Centre held back funds worth over 12,300 cr, claims Finance Dept

Tribune News Service

Ruchika M Khanna

Chandigarh, March 2

The Centre has held back Punjab’s Rs 12,300-crore funds during this financial year so far.

The figure has been calculated by the state Finance Department as it gives final touches to the Budget proposals for the financial year 2024-25 to be announced on March 5. The Budget session of the state Vidhan Sabha began yesterday.

Fund pruning

• Rs 1,800-crore cut in borrowing limit
• Rs 1,807-crore cut in Special Assistance Grant
• Rs 5,500-crore Rural Development Fund not released
• Rs 800-crore NHM funds not released

Information available with The Tribune shows that the borrowing limit of the state has been cut by Rs 1,800 crore, Special Assistance Grant of Rs 1,807 crore has been withheld and a cut of Rs 800 crore has been imposed as regards the National Health Mission funds.

The Centre has recently also asked the state to bear Rs 2,400-crore loss out of the Rs 4,700-crore loss incurred by the Punjab State Power Corporation Limited (PSPCL) even after signing up for the UDAY scheme. This amount is to be adjusted against the borrowing limit of the state.

Other than this, the state’s Rural Development Fund (RDF) of Rs 5,500 crore is pending for release with the Centre. The Centre has also not given the Rs 6,100-crore relief on the Rs 31,000-crore gap amount of cash credit limit (CCL). This was promised to the state in 2019 after a committee headed by Ramesh Chand made a recommendation in that regard.

Finance Minister Harpal Cheema told The Tribune that in spite of the huge cuts imposed by the Centre, the state itself continues to do well in achieving revenue growth. “In terms of excise revenue alone, in the two years of our assuming office, it will touch Rs 9,785 crore, up by Rs 3,626 crore. The GST collections are expected to go up to Rs 23,000 crore, of which 75 per cent was achieved till January. We are also on way to achieve our targets for stamp duty and sales tax collections. All our committed liabilities have been met on time,” he said.

Cheema further said if the BJP-led Centre was more benevolent towards Punjab, the AAP government would have been able to spend more on development and people-oriented schemes.

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