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This is an archive article published on June 17, 2023

Centre owes Punjab Rs 5,800 crore, Punjab government to take up with centre

The Punjab government is preparing a case to be taken up with the Centre. Sources said that the government is feeling that “discrimination” was being meted out with the border state.

Bhagwant Mann, Punjab newsThe Finance Department has put up a list of pending dues to the Chief Minister Bhagwant Mann (File/PTI)
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Centre owes Punjab Rs 5,800 crore, Punjab government to take up with centre
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Punjab is already under severe financial crisis, still Centre owes Rs 5,800 crore to the state, with the following unpaid funds: Rs 3,600 crore towards Rural Development Fund (RDF) for last four procurement seasons, Rs 600 crore for National Health Mission (NHM), and Rs 1,600 crore towards Special Capital Assistance (SCA).

The Finance Department has put up a list of pending dues to the Chief Minister Bhagwant Mann. The government is preparing a case to be taken up with the Centre. Sources said that the government is feeling that “discrimination” was being meted out with the border state.

A source said that the withholding of RDF was unconstitutional as the fund was levied under an Act and not paying the money was against the law. “It is akin to someone not paying the income tax by saying that he did not believe in the Income Tax Act. When Punjab has levied the tax on procurement under a law, how can the Centre withhold it? They will have to pay,” said a functionary of the government.

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He added that the Centre had also not paid Rs 600 towards NHM for healthcare on the pretext that the state had set up Aam Aadmi Clinics in the state. “The Centre pays only Rs 600 crore out of Rs 1,100 crore scheme. The Centre pays 60 per cent while 40 per cent of the grant is matched by the state. When the state is paying 40 per cent, why cannot it have its own facade outside the clinics?” asked the functionary.

The official also said that the Health Minister Dr Balbir Singh had taken up the issue with the Centre, saying that the government was ready to tweak the facade of Aam Aadmi Clinics, but the Centre did not agree.

The Centre has also withheld Rs 1,600 crore towards Special Capital Assistance, which is given to the state for spending on capital expenditure to generate funds. But this time, the Centre has not given the funds to the state, the functionary said.

The state is already planning to move the Supreme Court to get its RDF, “We will make a case that the RDF is levied under an Act and the purchaser cannot refuse to pay this tax. But before that the government wants to explore all other options,” said the functionary, adding that the best at the time was to meet the PM and make him abreast of what was happening.

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