Punjab Budget Analysis

2024-25
The Finance Minister of Punjab, Mr. Harpal Singh Cheema, presented the Budget for the state for the financial year
2024-25 on March 5, 2024.
Budget Highlights
▪ The Gross State Domestic Product (GSDP) of Punjab for 2024-25 (at current prices) is projected to be
Rs 8,02,701 crore, amounting to growth of 9% over the previous year.
▪ Expenditure (excluding debt repayment) in 2024-25 is estimated to be Rs 1,35,051 crore, an increase of
4.3% over the revised estimate for 2023-24. In addition, debt of Rs 69,867 crore will be repaid by the state.
In 2023-24, as per revised estimates, expenditure (excluding debt repayment) is estimated to be Rs 1,29,450
crore, 4% lower than the budget estimate.
▪ Receipts (excluding borrowings) for 2024-25 are estimated to be Rs 1,04,586 crore, an increase of 5.5%
over the revised estimate for 2023-24. In 2023-24, as per revised estimates, receipts (excluding
borrowings) are estimated to be Rs 99,140 crore, 1% lower than the budget estimate.
▪ Revenue deficit in 2024-25 is estimated to be Rs 23,198 crore (2.9% of GSDP). In 2023-24, revenue deficit is
estimated to be Rs 23,812 crore (3.2% of GSDP), lower than the budget estimate (3.5% of GSDP).
▪ Fiscal deficit for 2024-25 is targeted at 3.8% of GSDP (Rs 30,465 crore). In 2023-24, as per the revised
estimates, fiscal deficit is expected to be 4.1% of GSDP, lower than the budget estimate (4.98% of GSDP).
Policy Highlights
▪ School Education: Mission Samrath will be launched to impart essential skills to primary and upper
primary students. 118 government schools will be transformed into Schools of Eminence, and a further 100
government senior secondary schools will be upgraded into Schools of Brilliance. For skill development,
School of Applied Learning will be set up. High-tech vocational labs will be constructed in 40 schools.
▪ Irrigation: A new Malwa canal project will be started, which will provide irrigation coverage to around
1.78 lakh acres in the districts of Bathinda, Faridkot, Ferozepur, and Muktsar.
▪ Agriculture: Punjab Horticulture Advancement and Sustainable Entrepreneurship scheme will be launched
to develop horticulture clusters in major production zones.
▪ Forestry: Human Wildlife Conflict Mitigation Scheme will be launched.

Punjab’s Economy Figure 1: Growth in GSDP and sectors in

▪ GSDP: In 2023-24, Punjab’s GSDP (at constant Punjab at constant prices (2011-12)
prices) is estimated to grow at 6.8%. In 10%
7.9%
7.8%

comparison, national GDP is estimated to grow at

7.4%

7.2%
7.1%
7.0%

8%
6.8%
6.6%

7.6% in 2023-24.
6.4%

▪ Sectors: In 2023-24, agriculture, manufacturing, 6%

and services sectors are estimated to contribute
27%, 27%, and 46% to the economy, respectively 4%
2.7%
2.3%

(at current prices). In 2023-24, the agriculture

1.0%

sector is estimated to grow at 2.3% (at constant 2%

prices). Manufacturing and services sectors are
estimated to grow at 7.9% and 7.2%, respectively. 0%
Agriculture Manufacturing Services GSDP
▪ Per capita income: The per capita income of Sector Sector Sector
Punjab in 2023-24 (at current prices) is estimated at
Rs 1,95,621, higher than per capita income at the 2021-22 2022-23 2023-24
national level (Rs 1,83,236). Note: Agriculture also includes mining and quarrying;
manufacturing also includes construction, and electricity, gas,
▪ Unemployment: As per the Periodic Labour Force water, and other utility services. These numbers are as per
Survey (July 2022-June 2023), unemployment rate constant prices (2011-12) which implies that the growth rate is
in Punjab among all age groups was 6.1%, higher adjusted for inflation.
Sources: Punjab Economic Survey 2023-24; PRS.
than the national level (3.2%).

