Status of Punjab’s revenue system

  • Punjab has got only 43% of its target revenue receipts for 2019 – 2020.
  • Punjab state’s income through GST has increased.
  • Union government has failed to release the state’s share of GST compensation for October – November. (₹ 2000 crore).
  • Punjab’s tax revenue has shown a decline of almost ₹ 3000 crores, whereas the tax on non – tax revenue (road tax and tax on services offered by the government) as shown a 50% decline over last year.
  • The state’s share of central taxes is less as compared with last year.
  • On the other hand, the grants – in – aid received from the Centre is double than the last year.
  • Such issues pertaining to finance of the state brings problems such as:
  • Unpaid salary bills of ₹ 3000 crores.
  • Arrears to employees and pensioners to the tune of ₹2500 crore.
  • The power subsidy of ₹4500 crores.

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