Punjab unlikely to spend 100% of annual plan for 2012-13

CHANDIGARH: Punjab government is unlikely to spend 100 per cent of its annual plan, amounting to Rs 14,000 crore for 2012-13, for the second fiscal in a row, a senior official of state finance department said.

Having spent just 50 per cent of Rs 14,000-crore annual plan so far, Punjab government is now hoping to utilise 75 per cent of the plan size by end of March.

"We have spent 50 per cent of the annual plan so far (for 2012-13) ... we hope we will achieve 75 per cent (of the plan) by end of March 31, 2013," said the official, who did not want to be named.

Officials of the finance department attributed the low utilisation of annual plan to "fiscal constraints" as well as late presentation of last budget due to elections.

Punjab government had earmarked maximum funds for social services, followed by energy at Rs 5,395 crore and Rs 3,314 crore, respectively in the 2012-13 annual plan.

Low utilisation of plan means less money will be spent on a range of sectors which were earmarked during approval of the outlay.

Notably, Punjab government during 2011-12 could also not spend 100 per cent of the annual plan which was approved at Rs 11,520 crore. However, the outlay in the plan was again revised downward to Rs 9,702.46 crore.

The state could spend actually Rs 7,457.45 crore in 2011-12 which was just 65 per cent of approved outlay and 76 per cent of revised outlay.

During last fiscal, Punjab government could not spend a single penny on dairy development, fisheries, non-conventional sources of energy against the revised outlay of Rs 6.50 crore, Rs 4.83 crore and Rs 3 crore. On crop husbandry, state spent just Rs 74.45 crore against outlay of Rs 162.82 crore.

"Mounting" committed expenditure including salary, pension and debt servicing has been a major worry for fund-starved Punjab as these expenditures "consume" over 80 per cent of state's revenue, leaving less money for spending on boosting development activities.

Considering the non-achievement of full annual plan outlay expenditure, Punjab government has decided to fix lower annual plan for 2013-14 at Rs 15,500 crore which is just 11 per cent more than what was approved outlay for 2012-13.

The annual plan of 2012-13 was over 20 per cent higher than the approved outlay of Rs 11,520 crore for 2011-12.

The proposed annual plan of Punjab is also lower than Haryana's proposed annual plan of Rs 17,650 crore for 2013-14.