1 of 14

�PUBLIC FINANCE : �REVENUE AND EXPENDITURE� OF �PUNJAB STATE

2 of 14

Fiscal performance�

  • Punjab is on a sustainable fiscal path. In the face of extremely volatile global macroeconomic environment, Punjab has witness growth of 18.8% in revenue receipts and 714.2% in capital outlay as per 2019-20 (RE). Total revenue receipts in 2020-21(BE) is estimated to be Rs. 88,004.31 crores , a growth of 19.0% relative to 2019-20 (RE).

3 of 14

Revenue receipts

Composition of Revenue Receipts

  • Tax revenue has higher share in revenue receipts as compared to that of Non-Tax Revenue Tax revenue collection in 2019-20(RE) was Rs. 44,084.96 crores while non-tax revenue collection stood at Rs. 29,890.12 crores.
  • Own tax revenue, which includes taxes on income, property & capital transactions and commodities & services, accounts for majority of State’s tax revenue.

​

4 of 14

Revenue receipts

  • SGST and sales tax have the largest contribution of 39.8% and 16.0% respectively towards Punjab’s own tax revenue in 2019- 20 (RE).

5 of 14

State’s Own Revenue�

  • State’s own revenue collection increased only by 6.49% in 2019-20 (RE) over the previous year. State’s own revenue stood at Rs. 39,156.57 crores in 2018-19.It increased to Rs. 41,700.84 crores in 2019-20 (RE) and comprised of Rs. 33,739.18 crores of own tax and Rs. 7,961.66 crores of own nontax

6 of 14

Composition of Revenue Receipts

7 of 14

State’s Own Tax Revenue�

  • Sales tax, state excise, taxes on vehicles, taxes & duties on electricity and SGST, together accounted for 92.2% of Punjab’s own tax collection in 2019-20 (RE) while the rest came from taxes on income and taxes on property & capital transactions.
  • The overall growth rate of State’s own tax revenue stood at 6.0% in 2019-20 (RE).

8 of 14

State’s Own Non-Tax Revenue�

Revenue from general services accounted for 66.7% of State’s own non-tax revenue in 2019-20 (RE).

​

Punjab’s own non-tax revenue stood at Rs. 7,961.66 crores in 2019-20 (RE),

9 of 14

State’s Own Non-Tax Revenue�

  • Punjab has the highest own non –tax revenue to GSDP ratio in 2019-20(RE) among select states.
  • Punjab has one of the highest CAGR in revenue receipts between 2015-16 and 2019-20 (RE) among selected states

10 of 14

Composition of State’s Expenditure

Revenue Expenditure

  • Revenue expenditure, composed of expenditure on social, economic and general services as well as grants to local bodies, have more than doubled between 2013-14 and 2019-20 (RE). Revenue expenditure stood at Rs. 86,602.09 crores in 2019-20 (RE). The share of revenue expenditure in total expenditure is estimated to be 89.56 % in 2020-21 (BE).

11 of 14

12 of 14

13 of 14

Trend in State’s Expenditure

14 of 14

​

THANK YOU