Saket Surya Tanvi Vipra

[email protected] [email protected] March 8, 2024
PRS Legislative Research ◼ Institute for Policy Research Studies
3rd Floor, Gandharva Mahavidyalaya ◼ 212, Deen Dayal Upadhyaya Marg ◼ New Delhi – 110002
Tel: (011) 2323 4801, 4343 4035 ◼ www.prsindia.org
 Punjab Budget Analysis 2024-25 PRS Legislative Research

Budget Estimates for 2024-25

▪ Total expenditure (excluding debt repayment) in 2024-25 is targeted at Rs 1,35,051 crore. This is an
increase of 4.3% over the revised estimate of 2023-24. This expenditure is proposed to be met through
receipts (excluding borrowings) of Rs 1,04,586 crore and net borrowings of Rs 28,965 crore. Total
receipts for 2024-25 (other than borrowings) are expected to register an increase of 5.5% over the revised
estimate of 2023-24.
▪ Revenue deficit in 2024-25 is estimated to be 2.89% of GSDP (Rs 23,198 crore), lower than the revised
estimate for 2023-24 (3.23% of GSDP). Fiscal deficit for 2024-25 is targeted at 3.8% of GSDP (Rs 30,465
crore), lower than the revised estimate for 2023-24 (4.12% of GSDP).
▪ In 2023-24, as per revised estimates, deficit levels are estimated to be lower than budget estimates. This is
owing to a relatively higher reduction anticipated in the expenditure (4% lower than budgeted) than the
estimated shortfall in receipts (1% lower). Capital outlay is estimated to be 38% lower than budgeted (Rs
3,948 crore less), leading to a lower fiscal deficit. Further, GSDP estimate has been revised upwards from
the budget to the revised stage (5.4% higher), also lowering deficit levels as % of GSDP.
Table 1: Budget 2024-25 - Key figures (in Rs crore)
% change % change
2022-23 2023-24 2023-24 2024-25
Items from BE 23-24 from RE 23-24
Actuals Budgeted Revised Budgeted
to RE 23-24 to BE 24-25
Total Expenditure 1,80,085 1,96,462 1,99,076 1.3% 2,04,918 2.9%
(-) Repayment of debt 58,376 61,626 69,626 13.0% 69,867 0.3%
of which Repayment of Ways and
Means Advances# 42,282 45,000 53,000 18% 57,000 8%
Net Expenditure (E) 1,21,710 1,34,836 1,29,450 -4.0% 1,35,051 4.3%
Total Receipts 1,77,324 1,94,462 1,96,171 0.9% 2,03,418 3.7%
(-) Borrowings 89,544 94,410 97,032 2.8% 98,831 1.9%
of which
Ways and Means Advances# 42,282 45,000 53,000 18% 57,000 8%
Special loan for capex from centre* 0 1,880 272 -85.5% 1,900 598.5%
Net Receipts (R) 87,779 1,00,052 99,140 -0.9% 1,04,586 5.5%
Fiscal Deficit (E-R) 33,930 34,784 30,311 -12.9% 30,465 0.5%
as % of GSDP 5.04% 4.98% 4.12% 3.80%
Revenue Deficit 26,045 24,589 23,812 -3.2% 23,198 -2.6%
as % of GSDP 3.87% 3.52% 3.23% 2.89%
Primary Deficit 14,025 12,784 7,811 -38.9% 6,565 -15.9%
as % of GSDP 2.08% 1.83% 1.06% 0.82%
GSDP 6,73,107 6,98,635 7,36,423 5.4% 8,02,701 9.0%
Note: BE is Budget Estimates; RE is Revised Estimates. #Refers to cumulative value of short-term loans, taken typically multiple times in a
year to meet mismatches between flow of receipts and expenditure, and repaid within a short term.
*The central government has been providing 50-year interest free loan to states for capital expenditure, which are over and above the
permitted borrowing limit for a given financial year.
Sources: Annual Financial Statement, Budget at a Glance, Receipts and Capital Expenditure Budget Books, Punjab Budget 2024-25; PRS.

