Punjab Cabinet, in a significant display of fiscal prudence and commitment to the state’s welfare, on Monday decided to cut back on the discretionary grants for the Chief Minister, his Cabinet colleagues, and the Punjab Vidhan Sabha Speaker.
The decision was taken as the Cabinet gave its approval to the policy of Disbursement of Discretionary Grants by the Chief Minister and the Cabinet Ministers for the financial year 2023-24.
As per the policy, the Chief Minister will now have Rs 37 crore at his discretion, while each Cabinet Minister will have Rs one crore at their discretion during financial year 2023-24. Earlier, the Chief Minister’s annual grant was Rs 50 crore, while that of his Cabinet colleagues were Rs 2.5 crore each. The discretionary grant of the Punjab Vidhan Sabha Speaker, too, has been reduced from Rs 1.5 crore to Rs one crore.
The government spokesperson said that these funds are to be judiciously utilized for new and repair of existing basic infrastructure, environment improvement, and fulfilling the basic needs of the poor residing in Punjab. This realignment of funds reflects the government's dedication to optimizing resource allocation for the greater good — fostering a renewed focus on grassroots development.
Finance Minister Harpal Singh Cheema, interacting with the media after the Cabinet meeting, said that this move was inspired by the substantial unutilized funds possessed by panchayats across the State, allocated to them by the 15th Finance Commission.
Cheema said: “We want that these funds be used for development works, rather than using the discretionary funds of ministers.” The move demonstrates the Government’s intent to ensure that resources are channeled effectively towards initiatives that tangibly benefit communities and enhance overall infrastructure, said the government spokesperson.
The Cabinet decision marks the second instance this year where the discretionary grants of Ministers have been recalibrated for the sake of responsible resource management. In January, the Cabinet Ministers saw a reduction from the earlier Rs three crore to Rs 1.5 crore. This proactive step reflects the government's commitment to fiscal prudence while ensuring that public funds are directed towards projects that drive meaningful progress, said a senior government official, who did not wish to be named.
In the early days of the Congress rule, Ministers were granted Rs five crore as discretionary funds. Additionally, the Chief Minister's discretionary grant was initially set at Rs 50 crore. These adjustments, over the time, reflect the government's dedication to optimizing fund allocation in alignment with evolving needs and financial realities.
The decision to reduce discretionary grants not only underscores the government's commitment to transparency and efficient resource utilization but also empowers local bodies to play a more active role in driving grassroots development.
Among others, the Cabinet has also discussed and approved a range of decisions aimed at promoting responsible financial management and social development.
Cheema informed that the Cabinet has approved setting up of ‘Punjab Institute of Liver and Biliary Sciences’ at SAS Nagar (Mohali) to provide the world class treatment for liver ailments in the state, approving deployment of visiting faculty in schools up to the 12th grade, giving go ahead to advance parole for four inmates, among others.
Punjab Institute of Liver and Biliary Sciences at Mohali
One of the landmark decisions is the establishment of the Punjab Institute of Liver and Biliary Sciences in SAS Nagar. With an estimated cost of Rs 59 crore, this Institute is set to revolutionize the treatment of liver ailments in the state, positioning Punjab as a hub for cutting-edge medical care. The center will offer comprehensive diagnostic, health, counseling, and treatment services for liver-related diseases at affordable rates. The Cabinet's forward-looking approach also includes the creation of 484 temporary posts to ensure efficient operations and the maximum benefit for the people.
20 Technical Cadre Posts in Dept of Governance Reforms
To bolster efficiency and quality in the Department of Governance Reforms and Public Grievances, the Cabinet approved the recruitment of 20 Technical Cadre posts through direct recruitment. The move is aimed at streamlining the operations and promote excellence in serving the public.
Visiting Faculty for State Govt Schools
Recognizing the crucial role of education in holistic development, the Cabinet also greenlit the appointment of ‘Visiting Faculty’ in Government Schools across the state. This innovative initiative will bring retired teaching faculty from Government, Private Schools, Colleges, or Universities to enrich students' learning experiences, enhancing the overall quality of education.
Amendments in Punjab FRBM Act
To harmonize fiscal regulations, the Cabinet also approved amendments to the Punjab Fiscal Responsibility and Budget Management Act, 2023, aligning it with previous provisions to eliminate the need for annual amendments.