Punjab Government on Monday has rejected reports of “mortgaging” the State’s properties for availing loan to meet its routine day-to-day administrative expenses.
“The State Government is not mortgaging any property of the State to avail loans for meeting its routine administrative expenses,” Chief Minister Parkash Singh Badal said.
He said that the State Government was committed towards ensuring overall welfare of the State, “but no step would be taken against the interest of Punjab”.
At the same time, Badal added, “The phenomenon of developmental loans is being adopted by almost every country and there is hardly any harm in pursuing the motto of people's well being.”
The “cash-strapped” Punjab Government is already under fire after Punjab Urban Development Authority (PUDA) mortgaged its properties, including its Mohali headquarters — PUDA Bhawan, to raise a loan amounting to Rs1,000 crore from two Banks — Canara Bank and Bank of India.
Besides, it has also been learnt that the State Government has approved the Public Works Department (PWD) proposal to “mortgage” its properties for raising a bank loan up to Rs1,000 crore for construction of new toll roads. The State Government, and the Chief Minister has all along been maintaining that there was “no” proposal to mortgage Government properties for raising loans.
Notably, the salaries and pensions of Government employees for July have not been disbursed till date.
The Government has also defaulted on payment of bank loans amounting to Rs1,000 crore.