The overall
economy of Punjab has shown a growth rate of 6.29 percent during
2003-04 (P) and 5.39 percent during 2004-05 (Q).
The Gross State Domestic Product (GSDP) at Constant (1993-94) prices
has been estimated during 2004-05 as Rs.48532 crores (Q) and the
provisional estimates of GSDP for the year 2003-04 is as Rs. 46049
crores.
The
GSDP from Primary sector which comprises of agriculture and allied
sectors viz. livestock, forestry and fishing has increased from
Rs.17173crores (P) in 2003-04 to Rs.17992(Q) crores during 2004-05
showing a growth rate of 4.77(Q) percent at constant prices as
against 6.23 (P) percent in 2003-04.
The
GSDP from the secondary sector which covers the manufacturing,
construction and power sector has increased from Rs.10897crores(P)in
2003-04 to Rs.11395(Q) crores in 2004-05 showing a growth rate of
4.57 percent at constant (1993-94) prices, which is almost the same
as was in the last year(2003-04).
The
GSDP in tertiary sector which includes trade, transport, banking and
insurance, real estate, public administration and other services
sector has increased to Rs.19146(Q) crores in 2004-05 as
compared to Rs.17980(P) crores during 2003-04 at constant (1993-94)
prices. Tertiary sector has a growth rate of 6.48 (Q) percent during
2004-05 as against a growth rate of 7.43 (P) percent during 2003-04.
The
Per Capita Income at constant (1993-94) prices has been estimated at
Rs. 16756 (Q) during 2004-05 as against Rs.16119 (P) during 2003-04
registering an increase of 3.95 percent. The per capita income at
current prices has been estimated at Rs. 30701(Q) in 2004-05 as
against Rs.28607 (P) in 2003-04 showing an increase of 7.32 percent.
The
structural composition of the State’s economy has witnessed
progressive changes since the base year 1993-94. The share of
agriculture (proper) sector in GSDP has declined from 33.06 percent
in 1993-94 to 24.54 (Q) percent in 2004-05. The share of primary
sector which includes agriculture and livestock has come down from
46.13 percent in 1993-94 to 37.07(Q) percent in 2004-05. The share
of secondary sector has increased from 21.77 percent in 1993-94 to
23.48(Q) percent in 2004-05 which is mainly due to increase in
contribution from construction sector. The share of tertiary sector
which comprises of services sector along with trade, transport,
banking and insurance and public administration has increased from
32.10 percent in 1993-94 to 39.45(Q) percent in 2004-05. This growth
is mainly due to increase in contribution from transport, storage
& communication sector and banking & insurance sector. It is
evident from above analysis that structurally Punjab’s economy is
following a good trend under which the share of agricultural sector
in GSDP is declining and share of secondary and tertiary sectors is
increasing. Diversification of Wheat paddy rotation in the cropping
pattern have already been initiated by the Govt. through contract
farming.
The
estimates of capital formation provide an indicator of the magnitude
and growth of productive potential of the economy and these are also
important in the context of planning and economic development. In
Punjab, the Gross State Domestic Capital Formation (G.S.D.C.F) at
current prices was Rs.13624 (P) crores during the year 2003-04. The
estimates of G.S.D.C.F. in Punjab for public and private sectors at
current prices are Rs.4891 (P) crores and Rs.8733 (P) crores
respectively during 2003-04. The major capital was formed by
manufacturing sector to the tune of Rs.4748 (P) crores. The
percentage share of manufacturing sector was 34.85 percent, trade
hotels & restaurants was 18.51 percent and for agricultural
sector was 14.39 percent during 2003-04 in the total G.S.D.C.F. The
G.S.D.C.F was Rs.13134(R) crores during the year 2002-03.
The
total production of food grains has increased from 247.24 lakh
metric tons in 2003-04 (P) to 256.62 lakh metric tons in 2004-05(P)
showing an increase of 3.79 percent. This increase is mainly in
production of crops of rice and wheat. The production of rice has
increased by 8.09 percent in 2004-05 (P) over the previous year and
the production of wheat has increased by 1.42 percent in 2004-05 (P)
over the previous year. The target of food grains production has
been fixed at 242.38 lakh metric tons but likely achievement will be
253.36 (P) lakh metric tons during 2005-06. The production of cotton
(American) has increased from 13.06 lakh bales in 2003-04(P) to
19.13 lakh bales in 2004-05(P) showing an increase of 46.48 percent.
Large
and medium industrial units increased from 551 in 2003-04 to 562(P)
in 2004-05 with a fixed investment of Rs. 21508 crores providing
employment to 2.37(P) lakh persons with the production value of
Rs.32610 (P) crores. The number of small scale units increased
from 2.03 lakh in 2003-04 to 2.04(P) lakh in 2004-05 with the fixed
investment of Rs.4835 (P) crores and providing employment to 9.34(P)
lakh persons with the turnover of Rs.25095 (P) crores. It is
expected that the number of small scale units will increase to
2.05(P) lakh with a fixed investment of Rs.4855(P)crores
providing employment to 9.38(P)lakh persons with the production
value of Rs.25200(P)crores during 2005-06.
Energy
is one of the vital infrastructures for economic
development of the State. With the object of meeting
the demand for electricity in the State, the
Government has been making higher allocation for
this sector during annual plans. During 2005-06 a
sum of Rs.964.65 crores (27.17 percent) has been
approved for energy, out of total plan outlay of Rs. 3550.00 crores.
The installed plant capacity generation was 4450
MW in the year 2005-06. The total energy availability is
expected to be 33487 million KWH during 2005-06 as compared to
32197 million KWH during 2004-05.
In
Punjab, the wholesale price index of agricultural commodities (base
1979-80 to 1981-82=100) recorded an increase of 1.7 percent during
2004-05 as compared to an increase of 5.0 percent in 2003-04. The
wholesale price index of primary articles prepared by the Government
of India (base 1993-94=100), though not comparable with the state
index, increased by 2.6 percent in 2004-05 as against an increase of
4.3 percent during the previous year.
The
magnitude of un-employment continues to be a cause of serious
concern in the state. The total number of job seekers registered
with the employment exchanges in the state was 4.67 lakh as on
30.9.2005 however the number of job seekers with the employment
exchanges as on 31.3.2004 was 4.83 lakhs. Government is implementing
various self employment schemes through various departments/
corporations. Yet a lot needs to be done to tackle this problem.
To identify the sub sectors and activities in all sectors of economy
where livelihood avenues can emerge, Govt. is conducting a study
“Livelihood Strategies Across Sectors in Punjab”. The main
objective of the study is to estimate the number of unemployed
persons and prepare the profile of unemployed persons especially of
women and the youth. The study will prepare an effective and
feasible strategy to create suitable employment and livelihood
activities in private services, manufacturing and farm and non-farm
sectors of the state with special emphasis on the issues pertaining
to women livelihood and youth employment.
The
overall budgetary position had improved on revenue account. The
revenue deficit on revenue account which was Rs.3562.96 crores
during 2003-04 (A) decreased to Rs2918.09 crores during 2004-05(RE)
and further decreased to Rs.2118.46 crores during 2005-06 (B.E). But
the volume of this deficit is still very high. The receipts from the
State’s taxes increased from Rs. 6148.54 crores in 2003-04(A) to
Rs6885.00 crores in 2004-05(RE) and is likely to increase further to
Rs.7876.01 crores in 2005-06 (BE). The government has embarked upon
a number of corrective measures to reduce the fiscal deficit.
