Punjab CM Writes To Amit Shah, Seeks Interim Compensation Of Rs 3,000 Crore
Mumbai: Punjab Chief Minister Captain Amarinder Singh wrote a letter to Union Home Minister Amit Shah on Tuesday demanding an interim compensation of Rs 3,000 crore for April due to the COVID-19 pandemic.
In a letter to Shah, Singh called for accelerating the release of Rs 4400 crore of GST dues for the last four months to help the state overcome its resource shortage.
“Government of India should compensate Punjab for loss of revenue due to COVID-19. While there was an estimate of Rs 3,000 crore for April, a detailed assessment of the loss and the need for funds for relief and rehabilitation is presented in due time,” an official statement said.
However, he stressed, the Indian government should provide interim assistance so that the fight against COVID-19 is not allowed to weaken in any way.
“The state treasury is under heavy stress due to necessary health and relief measures in Punjab, which is steadily increasing with any revenue receipt to the state during these days due to the near-complete closure of trade, business and industry,” statement said.
“The state government made a provision of revenue receipts of Rs 3360 crore for the month of April 2020 in the state budget 2020-21. These included: GST – Rs 1322 crore; VAT on petroleum products – Rs 465 crore; state excise duty Revenue; – Rs. 521 crore, motor vehicle tax – Rs. 198 crore; electricity duty – Rs. 243 crore, stamp duty – Rs. 219 crore, and non-tax revenue – Rs. 392 crore, “added to it.
However, Singh said that these receipts are expected to fall sharply as most of the economic activity in the state is closed due to the lockdown.
He said that GST compensation of about Rs 4,400 crore for the last four months was from December 2019 to March 2020 – pending disbursement by the central government.
He said that the state is cautiously committed to debt services, pensions, salaries, relief measures for COVID-19, health care and infrastructure, etc., with a budget of Rs 7,301 crore for the month of April 2020, of which there is a huge resource gap between anticipated receipts and carefully committed.
Capt Amarinder Singh also sought the Center’s permission to allow the sale of liquor, in a phased manner, to eliminate VAT and excise revenue.
The Ministry of Home Affairs, Government of India, should allow the state to make a conscious decision to allow the sale of liquor in certain areas in a phased manner with strict social distance and other measures to prevent COVID-19.
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