Saddled with a huge debt — a legacy of the SAD-BJP government — there could be some relief for the Capt Amarinder Singh government in Punjab. The 15th Finance Commission will be setting up a committee under Dr Ramesh Chand to find ways to settle the
Rs 31,000 crore debt taken by the ruling coalition then, days before the Assembly poll results in March 2017.
Each year for 20 years beginning 2017, Punjab is to pay Rs 3,240 crore as interest towards the loan taken to settle the food credit account. Of the Rs 31,000 crore that the Centre has asked Punjab to pay, the principal amount is Rs 12,000 crore and the interest amount Rs 18,000 crore.
This is eating into the state’s already depleting cash resources, leaving little room for the government to initiate development projects with most of the revenue going towards committed liabilities, including repayment of interest for a public debt that has soared to Rs 2.11 lakh crore.
Captain and Finance Minister Manpreet Badal pleaded the case before the Finance Commission. Chairman NK Singh agreed to set up a committee, comprising representatives of the Centre, Punjab and FCI, to explore all possibilities.
“Reimbursement by the Centre is below the procurement cost of foodgrain incurred by Punjab. So, the matter must be looked into,” Singh said. The panel will submit a report within six weeks.