Saturday, April 20, 2019
News

Panel to look into Punjab's Rs 31,000 crore food account issue

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

Chandigarh | Monday, 2019 9:45:05 PM IST
Punjab Chief Minister Amarinder Singh on Monday welcomed the 15th Finance Commission's move to notify a committee to look into the Rs 31,000 crore food account issue between the Punjab government and the Centre.

The Chief Minister said "it could lead to early resolution of the issue related to the legacy debt of Rs 30,584 crore, which was threatening to cascade into a major fiscal crisis for the state."

The committee, to be led by Ramesh Chand, member of the Niti Aayog and the 15th Finance Commission, has been asked to submit its report within six weeks.

The Finance Commission chairman N.K. Singh, at a meeting with the Punjab government on January 30, accepted the gravity of the issue, an official spokesperson said.

"The committee has been mandated to look into all aspects of the legacy debt of the Punjab government arising out of accumulated CCL (cash credit limit) with reference to Food Corporation of India/Department of Food and Public Distribution.

"The committee would also recommend contours of suitable resolution that would be fair and appropriate to all stakeholders and Punjab, thus enabling the state to manage the fiscal challenge arising out of the debt stock and servicing cost due to the legacy debt," the spokesperson said.

"The legacy debt was created by the erstwhile SAD-BJP government which, in the last leg of its tenure, had persuaded the Centre to convert the CCL gap into a clean long-term loan for the state. This inflated the state's fiscal deficit to 12.34 per cent of GSDP (gross state domestic product) in 2016-17.

"The debt servicing of this amount would alone amount to Rs 3,240 crore per annum till September 2034. This will result in total outflow of Rs 57,358 crore during the repayment tenure of the loan," the spokesperson pointed out.

The Congress government in Punjab had pleaded the 15th Finance Commission to consider the matter and award a suitable debt relief package to the state.

Punjab is facing severe financial crunch with a mounting debt of over Rs 2.10 lakh crore.

--IANS js/pcj

( 356 Words)

2019-02-11-21:12:06 (IANS)

 
  LATEST COMMENTS ()
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
 
MORE BUSINESS NEWS
PM blames Congress for traders' negative...
Tata Coffee reports total income of Rs 7...
Nilekani-backed RailYatri booking app un...
SpiceJet hires 500, most from grounded J...
Wipro says recent cyber attack did not i...
Scrapped 1,500 laws in 5 years: Modi to ...
More...
 
INDIA WORLD ASIA
No unanimity yet in Congress on AAP tie-...
Wanted a PM who can attack Pakistan: Udd...
PIL filed in Allahabad HC against Congre...
Sadhvi Pragya apologises for Karkare cur...
Kushwaha to remain RLSP chief till polls...
Two elephants run over by train...
More...    
 
 Top Stories
IPL: Seven spectators nabbed from E... 
Ex-US marine arrested for 'N.Korea ... 
Kagiso Rabada, the trump card for D... 
Pak launches protest with Iran over... 
Alex Hales takes break from cricket... 
CRPF man saves poll officer's life ... 
Jaya Prada tears into Azam Khan for... 
Tata Coffee reports total income of...