Key Features of Budget 2011-12

Major Fiscal indicators

• Total size of the Budget is Rs. 48594.85 crore.
• Revenue Receipts are Rs. 32026.76 crore.
• Revenue Expenditure is Rs.35405.75 crore.
• Revenue Deficit is Rs. 3378.99 crore.
• Revenue Deficit is 1.33% of GSDP (Gross State Domestic
Product) against 1.80% recommended by Thirteenth Finance
Commission for Punjab.
• Capital Expenditure is Rs.5418.34 crore.
• Fiscal Deficit is Rs. 8801.33 crore.
• Fiscal Deficit is 3.45% of GSDP (Gross State Domestic Product)
against 3.50% recommended by Thirteenth Finance
Commission for Punjab.
• Total size of the Annual Plan is Rs. 11500 crore.

State of Economy
• State achieved growth rate of 9.25%, 6.55% and 7.84%
in 2007-08, 2008-09 and 2009-10 as per the new series of
National Accounts Statistics introduced by the Central
Statistical Organization in June, 2010 with base year 2004-05.
The corresponding figures for National Growth Rate are 9.34%,
6.76% and 7.96%. Thus,Punjab is now among fastest growing
States of the Country and its growth rate is practically equal to
National Average.
• As per Advance Estimates for 2010-11, the State is expected to
grow at 7.78% against National average of 8.58%.
• The growth rate of the Primary Sector which was 1.94% in
2005-06 and 2.78% in 2006-07 improved to 3.89% in 2007-
08. In 2008-09, the Primary sector of the State grew at 2.40%
against the National Average of only 0.04%.
• The Secondary or Manufacturing Sector in the State grew at
7.77% in 2005-06 and 11.22% in 2006-07. Its growth improved
to 17.20% in 2007-08.
 • Due to global recession, the growth rate of Secondary Sector
was only 6.51% in 2008-09. After the end of the global
recession, the growth in Manufacturing Sector has again picked
up and the Secondary Sector recorded a growth rate of 11.99%
against National Average of 8.06% in 2009-10.
• The Tertiary (Services) Sector recorded growth rate of 4.73%
in 2005-06 and 8.45% in 2006-07. The Tertiary Sector grew at
7.63%, 9.31% and 9.10% in 2007-08, 2008-09 and 2009-10
respectively. It is expected to grow at 9.41% in 2010-11.
• The per capita income of the State at 2004-05 prices is
expected to increase from Rs. 43539 in 2009-10 to Rs. 46182 in
2010-11 indicating a growth rate of 6.07%. The per capita
income at current prices is estimated to increase from Rs. 62153
in 2009-10 to Rs.70072 in 2010-11 showing an increase of
12.74%.

State Finances
• The growth rate of State’s own Tax Revenue which was only
0.31% in 2006-07, improved to 9.78% in 2007-08, 12.64% in
2008-09, 7.98% in 2009-10 and to 44.49% in 2010-11 (RE).
• The 2011-12 (BE) project growth rate of 17.31% in State’s own
Tax Revenue.

• Despite the implementation of recommendations of Pay

Commission for employees and pensioners and part payment of
arrears to pensioners, the committed expenditure on Salaries
and Wages, Pensions and Retirement Benefits and Interest
Payments as percentage of Revenue receipts (Lotteries net) is
likely at 75.30 % as per 2010-11 (RE) and 74.14 % as per 2011-12
(BE).
• The outstanding debt of Punjab for 2010-11 (RE) is Rs.69,549
crore which is30.40% of GSDP of the State. Similarly, the
outstanding debt for the year 2011-12 (BE) is estimated at
Rs.77585 crore which will be 30.43% of GSDP of the State
against debt to GSDP ratio of 41.80% recommended by the
13th Finance Commission for Punjab.
 • Interest payments pre-empted Rs. 5011 crore in 2009-10 which
will increase to Rs. 5499 crore in 2010-11(RE) and further to
Rs.6530 crore in 2011-12.

