Punjab Chief Minister Parkash Singh Badal and Deputy Chief Minister Sukhbir Singh Badal on Friday called on Union Finance Minister Arun Jaitley at his office in New Delhi to seek his personal intervention for immediate release of pending grants to the tune of `283 crore recommended by the 13th Finance Commission.
Taking the part in the deliberations during the meeting with the Union Finance Minister, both the leaders informed Jaitley that these grants duly recommended by 13th Finance Commission, were already overdue for release and would subsequently lapse after March 31, 2015. They also solicited Jaitley’s attention to the fact that Punjab along with West Bengal and Kerala were treated as fiscally stressed States by 13th Finance Commission. They apprised the Finance Minister that the 13th Finance Commission had recommended to the Government to help these States come out of the fiscal stress.
The State continued to incur Revenue Deficit ranging from 3.5% to 1.2% of the GSDP during 2004-05 to 2014-15 except in 2006-07 when it showed a Revenue Surplus due to grant received from the GoI against the waiver of the Special Term loan incurred for payment for central forces deployed in the State during militancy period. They pointed out that the debt to GSDP ratio of the State continued to be high at 32%. The state spends 23% of its Revenue Receipts on interest payments.
The report submitted by the 14th Finance Commission failed to take due cognizance of these facts and has ignored the State’s requirement of Revenue Deficit grant, even as it has recommended Revenue Deficit grant for the other two States treated as fiscally stressed by 13th Finance Commission besides adding some other States to the list of recipients of the Revenue Deficit grant.
Both the CM and Deputy CM requested Jaitley to at least provide the State some relief by reimbursing `2,684 crore repaid by the State against principal and interest of the Special Term loan provided during period of militancy. The rest of this Special Term loan has already been waived, they remarked.
On the occasion, the Chief Minister also handed over a letter to Jaitley stipulating Department wise Grants recommended by 13th Finance Commission pending.
Responding to the issues raised by Chief Minister and Deputy CM, Jaitley assured them that he would direct the Ministry of Finance to ensure the timely release of these grants of `283 crore without any further delay.
