The central government has released a total of Rs 14,602 crore during this financial year to debt-ridden Punjab government on account of tax from divisible pool to help accelerate the states . Neighbouring Haryana has got Rs 8,832 crore and Rs 6,707 crore had been disbursed to Himachal Pradesh till February.
Sharing details about support extended to states for capital expenditure in the Lok Sabha during thebudget session of Parliament, Union finance ministerNirmala Sitharamanrevealed that Punjab got a total of Rs 73,500-crore tax devolution from the central government since 2017-18. The central government cleared the entire provisional goods and service tax (GST) compensation dues of states and Union Territories (UTs) for 2020-21 financial year and up to May 31, 2022, the minister added.
However, as per the UnionBudgetestimates for the 2023-24 financial year, Punjab is likely to get Rs 18,457 crore from the central government as its share of 1.8% from the net proceeds of central taxes and duties. This includes Rs 5,968 crore from central GST, Rs 5,907 crore out of collected corporation tax, Rs 5,747 crore out ofIncome tax, Rs 585 crore from customs duty, Rs 245 crore of excise duty, and Rs 3 crore out of collected service tax.
The Punjab government would also receive a total of Rs 8,274 crore during the 2022-23 financial year from the central government in 12 equated monthly instalments of Rs 689 crore as post-devolution Revenue Deficit grant as recommended by the 15th Finance Commission. The grant is released to states as per the recommendations of the successive finance commissions to meet the gap in revenue accounts of the states post devolution. Due to poor fiscal Health, the Punjab government has been dependent on central funds to a large extent.