Declare financial emergency in Punjab: Congress to Guvhttps://indianexpress.com/article/india/india-others/declare-financial-emergency-in-punjab-congress-to-guv/

Declare financial emergency in Punjab: Congress to Guv

The Punjab Congress Tuesday appealed to Governor Shivraj Patil to initiate an inquiry into the state’s “burgeoning” debt asked him to declare a state of financial emergency in the state.

The Punjab Congress Tuesday appealed to Governor Shivraj Patil to initiate an inquiry into the state’s “burgeoning” debt asked him to declare a state of financial emergency in the state.

In a memorandum written to the Governor,CLP leader Sunil Jakhar pointed out that Punjab had been facing “deteriorating” fiscal condition under the SAD-BJP regime.

Alleging “irregularities” committed by Finance Minister in the latest budget passed in the state assembly,the memorandum states that as per mandate of the Punjab Revenue Fiscal Responsibility and Budget Management Bill,the revenue deficit as percentage of gross state domestic product (GSDP) in the year 2012-13 should be below 1.2 percent.

“But in gross violation of norms,the revenue deficit has reached 1.61 percent of the GSDP. Last year too,these limits relating to revenue as well as fiscal deficits were violated,which had resulted in the state not being able to avail grant worth nearly Rs 500 crore from the Central government,” Jakhar said in the report,adding that the finance minister had admitted this in his Budget speech.

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“In a serious indictment,the CAG has accused the Punjab government of unconstitutionally diverting Rs 3,194 crore to various state bodies. This is a clear violation of the constitutional norms. As per the law,this money collected as taxes between 2007-2012 should have gone to the consolidated fund of the state. In doing so the state has kept these funds out of the purview of Vidhan Sabha.” states the memorandum.

“CAG has also raised fingers on the violation of rules for withdrawal of Rs 3,064.21 crore in the last two days of 2011-12 year,in the name of development works and other purposes while manifold embezzlement had been reported in its expenditure,” adds the memorandum.