Chandigarh, July 8 : With the state's revenue receipts falling by 21 per cent in the first quarter of the 2020-21 fiscal, Punjab Chief Minister Amarinder Singh will now undertake monthly reviews of the state's financial situation for more efficient management of the limited resources.
The decision was taken at a Council of Ministers meeting, where the Chief Minister agreed to Finance Minister Manpreet Singh Badal's suggestion to draw short-term financial plans on a quarterly basis in view of the critical situation since the beginning of this fiscal, on account of the Covid outbreak and the prolonged lockdown.
Manpreet warned that faced with its own revenue shortfall, the government of India was likely to pull back finances even further from states in the coming quarters.
The funds expected from the Centre in the first quarter had not come, thus leaving the state government struggling to cope with its liabilities, he pointed out.
Expressing concern over the situation, the Chief Minister said he would hold monthly review meetings to take stock of the fiscal condition of Punjab, taking into account the routine expenses, such as salaries, power subsidies, social welfare pensions, etc.
Earlier, highlighting the grim fiscal situation, 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 the 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 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 said, adding that more prudent measures would need to be taken to survive the current crisis.
--IANS
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Source: IANS