Expenditure in 2024-25
▪ Revenue expenditure for 2024-25 is proposed to be Rs 1,27,134 crore, an increase of 4% over the revised
estimate of 2023-24. This includes the expenditure on salaries, pensions, interest, grants, and subsidies.
▪ Capital outlay for 2024-25 is proposed to be Rs 7,445 crore, an increase of 16% over the revised estimate
for 2023-24. Capital outlay indicates expenditure towards creation of assets. In 2023-24, as per revised
estimates, total capital outlay is estimated to be 38% lower than the budget estimate. Capital outlay on
roads and bridges is estimated to be Rs 900 crore lower than budgeted (42% lower). Urban development
(Rs 706 crore less), water supply and sanitation (Rs 603 crore less), and irrigation and flood control (Rs 410
crore less) are sectors with a high cut back in capital outlay as compared to the budget estimate in 2023-24.
Table 2: Expenditure budget 2024-25 (in Rs crore)
% change from % change from
2022-23 2023-24 2023-24 2024-25
Items BE 23-24 to RE RE 23-24 to BE
Actuals Budgeted Revised Budgeted
23-24 24-25
Revenue Expenditure 1,13,661 1,23,441 1,22,751 -1% 1,27,134 4%
Capital Outlay 6,667 10,355 6,406 -38% 7,445 16%
Loans given by the state 1,382 1,041 293 -72% 472 61%
Net Expenditure 1,21,710 1,34,836 1,29,450 -4% 1,35,051 4%
Sources: Annual Financial Statement, Punjab Budget 2024-25; PRS.
March 8, 2024 -2-
 Punjab Budget Analysis 2024-25 PRS Legislative Research

Committed expenditure: Committed expenditure of a state typically includes expenditure on payment of

salaries, pensions, and interest. A larger proportion of budget allocated for committed expenditure items limits
the state’s flexibility to decide on other developmental expenditure priorities such as capital outlay. In 2024-25,
Punjab is estimated to spend Rs 78,868 crore on committed expenditure, which is 76% of its estimated revenue
receipts. This comprises spending on salaries (34% of revenue receipts), interest payments (23%), and pension
(19%). In 2022-23, as per actuals, 80% of revenue receipts were spent towards committed expenditure items.
Table 3: Committed expenditure and power subsidy in 2024-25 (in Rs crore)
% change % change % of
2022-23 2023-24 2023-24 from BE 23- 2024-25 from RE 23- Revenue
Head
Actuals Budgeted Revised 24 to Budgeted 24 to Receipts in
RE 23-24 BE 24-25 2024-25
Salaries 32,171 34,620 34,300 -1% 35,168 3% 34%
Interest payment 19,905 22,000 22,500 2% 23,900 6% 23%
Pension 18,214 18,000 18,900 5% 19,800 5% 19%
Total Committed Expenditure 70,290 74,620 75,700 1% 78,868 4% 76%
Power Subsidy 20,200 20,244 20,200 -0.2% 20,200 0% 19%
Note: BE: Budget Estimates; RE: Revised Estimates.
Sources: Annual Financial Statement, Budget at a Glance, Punjab Budget 2024-25; PRS.

Power Subsidy: In 2024-25, the state has estimated to spend Rs 20,200 crore towards power subsidy, which is
19% of its revenue receipts. No increase is estimated in power subsidy in 2024-25, as compared to the revised
estimate for 2023-24 as well as actuals for 2022-23. In 2021-22, the state had spent Rs 13,443 crore towards
power subsidy, which was 17% of its revenue receipts.
Sector-wise expenditure: The sectors listed below account for 52% of the total expenditure on sectors by the
state in 2024-25. See Annexure 1 for a comparison of Punjab’s expenditure on key sectors with other states.
Table 4: Sector-wise expenditure under Punjab Budget 2024-25 (in Rs crore)
% change
2022-23 2023-24 2023-24 2024-25 from RE Budget Provisions
Sector
Actuals Budgeted Revised Budgeted 23-24 to for 2024-25
BE 24-25
Education, ▪ Rs 1,593 crore has been allocated
Sports, Arts, 14,649 17,525 16,397 17,330 6% towards Samagra Shiksha Abhiyan.
and Culture
Agriculture and ▪ Rs 9,330 crore has been allocated
12,601 13,704 13,093 13,660 4% towards power subsidy to farmers.
Allied Activities
Social Welfare ▪ Rs 5,925 crore has been allocated
7,815 8,963 9,177 9,004 -2% towards social security assistance.
and Nutrition
▪ District police has been allocated Rs
Police 8,003 8,528 8,246 8,453 3% 5,325 crore.
▪ Rs 7,780 crore has been allocated
Energy 8,292 7,894 7,836 7,934 1% towards free power to domestic
consumers.
▪ Rs 961 crore has been allocated
Health and towards National Health Mission.
4,782 5,595 5,281 6,171 17%
Family Welfare ▪ Rs 249 crore has been allocated
towards Aam Aadmi Clinics.
▪ Rs 1,672 crore has been allocated
Transport 1,183 2,940 1,989 2,340 18% towards capital outlay on roads and
bridges.
▪ Rs 862 crore has been allocated
Irrigation and towards capital outlay on irrigation and
2,070 2,630 2,166 2,107 -3%
Flood Control flood control.
Water Supply ▪ Rs 620 crore has been allocated
1,463 1,987 1,432 1,549 8% towards rural water supply.
and Sanitation
▪ Rs 611 crore has been allocated for
Welfare of SC, Pradhan Mantri Adarsh Gram Yojna.
ST, OBC, and 809 1,046 1,341 1,505 12%
▪ Rs 245 crore has been allocated for post
Minorities
matric scholarship for scheduled castes.
% of total
expenditure on 51% 53% 52% 52%
all sectors
Sources: Annual Financial Statement, Punjab Budget 2024-25; PRS.