Annual Plan
• Approved Annual Plan outlay for the current year (2010-11) is
Rs. 9150 crore. Against this outlay the implementation is likely
at Rs.8931 crore as per 2010-11 (Revised Estimates).
• The Annual Plan for the year 2011-12 amounts to Rs. 11,500
crore, after aggregating the budgetary and extra-budgetary
resources. This is the highest ever in the history of the State and
marks a 25.68% increase over the current year’s plan.
• The Plan focuses on Power, Irrigation, Infrastructure, Human
Resource Development, greater stress on welfare of Scheduled
Castes and other weaker sections of the Society, development of
agriculture, development of rural and urban areas, improved
Health and Medical Services, etc.
• Some of the Sectoral allocation for 2011-12 are:-

Infrastructure
o Rs. 986 crore including Rs. 626 crore as State Plan Budget
is proposed to be spent on road infrastructure and
Transport in 2011-12.
o Rs. 916 crore for creation of Infrastructure by Punjab
Infrastructure Development Board (PIDB).
o Rs. 3300 crore for the Power Sector which is about 30% of
the total plan outlay for 2011-12.
o Rs. 1030 crore for Irrigation and Flood Control - an
increase of 59.68%.

Agriculture
o Rs. 453 crore for Agriculture and Allied Sectors – an
increase of 36.99%.
o The State shall give a renewed emphasis to agricultural
research and development by providing an allocation of
Rs. 25 crore to Punjab Agriculture University in the year
 2011-12. This is apart from the normal grant-in-aid of Rs
85 crore which is being provided on the non-Plan side.

Rural Development
o The State Government allocated Rs. 133 crore for
construction of rural toilets in the State in the current
year. A sum of Rs. 220 crore has been earmarked for this
purpose for the year 2011-12.
o A sum of Rs. 200 crore is proposed to be spent in 2011-12
for cleaning of village ponds.
o A sum of Rs. 200 crore has been provided for
construction/brick paving of passages/ drains in
villages/dhanis in Annual Plan 2011-12.

Education
o The outlay for the sector has been increased by 52%. A
sum of Rs. 1441 crore has been earmarked for various
schemes for 2011-12.
o Rs.60 crore for providing furniture in all Government
primary schools in the State in one go, so as to provide
basic amenity that was missing in our schools since
independence.
o Rs. 9 crore for providing free utensils in all schools that
have been covered under the Mid-Day-Meal Scheme.
o The girl students are presently not being charged any
tuition fee in Government schools upto Class
10th.
However, they are still required to make a contribution
towards some local funds being administered by the
schools. To make the education of the girls genuinely free
up to class 12th, it is proposed to provide Rs.26 crore so
that their education till class 12th becomes ‘free’ in actual
sense of term.
o Government has proposed a new Plan scheme, to be called
“Mai Bhago Vidya Scheme” with an outlay of Rs 75 crore,
to provide free bicycles to all girl students studying in
classes 11th and12th in all Government schools. This
scheme shall be implemented on a continued
basis. Resources permitting, Government shall strive to
extend this scheme to all girl students studying in 9th and
10th classes.
o The State Government is already supplying free text books
to all students and free uniforms to all SC and BPL
students upto class 8 in Government schools. To make
the elementary education truly free in the spirit of the
Right to Education Act, it is proposed to also extend this
facility of free uniforms to the children of Backward
Classes/Castes (BCs) and economically weaker families,
with annual income up to Rs 30,000. To commemorate
the sacrifice of Bhai Jaita ji (Shaheed Baba Jiwan Singh
ji), this scheme with an outlay of Rs 16 crore shall be
named after him.
o The State Government, subject to legal advice, also intends
to restore the pension to the teachers of the State-Aided
schools, who were deprived of the same by the previous
Government, by incorporating a provision in the statutory
rules.

