Debt-ridden Punjab seeks special package

Saturday 02nd February 2019 05:46 EST

CHANDIGARH: Punjab Chief Minister Amarinder Singh has urged the 15th Finance Commission to sanction a 'Special Debt Relief Package' to support his government's efforts to revive fiscal health, along with a one-time package to enable payment of the entire debt of the distressed farmers of the agrarian state. In a meeting of the 15th Finance Commission with the state government, he noted with concern the permanent loss of revenue suffered by the state post GST implementation, whose compensation from the Centre will also end from July 1, 2022, resulting in a drastic fall in revenue in the range of Rs 10,000-12,000 Crore per annum. Singh's spokesperson said, “In view of the loss, the Chief Minister urged the Commission to recommend a graded compensation tapering formula to the government for states like Punjab beyond June 30, 2022, so that they do not simply 'fall off the cliff'.”

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