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 Punjab Budget Analysis 2024-25 PRS Legislative Research

Receipts in 2024-25
▪ Total revenue receipts for 2024-25 are estimated to be Rs 1,03,936 crore, an increase of 5% over the
revised estimate for 2023-24. Of this, Rs 70,146 crore (67%) will be raised by the state through its own
resources, and Rs 33,790 crore (33%) will come from the centre. Resources from the centre will be in the
form of state’s share in central taxes (21.2% of revenue receipts) and grants (11.3% of revenue receipts).
▪ State’s own tax revenue: Punjab’s total own tax revenue is estimated to be Rs 58,900 crore in 2024-25, an
increase of 15% over the revised estimate of 2023-24. Own tax revenue as a percentage of GSDP is
estimated at 7.3% in 2024-25, higher than the revised estimate for 2023-24 (6.98% of GSDP). As per the
actual figures for 2022-23, own tax revenue was 6.3% of GSDP.
▪ State’s own non-tax revenue: In 2024-25, the state has estimated to receive Rs 11,246 crore from own
non-tax sources, an increase of 12% over the revised estimate for 2023-24. Own non-tax revenue is
estimated to increase from 0.9% of GSDP in 2022-23 to 1.4% of GSDP in both 2023-24 and 2024-25. In
2023-24, own non-tax revenue is estimated to be 28% higher than the budget estimate, mainly on account
of a higher revenue anticipated under miscellaneous general services (Rs 1,592 crore higher than budgeted).
▪ Grants from the centre in 2024-25 are estimated at Rs 11,748 crore, a decrease of 33% over the revised
estimate for 2023-24. Key reasons for decrease are discontinuation of GST compensation grants, and a
reduction in revenue deficit grants (see box below). In 2022-23, the state had received grants worth Rs
16,143 crore under these two heads, which is estimated to decline to Rs 1,995 crore in 2024-25.
Table 5: Break-up of the state government’s receipts (in Rs crore)
% change from % change from
2022-23 2023-24 2023-24 2024-25
Items BE 2023-24 to RE 2023-24 to
Actuals Budgeted Revised Budgeted
RE 2023-24 BE 2024-25
State's Own Tax 42,243 51,835 51,400 -1% 58,900 15%
State's Own Non-Tax 6,232 7,824 10,051 28% 11,246 12%
Share in Central Taxes 17,164 18,458 19,958 8% 22,041 10%
Grants-in-aid from Centre 21,977 20,735 17,530 -15% 11,748 -33%
Revenue Receipts 87,616 98,852 98,940 0% 1,03,936 5%
Non-debt Capital Receipts 164 1,200 200 -83% 650 225%
Net Receipts 87,779 1,00,052 99,140 -0.9% 1,04,586 5%
BE is Budget Estimates; RE is Revised Estimates.
Sources: Annual Financial Statement, Punjab Budget 2024-25; PRS.
Revenue deficit grant to reduce to zero in 2025-26
▪ In 2024-25, SGST is estimated to be the largest
source of own tax revenue (44% share in own tax As per the recommendations of the 15th Finance Commission, the
central government has been providing post-devolution revenue deficit
revenue). SGST revenue is estimated to increase
grants to 17 states to help eliminate revenue deficit. The Commission
by 14% over the revised estimates of 2023-24. has recommended grants worth Rs 25,968 crore for Punjab over five
SGST revenue is estimated to increase from 2.7% years, 92% of which were to be provided by 2023-24 itself.
of GSDP in 2022-23 (as per actuals) to 3.2% of
GSDP in 2024-25 (as per budget estimates). The revenue under this account was Rs 10,081 crore in 2021-22 and
Rs 8,274 crore in 2022-23, comprising 13% and 9% of revenue
▪ In 2024-25, state excise and sales tax/VAT are receipts, respectively. The grant reduces to Rs 5,618 crore in 2023-
estimated to be the next two largest sources of 24 (6% of revenue receipts), and further to Rs 1,995 crore in 2024-25
revenue after SGST. Revenue from these taxes is (2% of revenue receipts). No grants under this account will be
estimated to increase by 5% and 14%, respectively provided in 2025-26. This gap left in revenue will have to be met by
either augmenting own sources of revenue or containing expenditure.
over the revised estimates for 2023-24.
Note that Punjab has not been able to eliminate revenue deficit in any
of these years, even after accounting for these grants.