Higher Education
o Rs.229 crore for Higher Education and Languages in the
Annual Plan 2011-12 which is an increase of 264% over
the year 2010-11.
o With a view to strengthen Languages Department, its Plan
and non-Plan allocation for the year 2011-12 is being
doubled from the current levels to Rs. 2.88 crore and Rs.
12.09 crore respectively. It is also proposed to allocate Rs
30 lakh to the Languages Department of the State for
setting up its own printing unit.
o 17 new post graduate degree colleges are being set up in
the educationally backward districts where Gross
Enrolment Ratio is low and shall be made functional from
July, 2011. While the capital contribution for the
construction of these colleges has already been provided,
Rs. 1.5 crore per college per annum shall be provided to
each university to run these colleges at affordable fees.
o Grant-in-aid
to Punjabi University, Guru Nanak Dev University and
Guru Angad Dev University of Veterinary Sciences, which
is being provided on non-plan side of this budget, has
been increased by 50%.
o The existing Government degree colleges shall be provided
funds on a lasting basis to re-furbish and upgrade their
infrastructure. An amount of Rs. 70 crore is being
provided in the year 2011-12 for this purpose.

Sports & Youth Services

o Rs 142 crore, shall be earmarked for Sports and Youth
Services, out of which Rs 22 crore shall be out of
budgetary sources for the construction/ upgradation of 6
hockey stadiums, 7 multipurpose stadiums and the Centre
of Excellence in Sports at Jalandhar. To be dedicated to
the pious memory of Sahibzada Ajit Singh.
o Government intends to institute scholarships worth
Rs.10,000 per annum for top 1100 sportspersons covering
all the eleven recognized sports disciplines. Similarly,
1100 scholarships worth Rs 5000 per annum shall be
instituted in the memory of Sahibzada Fateh Singh for the
junior sportspersons below the age of 16 years. These two
schemes shall be earmarked Rs 16.5 crore.
o To further promote the culture of physical fitness, the
Government shall be distributing gymnasium equipment
throughout the State, at an outlay of Rs 15 crore. This
scheme shall be named after Sahibzada Jujhar Singh.
o Another Rs 10 crore shall be earmarked for distribution of
sports equipment, material and kits etc., in the memory
of Sahibzada Zorawar Singh.

Tourism and Art & Culture

o Rs. 1.50 crore for promoting cultural, artistic and literary
activities
of Punjab Lalit Kala Academy, PunjabSangeet Natak Acad
emy and Punjab Sahitya Academy.
o Rs. 2 crore grant to Punjabi Sahitya Academy, Ludhiana,
established in 1954, to add Sai Miya Mir Bhawan to
Punjabi Bhawan Ludhiana for housing its library and
other allied activities.
o Capital grant of Rs. 2 crore to The Anad Foundation, New
Delhi for setting up an institute dedicated to study of
devotional music at Sultanpur Lodhi.
o Rs 25 lakh are being earmarked for the promotion of
classical music tradition associated with Baba Harvallabh
Sangeet Sammelen.
o Rs 1 crore to the North Zone Cultural Centre to fulfil its
objectives.
o Rs 40 lakh would be earmarked for other not-for-profit
societies and institutions engaged in the promotion of
Punjabi Language, literature and cultural activities in the
State. Out of this, Rs 5 lakh each would to allocated to
Punjab Jagriti Manch, Jalandhar; Punjabi Bhasha
Academy, Jalandhar; Punjabi Kendri Lekhak Sabha
(Regd.); Punjabi Lekhak Sabha (Sekhon); Chandigarh
School of Drama, Chandigarh; Manch Rang Manch,
Amritsar; Punjab Gatka Association (Regd.), and Sarang
Lok, Mohali.

