Punjab Chief Minister Capt Amarinder Singh on Friday sought personal intervention of the Union Finance Minister Arun Jaitley for immediate settlement of Rs 31,000 crore of food account on procurement of wheat and paddy, which was “wrongly taken over” by the erstwhile State Government instead of being adjusted between state and central governments.
Taking up the issue with Jaitley, the Chief Minister apprised that Rs 31,000 crore included Rs 12000 crore principal and thereon whooping interest of Rs 19,000 crore has further burdened the already distressed fiscal position of the state.
He also pointed out that the sum was on account of non-adjustment of accounts for procurement done by state agencies for the Food Corporation of Indian (FCI) from 2003-2004 onwards.
Urging Jaitley to immediately resolve the issue, Capt Amarinder said that he had been pursuing the matter since taking over as Chief Minister and it was now pending for decision with the Union Finance Ministry.
He also informed that the State was already facing an annual interest payment liability of Rs 3,240 crore and the total payoff might touch Rs 65,000 crore over a 20-year payment period, which was totally untenable for the state.