Table 6: Major sources of state’s own-tax revenue (in Rs crore)

% change from % change from
2022-23 2023-24 2023-24 2024-25
Head BE 23-24 to RE RE 23-24 to BE
Actuals Budgeted Revised Budgeted
23-24 24-25
State GST 18,128 23,000 22,500 -2% 25,750 14%
State Excise 8,437 9,785 9,900 1% 10,350 5%
Sales Tax/ VAT 5,637 7,600 7,500 -1% 8,550 14%
Stamps Duty and Registration Fees 4,227 4,750 4,600 -3% 5,750 25%
Taxes on Vehicles 2,674 3,450 3,300 -4% 4,350 32%
Taxes and Duties on Electricity 2,888 2,750 3,100 13% 3,500 13%
Land Revenue 93 200 120 -40% 230 92%
GST Compensation Grants 7,869 5,402 4,761 -12% - -100%
Sources: Annual Financial Statement, Receipt Budget Book, Punjab Budget 2024-25; PRS.

March 8, 2024 -4-

 Punjab Budget Analysis 2024-25 PRS Legislative Research

Deficits and Debt Targets for 2024-25

The Punjab Fiscal Responsibility and Budget Management Act, 2003 provides annual targets to progressively
reduce the outstanding liabilities, revenue deficit and fiscal deficit of the state government.
Revenue deficit: It is the difference of revenue expenditure and revenue receipts. A revenue deficit implies
that the government needs to borrow to finance those expenses which do not increase its assets or reduce its
liabilities. Revenue deficit of Rs 23,198 crore (2.9% of the GSDP) is estimated in 2024-25. The state has
persistently observed a revenue deficit since 2019-20. The state is projected to continue incurring a revenue
deficit in both 2025-26 and 2026-27 (more than 2% of GSDP).
Fiscal deficit: It is the excess of total expenditure Financial performance of state public sector enterprises
over total receipts. This gap is filled by borrowings
As of March 2022, there were 49 state public sector enterprises
by the government and leads to an increase in total
(SPSEs) in Punjab under the audit purview of CAG. Their
liabilities. In 2024-25, the fiscal deficit is estimated aggregate turnover was about 12% of Punjab’s GSDP in 2021-22.
to be 3.8% of GSDP. For 2024-25, the central 16 SPSEs are inactive, out of which four are under liquidation.
government has permitted fiscal deficit of up to 3.5%
of GSDP to states, of which 0.5% of GSDP will be As per CAG (2022), 12 SPSEs registered profit in 2021-22. Their
aggregate profit was Rs 1,711 crore. 94% of the profit was
available only upon carrying out certain power sector
contributed by three SPSEs: (i) Punjab State Power Corporation
reforms. Any unutilised fiscal deficit limit from Limited (63% of the total), (ii) Punjab State Warehousing
years since 2021-22 may also be utilised in Corporation (18%), and (iii) Punjab State Power Transmission
subsequent years. In addition, the central Corporation Limited (13%).
government has been providing 50-year interest free
In 2021-22, 17 SPSEs registered losses. Their losses on
loan for capital expenditure over and above the
aggregate were Rs 441 crore. Their total accumulated losses
yearly borrowing limit since 2020-21. In 2024-25, since their inception till the end of 2021-22 were Rs 7,792 crore.
Punjab has budgeted a receipt of Rs 1,900 crore on In 2021-22, losses worth Rs 396 crore were attributed to three
this account. agriculture sector SPSEs: (i) Punjab State Grains Procurement
Corporation Limited, (ii) Punjab State Civil Supplies Corporation
In 2022-23, as per actuals, fiscal deficit was 5.0% of
Limited, and (iii) Punjab Agro Foodgrains Corporation Limited.
GSDP, significantly higher than the budget estimate
of 3.8% of GSDP (see Table 7 in Annexure 2). Fiscal deficit is projected to be lowered to 3.2% of GSDP by
2026-27.
Outstanding liabilities: Outstanding liabilities are the accumulation of total outstanding borrowings at the end
of a financial year, these also include any liabilities on public account. At the end of 2024-25, the outstanding
liabilities are estimated to be 44.1% of GSDP, marginally higher than the revised estimate for 2023-24 (43.9%
of GSDP). Outstanding liabilities are estimated to decline to 42.8% of GSDP at the end of 2026-27.
Figure 2: Revenue and Fiscal Balance (% of GSDP) Figure 3: Outstanding Liabilities (as % of GSDP)
0% 60%
50% 46.2% 44.7% 43.6% 43.9% 44.1% 43.4%
42.7% 42.8%
-2% 40%
-2.0%
-2.5% 30%
-2.9% -2.9% -2.7%
-4% -3.3% -3.2% -3.2% -3.2% 20%
-3.9% -3.8% -3.7%
-4.3% -4.1% 10%
-4.8%
-5.0% 0%
-6%
2019-20

