Ahead of finance commission visit, state readies pitch for bailout package

The 15th Finance Commission had given revenue deficit grants of Rs 7,659 crore besides other grants for the fiscal 2020-21 to Punjab when Capt Amarinder Singh was the chief minister.

“We are still a revenue deficit state. Things have worsened after the implementation of GST. Most of our taxes have been subsumed. The GST compensation has also stopped. Punjab used to have a huge income from various taxes. The state does not have funds now,” said a finance department official, part of the team preparing the case for the bailout package.

The Centre is withholding grants and funds worth Rs 10,000 crore under various heads. It includes Rs 6,767 crore towards Rural Development Fund (RDF) and Mandi Development Fee (MDF), levied by the state on procurement of foodgrains for the central pool, Rs 650 crore of National Health Mission Fund, Rs 1,600 crore towards special capital assistance, and Rs 515.55 crore under Samagra Shiksha programme.

“We are preparing a case seeking a grant stating that Punjab is debt ridden and that the border state is already struggling financially. But there is a fear on the back of our minds that the Centre may not provide us any good grant this time as they have already withheld funds to the tune of Rs 10,000 crore. They did not give us special assistance fund stating we had not agreed to follow their design on the facade of the Aam Aadmi Clinics.

Then they did not give us funds under Samagra Shiskha scheme as we refused to implement PM-SHRI project. They can always turn around and say that we have not accepted the Centre’s schemes, so we would not be given anything under the Finance Commission,” the official said.

AAP Rajya Sabha MP Sandeep Pathak had recently raised the issue in Parliament. The finance department has already told the CM that if the Centre’s grants under health and education heads are not received, they may find it difficult to pay salaries to staff of both the departments. “If salaries are not paid, the unions will start their dharnas. That would be another problem at hand,” he said.

RDF: State pins hope on apex court

With Mann being busy in Jalandhar ahead of Assembly byelection, the officials are waiting for him to take the final decision on several issues. This includes state’s petition in Supreme Court against Centre over release of RDF and MDF. An official said that the government was waiting for the SC to decide. The case will come up for a hearing in first week of August even though there is a proposal by the Centre to sort this through a dialogue. “But they have offered us only 1 per cent each of RDF and MDF. We cannot accept that,” said an official. The state levies 3 per cent each of RDF and MDF.

Centre: rename health centres Arogya Mandir

The Centre wants the state to name Aam Aadmi Clinics as Ayushman Arogya Mandir and have the branding design prepared by the Centre. However, the state has refused to agree to it stating that the against 60 per cent grant by Centre, the state paid the remaining 40 per cent.