Punjab Finance Minister Manpreet Singh Badal on Wednesday said that the cash flows of the State have been seriously impacted by the unilateral decision of the Central government adopting a new pattern in transferring the devolution of the State share in taxes as per the recommendations of the Finance Commission and also the transfer of State share in Central Goods and Services Tax (CGST) and Integrated Goods and Services Tax (IGST).
He was participating in the pre-budget meeting of Finance Ministers of all States and Union Territories with Union Finance Minister Nirmala Sitharaman in New Delhi
Mr. Badal said Punjab has been hit hard by the unending delay in release of its compensation of assured revenues of GST.
“In the first two years of implementation, bimonthly release of GST compensation by the Central government to the States had been adversely affecting their ability to meet their committed and regular outflows,” said Mr. Badal, urging for monthly release of such compensation to enable the State to timely and efficiently plan their expenditures.
“The non-release of the bimonthly GST compensation to the State even after the expiry of 4 months is severely affecting the State’s fiscal management cycle,” he added.
Mr. Badal also urged the Centre to continue the procurement of wheat and paddy at minimum support price from Punjab, besides ensuring procurement of maize and alternate crops to promote crop diversification and to address the problem of depleting groundwater table. Also for crop residue management the Centre should make provision in the provisional cost sheet at ₹100 per quintal over and above the MSP, he added.
Groundwater depletion
Amid the growing concerns on the depleting groundwater levels and a dire need for the management of waste water, Mr. Badal asked the Union Finance Minister to formulate a special scheme for the establishment of water treatment plants and rejuvenation of village ponds in the forthcoming Union Budget.
