared to the state. Though, he said that major share of the taxes even those collected by the state go to the centre which makes its revenue collection resource on a very wider level. He said that due to this there is a need that states should also get their share from the central tax revenue.
Experts says that as per constitutional arrangements for the distribution of financial powers and functions between the Centre and the States, the division of resources heavily favours the Central government in the bifurcated federal system of country. In view of this, the states like Punjab had been advocating for more share of states in central taxes revenue pool.
For more News visit
Punjab Newsline
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