Health
o A sum of Rs. 720 crore is proposed to be spent by the Health
Department.
 o The BPL families are being provided health care free of cost
in all Secondary Level Government Hospitals. It is
proposed to extend this benefit to the Backward Classes/
Castes (BCs) and economically weaker families whose
family income is below Rs. 30000/- per annum. An
amount of Rs 25 crore shall be provided for this purpose by
the state exchequer. This initiative is expected to benefit an
additional 14 lac families.
o Announced in-principle approval of the cashless medical
insurance scheme for all members of the Police
Department, providing free indoor treatment up to Rs 2 lac
per annum to them and their dependent family members. A
budgetary provision of Rs. 25 crore is being made for this
purpose.
o The Emergency Medical Response Service would be made
functional by 31st March, 2011. A total of 240 ambulances
would be deployed in phases (90 ambulances by March
2011, 64 by May 2011 and remaining 86 by July 2011)
across the State. These ambulances would be available
within 20 minutes of an emergency call from anywhere in
the State by dialling a toll free number 108. The total cost of
the project is Rs. 70 crore.
o The number of institutional deliveries in Government
hospitals has increased by 3 times during the last 3 years.
To further encourage institutional deliveries, Government
has announced a new Plan scheme, to be called “Mata
Kaushalaya Kalyan Scheme”, with an outlay of Rs. 12 crore
to provide Rs 1000/- cash incentive to all mothers who
undergo institutional deliveries in Government hospitals.
o Rs 20 crore shall be earmarked for the seed Corpus of a
Cancer Relief Fund, dedicated to the welfare of cancer
patients.
Industries
o The State Government has spent Rs. 30 crore for upgradation
of industrial focal points upto 2010-11. A sum of Rs. 10 crore
will be spent during 2011-12 for this purpose. Similarly, an
allocation of Rs.16 crore is being provided during 2011-12 for
NIIFT Mohali .

Social Security

o Outlay for Social Security has been increased by 24% to

Rs.924 crore. A sum of Rs. 591 crore has been earmarked for
old age and other pensions to 19.70 lac beneficiaries.
Besides, 1.84 lac BPL beneficiaries would receive an
additional pension under National Social Assistance
Programme.
o It is proposed to lower the qualifying age limit for old-age
pension in case of women to 58 years from 60 years at
present.
o A new scheme to be called “Bebe Nanki Ladli Beti Kalyan
Scheme” for providing benefit of Rs 15,000 at the birth of a
girl child. This amount shall be invested in the name of the
child with the Life Insurance Corporation of India and
enhanced payments shall be made available to the girl at
various stages of her life. A budgetary allocation of Rs.16.50
crore is accordingly being made. This benefit shall, however,
be restricted only upto two girls per family.

Welfare of Scheduled Castes/Backward Classes

o An outlay of Rs. 275 crore has been earmarked for welfare of
Scheduled Castes/Backward Classes.
o In addition to providing shagun of Rs. 15000/- to SCs and
Christian girls, the Government has decided to effect a
quantum increase in the coverage of this scheme by
extending it to girls belonging to the Backward Classes/
Castes (BC), and other economically weaker families, with a
new overall income limit of Rs 30,000/- per annum. The
new income limit shall also become prospectively applicable
 to the SC and Christian girls/ families. A substantially
increased sum of Rs. 130 crore is, therefore, being earmarked
for shagun scheme in the Annual Plan 2011-12.
o To meet the long standing demand of different communities,
Ravidas Bhawan, Valmiki Bhawan and Masih Bhawan,
dedicated to our great saints and prophets, shall be
constructed during 2011-12.
o Rs. 2 crore shall be also earmarked for the integrated
development of the holy Ram Tirath in Amritsardistrict,
which houses the Maharishi Valmiki sthall.
o A memorial in the honour of Guru Ravi Das ji at village
Khuralgarh in Hoshiarpur district shall also be constructed,
apart from the integrated development of the village, at a
cost of Rs 10 crore.
o Attendance scholarship at the Primary School level shall now
be extended to all girl students, students of Backward Classes
and Castes (BCs) and economically weaker students with a
family income less than Rs 30,000 per annum.

Pension to Freedom Fighters

o The pension of freedom fighters and the families was
increased from Rs. 3000/- per month to Rs.4250/- per
month in 2010-11. It is proposed to further increase it to
Rs.5,000/- per month.

Defence Services Welfare

o Rs. 2.00 crore for providing grant of Rs. 5 lac each for
purchase of plot or house for the widows of martyrs or
disabled soldiers.
o Rs. 6 crore for construction of Sainik Rest House
and Maharaja Ranjit Singh War Museum, Ludhiana.
o It has been decided to raise allowances of all our war
decorated soldiers by 40%.
o Rs.13 crore for defence service welfare in Annual Plan 2011-
12.
Employment Generation and Skill Development
o Maharaja Ranjit Singh Armed Forces Preparatory Institute is
being established at Mohali to prepare students for NDA
exam. A sum of Rs. 15 crore has been provided as corpus
for this purpose in 2011-12.