2020-21

2022-23

2024-25 BE

2025-26*

2026-27*
2023-24 RE
2025-26*

2026-27*
2019-20

2020-21

2022-23

2024-25 BE
2023-24 RE

2021-22
2021-22

Revenue Balance Fiscal Balance Note: *Figures for 2025-26 and 2026-27 are projections; Liabilities
above exclude GST compensation loans, which is to be repaid by the
Note: *Figures for 2025-26 and 2026-27 are projections. Negative
central government. RE is Revised Estimates; BE is budget
sign (-) indicates a deficit. RE is Revised Estimates; BE is budget
estimates.
estimates.
Sources: FRBM Statements, Punjab Budget 2024-25; PRS.
Sources: FRBM Statements, Punjab Budget 2024-25; PRS.

Outstanding Government Guarantees: Outstanding liabilities of states do not include a few other liabilities
that are contingent in nature, which states may have to honour in certain cases. State governments guarantee the
borrowings of State Public Sector Enterprises (SPSEs) from financial institutions. At the end of March 2024,
the state’s outstanding guarantee is estimated to be Rs 22,036 crore, which is 3% of Punjab’s GSDP in 2023-24.
75% of the total guarantee is estimated to have been extended to Punjab State Power Corporation Limited.
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March 8, 2024 -5-
 Punjab Budget Analysis 2024-25 PRS Legislative Research

Annexure 1: Comparison of states’ expenditure on key sectors

The graphs below compare Punjab’s expenditure in 2024-25 on six key sectors as a proportion of its total
expenditure on all sectors. The average for a sector indicates the average expenditure in that sector by 31 states
(including Punjab) as per their budget estimates of 2023-24.1
▪ Education: Punjab has allocated 12.9% of its total expenditure towards education, which is lower than the
average allocation for education by states (14.7%).
▪ Agriculture: Punjab has allocated 10.1% of its expenditure towards agriculture. This is significantly
higher than the average allocation towards agriculture by states (5.9%).
▪ Health: Punjab has allocated 4.6% of its expenditure on health in 2023-24. This is lower than the average
allocation for health by states in 2022-23 (6.2%).
▪ Roads and bridges: The state has allocated 1.4% of its total expenditure towards roads and bridges, which
is lower than the average allocation by states (4.6%).
▪ Police: Punjab has allocated 6.3% of its expenditure towards police. This is significantly higher than the
average allocation towards police by states (4.2%).
▪ Urban development: Punjab has allocated 1% of its expenditure towards urban development, which is
significantly lower than the average allocation towards urban development by states (3.4%).

Spending on education as a Spending on agriculture as a Spending on health as a %

% of total expenditure % of total expenditure of total expenditure
20% 12% 10.5% 10.2% 10.1% 10.1% 8%
14.7% 6.2%
10%
15% 12.2% 13.1% 12.7% 12.9% 6% 4.6%
8%
5.9% 4.0% 4.2% 4.1%
10% 6% 4%

5% 4% 2%
2%
0% 0%
0%
2022-23

2022-23
2023-24 (RE)

2023-24 (RE)
2023-24 (BE)

2023-24 (BE)

2024-25 (BE)
2024-25 (BE)
Average of all states

Average of all states

2022-23

2023-24 (RE)
2023-24 (BE)

