Plan to pull Punjab out of red awaits implementation

The cash-strapped state government has suspended payment of government bills and pensions and other sundry expenses by the teasuries. The government is finding it hard to pay the employee’s salary and has resorted to strict monitoring of the tax reciepts, they said.

The Reserve Bank of India (RBI), at one stage ordered banks not tohonour state government’s cheques as it had resorted to massive overdraft but the Centre promptly came to the rescue of the state by advancing crore as ways and means assistance last month, they said.

The overall revenue from two main sources-sales tax and exciseduty — has shown only 3.9 per cent growth during past nine months, collecting Rs 2,046 crore against the last year’s receipts of Rs 1,969 crore during the corresponding period. Punjab’s financial of late has been of concern to the Planners in Delhi. In fact , the Planning Commission has sent notices to the state government to take urgent steps to revive its economy and generate growth given its agriculture-based economy. But the notice has still to take effect.