The Punjab government would be able to mop up only Rs 2,600-2,700 crore against a projected revenue mobilisation of Rs 4,000 crore, State Finance Minister Manpreet Singh Badal said here today. "When we minutely scrutinised the report submitted by the committee(two member committee), we found that we will be able to generate only Rs 2,600-2,700 crore against projected revenue of Rs 4,000 crore," Badal said at a press conference here after tabling the budget in state assembly.

He further informed that with the implementation of measures suggested by the committee, the state would get Rs 1,930 crore which will be transferred to consolidated fund and Rs 600-700 crore to local bodies.

In the wake of poor state of fiscal health, the Punjab government had constituted a two-member committee on resource mobilisation, which in its report had recommended sweeping reforms in taxation structure to mop up an additional revenue of Rs 4,000 crore.

The committee comprising state Deputy Chief Minister Sukhbir Singh Badal and Local Bodies Minister Manoranjan Kalia had recommended a host of initiatives, including streamlining of subsidies, raising value added tax (VAT) rate from 4 to 5 per cent, imposition of 10 per cent surcharge on VAT among others.