In his more than two-hour long budget speech, Punjab Finance Minister Harpal Singh Cheema on Friday accused the Central Government of ignoring the state’s “long pending” “legitimate” demands; while also lashing out at the previous governments in the state for leaving Punjab in a financial mess.
 
Taking on the BJP-led Central Government, Cheema pointed out that it was not releasing more than Rs 9000 crores of the State’s funds. “In spite of repeated requests being made to the Union Government, I feel sorry to state that it has been turning a deaf ear to the long pending legitimate demands amounting to Rs 9,035 crore of the state',” said Cheema.
 
He pointed out that the sub-committee constituted by the 15th Finance Commission, under the chairmanship of Dr Ramesh Chand, in its report had duly verified the rightful claims of Rs 6,155 crore related to Clean Term Loan amounting to Rs 31,000 crore, which has not been paid to the state.
 
“'Further, Rs 2,880 crore relating to Rural Development Fund being charged at three per cent of MSP on the procured grains that was earlier being reimbursed by the FCI (Food Corporation of India) have also not been released at the Centre,” he added.
 
He claimed that in spite of difficulties being created by the Centre and “legacy financial morass left by our predecessors”, the AAP-led State Government is leaving no stone unturned to provide well deserved financial relief to common Punjabis through our programmes and policies.
 
During his speech, the state finance minister said the AAP-led government, which is completing one year in office this month, is working to provide clean, effective, and efficient governance and he targeted the previous regimes of leaving the state in a financial mess.
 
He pointed that the State Government, the previous year, had released a white paper on State finances “bringing out the width and depth of financial mess left by previous Governments”.
 
“Our Government inherited that mess including pending liabilities worth thousands of crores,” he said while quoting renowned poet-writer Rahat Indori, “Humse pehle bhi musafir kayi guzare honge, Kam se kam raah ke patthar toh hta jaate”.
 
Maintaining that AAP Government was trying hard to remove the obstacles left by the previous regimes, he said: “Our Government bailed out Institutes such as Punjab Agriculture Development Bank, PUNSUP, Punjab Agro. Further, our Government infused capital in District Cooperative Banks, provided grant to MILKFED and financed mills and SUGARFED to pay our hard working cane growers on time, and Rs 2,000 crore has been given for this purpose.”
 
“The impact of sixth Pay Commission, which was delayed by the last Government, was taken by our Government in the current financial year. Our Government showed its commitment to our officers, employees and pensioners by releasing six percent DA from October 2022, implementing UGC pay scales, and the second National Judicial Pay Commission; whereas these were supposed to be paid by the previous Government,” said Cheema, while targeting the erstwhile Congress government. He pointed that the financial impact of all these decisions on the State exchequer is Rs 1,150 crore.
 
He added that to clear pending liabilities and speed up works at the ground level, AAP Government released previous years’ un-disbursed central share of Rs 1,750 crore approximately belonging to various centrally sponsored schemes, which was withheld by previous Governments.
 
Meanwhile, the Finance Minister added that the Government is also taking up the issue with the Centre for allowing Punjab for pre-payment of its high cost long-term debts, that is National Small Saving Fund Loans, carrying a cost of 9.50 to 10.50 per cent with prevalent low-cost market borrowings of approximately 7.60 per cent. “This will immensely help the state in tiding over this difficult fiscal state and help in reducing the interest liabilities of the state,” he said.