Punjab government presents 'white paper'
25 Jun 2022 17:50:44
Chandigarh, Jun 25: Two days ahead of presenting his first budget, finance minister Harpal Singh Cheema Saturday presented a white paper on the state of finances, saying that Punjab is in an economic morass and debt trap.
“The current date indicators of the state are probably the worst in the country, pushing it deeper into a debt trap,” Cheema said.
According to the document, the previous governments, instead of taking necessary corrective measures, continued to let Punjab slip into fiscal profligacy, as is evident from the unchecked increase in unproductive revenue expenditure, freebies, and unmerited subsidies, leading to a virtual collapse. It says social sector investments are vital for future growth and the non-realization of its potential tax and non-tax revenues. Blaming the previous government, the white paper said the Congress government professed to bring fiscal prudence in the management of state finances, while discreetly choosing not to discharge the pending liabilities. “Sadly, they also followed their predecessors and while demitting office, handed over the immediate and medium-term staggering liability of ₹24,351.29 crores that the new government has to discharge over the coming years, including claims by agencies such as Punjab State Power Corporation Limited (PSPCL),” it read. According to the white paper, the 6th Punjab Pay Commission, which was otherwise due from January 1, 2016, was implemented in July 2021 with quite a delay and in haste just six months before the assembly elections. “The nature and the way the 6th Punjab Pay Commission was implemented led to a sense of resentment, uncertainty, anguish, and disappointment amongst the employees,” it said. It said the previous government could not pay the arrears of revised pay with effect from January 1, 2016, to June 30, 2021, on account of the implementation of the 6th Punjab Pay Commission, and the pending liability on this account alone is expected to be around ₹13,759 crores.
Additionally, the amount of arrears of power subsidy and interest thereon that has been indicated by PSPCL to be payable to it for agriculture, domestic, and industry is ₹7,117.86 crore. At the end of the goods and services tax (GST) compensation regime on June 30, the Aam Aadmi Party government, in its white paper, said that it would be staring down a big hole left in its finances to the tune of ₹14,000 to ₹15,000 crores in the 2002-23 financial year itself. “This is a fall off the cliff scenario for the state,” it said.