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Will Centre pay up?
Owes Rs 3,315 cr to Punjab for foodgrains
P.P.S. Gill
Tribune News Service

Chandigarh, December 10
While Punjab is struggling to put its finances in order, even the Centre looks the other way on money matters, particularly, on the dues it owes to the state. A perusal of important issues pending with New Delhi shows that if the Centre makes available the outstanding sum it owes to Punjab, the economy will breathe easy.

As an illustration, the Centre owes Punjab a sum of Rs 3,315.64 crore on procurement of foodgrains alone. Interest on the foodgrain stocks held in the state by various agencies, on behalf of the Centre, alone works out to be Rs 1,560.58 crore. Add to it another Rs 400 crore as interest that accrues on this sum.

In such matters, merely writing letters or occasional meetings alone with Centre’s “defaulter’’ departments will not help. A persistent effort is needed to follow up the pending issues, particularly, where finances are involved. If need be, Punjab must set up a special cell for the purpose, say sources.

As the financial noose tightened its grip, Chief Minister Amarinder Singh cut across the party lines and rushed to Delhi recently to apprise the MPs from the state about the pending issues, imploring them to raise their voice in Parliament. He has also instructed the bureaucrats concerned on deputation to the Centre to spare time for Punjab’s interests as well.

The pending issues have a wide sweep. These range from seeking what is rightfully due by way of “reimbursement’’ in respect of procurement of foodgrains to the development of infrastructure in the three border districts. Other issues include remodeling of irrigation network channels, writing off Rs 274 crore spent on central paramilitary forces while fighting terrorism (1980-1993), getting all dues as recommended by the Eleventh Finance Commission, funds for projects under the accelerated irrigation programme and also taming the Ghaggar.

Unless Capt Amarinder Singh keeps tab on the progress in effecting recoveries from the Centre, his interface with MPs would remain only a cosmetic exercise.

The Eleventh Finance Commission has recommended grants for upgradation of standards of administration and special problem (girl education) schemes to the tune of Rs 110.01 crore to Punjab for 2000-05. The Centre owes Punjab Rs 41.34 crore for the two schemes. The break down is as follows: out of the total allocation of Rs 69.47 crore (2000-01/2001-02), the Centre has released Rs 47.16 crore. The remaining Rs 22.31 crore has not been received till March 31, 2002. The current year allocation is Rs 23.16 crore. Out of it only Rs 4.13 crore was received. Thus Rs 41.34 crore is due.

Similarly, sources say, the Centre owes Punjab Rs 77.31 crore under the panchayati raj institutions (PRI) allocation and Rs 5.47 crore under the urban local bodies schemes. The total allocation under PRI is Rs 154.63 crore (2000-05) and for current year Rs 92.77 crore of this only Rs 15.46 crore has been received. The allocation for urban local bodies for 2000-05 is Rs 54.72 crore and for the current year Rs 32.83 crore against which Rs 5.47 crore is pending.

So much so that the Centre has not bothered to release Rs 29.83 crore under the upgradation and special programme scheme recommended by the Tenth Finance Commission!

For the fiscal reforms under way, Punjab is seeking Rs 58 crore from the Incentive Fund as per Eleventh Finance Commission’s recommendations. The money is to be made available to revenue-deficit states (15) that show improvement. Punjab is showing signs of recovery with tax revenue going up by nearly Rs 700 crore in the current year over last years figure's discloses Capt Amarinder Singh.

Punjab would be much better placed financially, if the Centre released Rs 727.35 crore under the centrally sponsored schemes.
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