Writeup AP 2011-12 - Punjab State Planning Board

STATE FINANCES
10. The 13 th Finance Commission in its report has recommended a revised roadmap
of fiscal consolidation for Punjab as under:-
Revenue Deficit Path for Punjab
6
(Percent of GSDP)
State 2007-08 2011-12 2012-13 2013-14 2014-15
1 2 3 4 5 6
Punjab 2.9 1.8 1.2 0.6 0.0
Fiscal Deficit Path for Punjab
(Percent of GSDP)
State 2007-08 2011-12 2012-13 2013-14 2014-15
1 2 3 4 5 6
Punjab 3.5 3.5 3.5 3.0 3.0
DEBT - GSDP RATIO
11. The 13 th Finance Commission has set a target for combined debt of centre and
states at 68% of GDP to be achieved by 2014-15, and has recommended that the fiscal
consolidation path should lead to the steady reduction in the debt stock of the centre to 45
percent of GDP by 2014-15 and for the states to less than 25 percent of GDP by 2014-15.
However, no targets have been recommended, for individual states by the commission.
12. The state has followed a prudent debt management policy and managed its
finances within borrowing limits set by Government of India. As a result, debt to GSDP ratio
of state which was as high as 46.52% in 2004-05 has declined to 31.80% in 2009-10. The
Revenue Deficit as percentage of GSDP has declined from 3.51% in 2004-05 to 2.63% in
2009-10. The target for 2010-11(BE) is 1.66%. The Fiscal Deficit as percentage of GSDP
has declined from 4.26% in 2004-05 to 3.09% in 2009-10. The target for 2011-12 (BE) is at
3.45%.