Punjab CM Amarinder Singh to review state's fiscal health on monthly basis

Punjab Chief Minister Amarinder Singh will undertake monthly review of the fiscal situation of the state for more efficient management of resources.

The decision was taken at a Cabinet meeting here in view of the 21 per cent decline in state's revenue receipts for the first quarter of current fiscal and with no financial support forthcoming from the Government of India, an official release said.

During the meeting, the chief minister agreed to Finance Minister Manpreet Singh Badal's suggestion to draw short-term financial plans on quarterly basis in view of the critical situation on account of the COVID-19 outbreak and prolonged lockdown, it said.

Badal warned that faced with its own revenue shortfall, the Government of India is likely to pull back finances even further from states in the coming quarter. The funds expected from the Centre in the first quarter had not come, thus leaving the state government struggling to cope, he said.

Expressing concern over the situation, Amarinder said he will hold monthly review meetings to take stock of the fiscal state of Punjab, taking into account the routine expenses, such as salaries, power subsidies, social welfare pensions, among others.

Earlier, highlighting the grim fiscal situation of the state, Principal Secretary Finance K A P Sinha said that as of June 30, the share of central taxes for Punjab had gone down by 32 per cent.

The grant-in-aid from Centre for March-June period showed an increase of 38 per cent, but that was mainly on account of the Goods and Services Tax receipt of Rs 3,070 crore received in April, which included Rs 2,366.46 crore against pending arrears for financial year 2019-20.

While the state's own tax revenue fell by 51 per cent, the first quarter decline in the state's non-tax revenue stood at 68 per cent, Sinha informed the Cabinet, adding that more prudent measures would need to be taken to survive the current crisis.

The Cabinet also reviewed the COVID-19 situation in the state, with the chief minister appealing to all to be extra cautious in view of the increasing number of cases.

The state government's expert health advisor, K K Talwar, said the next four weeks are critical and every individual would have to take full precautions for their own safety as well as of others.

(Photo Credit: PTI)