As per the Planning Commission, in the 11th Five-Year Plan (2007-12), Punjab will be among the least growing states in the country. The state’s GDP growth rate of 5 per cent stands nowhere in comparison to the 14 per cent growth rate of neighbouring Haryana.
“The consumption patterns in Haryana are no different from Punjab, but its VAT collections are far ahead of us. It’s a clear case of tax evasion in Punjab,” the Finance Minister maintained.
Pushed to the wall, the state is now thinking of various plans for additional resource mobilisation. Besides, there is a genuine debate about subsidies in the Cabinet. Whether this debate will lead to any improvement in the condition or not remains to be seen.