2024-25 (BE)

Average of all states

(2023-24 BE)

(2023-24 BE)
(2023-24 BE)

Spending on roads and Spending on police as a % of Spending on urban

bridges as a % of total total expenditure development as a % of
expenditure total budget
8%
6.7% 6.4% 6.4% 6.3%
6% 4% 3.4%
4.6% 6%
4.2% 3%
4% 2.0% 2.0%
4%
2% 1.4%
1.8% 1.0%
2% 1.1% 1.4% 2% 1%
0.7%
0%
0% 0%
2022-23

2023-24 (RE)
2023-24 (BE)

2024-25 (BE)
Average of all states
2022-23

2022-23
2023-24 (RE)

2023-24 (RE)
2023-24 (BE)

2024-25 (BE)

2024-25 (BE)
Average of all states

2023-24 (BE)

Average of all states

(2023-24 BE)
(2023-24 BE)

(2023-24 BE)

Note: 2022-23, 2023-24 (BE), 2023-24 (RE), and 2024-25 (BE) figures are for Punjab.
Sources: Annual Financial Statement, Punjab Budget 2024-25; various state budgets; PRS.

1
The 31 states include the Union Territories of Delhi, Jammu and Kashmir, and Puducherry .

March 8, 2024 -6-

 Punjab Budget Analysis 2024-25 PRS Legislative Research

Annexure 2: Comparison of 2022-23 Budget Estimates and Actuals

The following tables compare the actuals of 2022-23 with budget estimates for that year.
Table 7: Overview of Receipts and Expenditure (in Rs crore)
Particular 2022-23 BE 2022-23 Actuals % change from BE to Actuals
Net Receipts (1+2) 96,078 87,779 -9%
1. Revenue Receipts (a+b+c+d) 95,378 87,616 -8%
a. Own Tax Revenue 45,588 42,243 -7%
b. Own Non-Tax Revenue 6,302 6,232 -1%
c. Share in central taxes 14,757 17,164 16%
d. Grants-in-aid from the Centre 28,731 21,977 -24%
Of which GST compensation grants 9,078 7,869 -13%
2. Non-Debt Capital Receipts 700 164 -77%
3. Borrowings 55,051 89,544 63%
Net Expenditure (4+5+6) 1,19,913 1,21,710 1%
4. Revenue Expenditure 1,07,932 1,13,661 5%
5. Capital Outlay 10,981 6,667 -39%
6. Loans and Advances 1,000 1,382 38%
7. Debt Repayment 35,946 58,376 62%
Revenue Deficit 12,554 26,045 107%
Revenue Deficit (as % of GSDP) 2.0% 3.9% -
Fiscal Deficit 23,835 33,930 42%
Fiscal Deficit (as % of GSDP) 3.8% 5.0% -
GSDP 6,29,834 6,73,107 7%
Source: Punjab Budget Documents of various years; PRS.

Table 8: Key Components of State's Own Tax Revenue

Tax Head 2022-23 BE 2022-23 Actuals % change from BE to Actuals
Land Revenue 150 93 -38%
State Excise 9,648 8,437 -13%
State GST 20,550 18,128 -12%
Sales Tax/ VAT 6,250 5,637 -10%
Taxes on Vehicles 2,575 2,674 4%
Taxes and Duties on Electricity 2,550 2,888 13%
Stamps Duty and Registration Fees 3,600 4,227 17%
Source: Punjab Budget Documents of various years; PRS.

Table 9: Allocation towards Key Sectors

Sector 2022-23 BE 2022-23 Actuals % change from BE to Actuals
Transport 1,857 1,183 -36%
of which Roads and Bridges 1,500 816 -46%
Water Supply and Sanitation 2,374 1,463 -38%
Housing 584 370 -37%
Welfare of SC, ST, OBC, and Minorities 1,212 809 -33%
Rural Development 1,604 1,156 -28%
Urban Development 3,188 2,390 -25%
Irrigation and Flood Control 2,547 2,070 -19%
Health and Family Welfare 5,600 4,782 -15%
Education, Sports, Arts, and Culture 15,654 14,649 -6%
Social Welfare and Nutrition 7,595 7,815 3%
Police 7,705 8,003 4%
Agriculture and Allied Activities 11,239 12,601 12%
Energy 6,406 8,292 29%
Source: Punjab Budget Documents of various years; PRS.

March 8, 2024 -7-