Citing tight financial situation faced by the State, Punjab Chief Minister Amarinder Singh on Wednesday sought a special debt relief package from the 15th Finance Commission. The State needs funds to support the government’s efforts to revive fiscal health, along with a one-time package to enable payment of the entire debt of the distressed farmers of Punjab.
At a meeting of the 15th Finance Commission here, Capt. Amarinder expressed concern over the permanent loss of revenue suffered by the State after the GST implementation. The compensation from the Centre will also end from July 1, 2022, resulting in a drastic fall in revenue in the range of ₹10,000 to ₹12,000 crore per annum, he pointed out.
An official statement said that in view of the loss, the Chief Minister urged the Commission to recommend a graded compensation tapering formula to the Government of India for States like Punjab beyond June 30, 2022. The statement added that Capt. Amarinder sought a special package for the State due to its special problems such as highest SC population in percentage terms, long and thickly populated border with Pakistan, riverine and sub-mountainous areas and flight of industry due to concessions to neighbouring States.
