NORTH- Through the Budgetary Glass

Through the Budgetary Glass THE 1973-74 budgets of Punjab and Haryana, presented within a week of each other have some striking similarities. But they also highlight the contrasts between the financial positions of the two states. Both budgets make further attempts at resource mobilisation to cover part of the deficit, and both leave a substantial gap uncovered (Rs 11.60 crores in Punjab, Rs 10 chores in Haryana),) There are the usual expectations of larger Central assistance, of improved collections from existing levies, of further market borrowings, and of economy in expenditure. Both also have the cushion provided by 'underestimation'. The Plan and potential resources'. The Plan performance of both states has been commendable, the expenditure substantially exceeding original estimate5. In the current year alone, Punjab has raised its Plan expenditure from Rs 96.25 crores to Rs 123.33 crores, without a matching grant from the Centre. Similarly, Haryana's total Fourth Plan outlay is expected to be Rs 330 crore, against the original estimates of Rs 225 crores. However, while Punjab has registered continued buoyancy in its revenue receipts, Haryana has lately been suffering from financial stringency.' Punjab does not resort to overdrafts; Haryana has relied excessively on them till last year. Yet the most outstanding fact of all is that both states --which are among the richest in the country