COVID: Punjab govt approaches Centre for funds in order to tide over the financial crisis

While citing tough economic situation in the state, Chief Minister of Punjab Capt. Amarinder Singh on Tuesday sought adequate funds from the central government primarily for support in the difficult times. 

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"The revenues of the collections of the state have dwindled in the first quarter of the fiscal year and the present situation is also grim," noted Punjab CM while reviewing the estimated losses of the fiscal year 2020-21. 

According to a presentation given by the revenue department to the cabinet, the total decline in revenue receipts was 21 percent during the quarter. The tax revenue had gone down by 51 percent and the loss of GST and VAT combined had reduced by 54 percent. 

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According to the Integrated Financial Management System(IFMS), the non-tax revenues in the state, and the shortfalls seen against the budgetary estimates in the first quarter of the fiscal year of 2020-21 had amounted to 68 percent, noted the council of ministers within the cabinet. 

"The situation has been extremely grim, and financial support from the central government is absolutely essential. The loss of funds in the state would not just be impacting the battle against the COVID-19, but also other essential expenditures that the state wishes to do, in order to improve the situation in the state,'' pointed the council of ministers. 

The state needs urgent financial help from the central government, in order to assist the state in these tough times, a feeling which was shared by all the cabinet ministers of the state. 

COVID-19 tally in Punjab 

As of Tuesday, the entire state had a total of 43,284 cases, of which 13,798 cases were active and 1129 had died.  

Amid the COVID-19 crisis that the state is facing, the state government had passed several important legislation, primarily dealing with the regulation of private clinical establishments and a temporary release of people serving their prison sentences. 

One of the important legislation, in order to decongest the prisons across the state, the Punjab Good Conduct Prisoners(Amendment)Act,2020 was passed. The act aims to extend the parole of the prisoners, in the situation of disasters,  epidemics, and extreme emergencies. 

The rationale behind the same was to keep the jails free from the virus, since a lot of prisoners, who may be out on parole or interim bail and reside in other parts of the state, would expose others to the risk of contracting the same.