Clear Rs 8,253 crore pending GST dues, Punjab asks Centre

Tribune News Service
CHANDIGARH, FEBRUARY 20

Chief Minister Captain Amarinder Singh today requested the central government to release the pending amount of the GST compensation amounting to Rs 8,253 crore to the state for April 2020 to January 2021.

The CM further reiterated the state’s demand for releasing the compensation on a monthly basis in the coming fiscal year and sought extension in the period of the GST compensation beyond the current five years for states like Punjab, which had lost a significant portion of their revenue, especially on account of subsuming of Purchase Tax on foodgrains and were staring at a huge revenue shortfall after the end of the compensation period.

‘Build rail infra’

  • The state said the Ministry of Railways should kickstart and fast track the project to construct a new railway line from Beas to Qadian
  • The ministry should sanction a special project for a new railway line from Mohali to Rajpura
  • It should expedite the construction of new rail link between Khemkaran-Patti and Ferozepur-Makhu

In his speech submitted at the Niti Aayog meeting, the CM said the practice of direct transfer of funds under certain central schemes to the implementing agencies bypassing the Consolidated Fund of the state had not only violated the provisions of the Constitution, but was also against the spirit of cooperative federalism. The Centre was requested to route all funds only through the Consolidated Fund of the state.

The 15th Finance Commission, in the final report for the FY 2021-22 to 2025-26, had recommended certain sector-specific and state-specific grants for Punjab, amounting to Rs 3,442 crore and Rs 1,545 crore. However, these had still not been cleared by the Government of India, he regretted, urging the Centre to provide these to the state for infrastructure and much-needed impetus to its economy.

To further enhance the ease of doing business, which has led to Rs 70,000 crore fresh investment in Punjab in the last 4 years, the Chief Minister suggested that the periodic assessment for reducing the compliance burden with ministries and agencies of the Government of India might also be done. He further sought steps to improve logistics/transportation for the land-locked state, which was unable to reach its potential due to distance from the ports in terms of freight movement.

He urged the central government to draw a scheme to facilitate the industrialisation in the states that were more than 1,000 km away from the ports by subsidising the industrial units for transportation of their finished product and procurement of raw material to and from the nearest port.

Clear Rs 8,253 crore pending GST dues, Punjab asks Centre
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