Punjab's Financial Strain Under GST: Demanding Centre's Accountability

Punjab Finance Minister Harpal Singh Cheema urged the Centre to release Rs 50,000 crore compensation to mitigate GST-related losses. Since GST's implementation in 2017, Punjab incurred a Rs 1.11 lakh crore loss. Despite initial payouts, the lapse in compensation is straining Punjab's finances amid Centre-state tensions.

In a fervent appeal, Punjab Finance Minister Harpal Singh Cheema has called for immediate intervention by the Centre, demanding the release of Rs 50,000 crore to alleviate the fiscal damage Punjab has incurred due to the Goods and Services Tax (GST) introduced in 2017.

Despite previously receiving compensation, a substantial gap persists, with approximately Rs 50,000 crore still pending to offset the Rs 1.11 lakh crore shortfall. Cheema contends that the cessation of the agreed five-year compensation package has left Punjab in a dire financial strait and criticizes the Centre for undermining federal financial structures.

Cheema has taken aim at central policy maneuvers, pointing to the frequent amendments and uncertainty in the GST rates as contributing factors to the state's financial woes. He warns of dire consequences if this fiscal neglect continues, describing the Centre's actions as placing unwarranted strain on both Punjab's economy and the broader federal structure.

(With inputs from agencies.)