Punjab Chief Minister Amarinder Singh on Tuesday demanded interim compensation from the Centre to the tune of ₹3,000 crore for April on account of the COVID-19 pandemic .
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Pointing to the alarming resource gap between the State’s anticipated receipts and committed expenditure, Capt. Singh has also demanded immediate release of ₹4,400 crore of pending GST arrears.
The Chief Minister’s demand comes a day after Rajya Sabha MP Partap Singh Bajwa asked the Union government to release the State’s arrears,
Letter to Shah
In a letter to Union Home Minister Amit Shah, the Chief Minister asked for expediting the release of the State’s GST arrears of ₹4,400 crore for the last four months to help it overcome its resource constraint.
Citing the lockdown that had substantial fiscal consequences for all States, Capt. Singh said the Centre should compensate Punjab for its loss of revenue due to COVID-19. While the ₹3,000 crore for April was an estimate, he said “detailed assessment of loss and requirement of funds for relief and rehabilitation will be submitted in due course.”
He said the State government had made a provision of revenue receipts of ₹3,360 crore for April 2020 in the budget 2020-21. However, these receipts were expected to decline sharply as most economic activities remain closed due to lockdown.
Sale of liquor
Pointing to the critical fiscal situation of the State, the Chief Minister sought the Centre’s permission to allow sale of liquor in a phased manner to mop up VAT and excise revenue.