Shiromani Akali Dal (SAD) on Wednesday lashed out at the Congress-led Punjab Government for pushing the State into a serious fiscal mess.
“Spurt in market borrowing by Punjab Government during the first quarter of the current fiscal, which increased by over 75 percent compared with the corresponding period last financial year, is alarming and disturbing and reflects on the state’s financial health under the stewardship of Finance Minister Manpreet Badal,” said the SAD MlA and the former Finance Minister Parminder Singh Dhindsa.
He said that reports indicate that the total borrowing by the state increased by Rs 1,649 crore and touched whopping Rs 3,742 crore showing an unparalleled hike.
“The borrowing have been progressively increasing each month as borrowing was just Rs 341 crore in April while it rose to Rs 1,529 crore in May and to Rs 1,870 crore in June…If the borrowing continued accelerating at this pace, the state is likely to face a serious financial disaster sooner than anticipated with the current flawed policies of the government,” he said.
Dhindsa pointed that simultaneously, the inflow of receipts too have steeply fallen this fiscal so far following a dip in revenue emanating from excise and taxation, VAT, GST and other sources of income.
“The government has taken no remedial step to check the rot and reverse the trend to increase the revenue receipts of the state despite the grim economic scenario which should have already rung alarming bells in the corridor of power,” he said.
SAD leader said that the net result of these trends is that no money is left with the State Government for development in the state as the entire flow of revenue is exhausted in meeting the committed liabilities of the providing salaries pensions etc.
He added that the government is finding difficult to disburse money for ongoing welfare schemes and for releasing three DA installment which the neighbouirng Haryana has already paid.
Dhindsa said that for want of funds, the ongoing development works have come to grinding halt while no new projects have been taken up during the current regime but for the government creating a hoopla over farm loan waiver.