Punjab Pushes for Rehabilitation and Industrial Aid

Punjab's Finance Minister, Harpal Singh Cheema, met with the 16th Finance Commission in Delhi to advocate for a rehabilitation package after devastating floods and border tensions. He emphasized the need for fiscal reforms and support to mitigate economic setbacks and enhance security infrastructure in the state.

A high-profile delegation from the Punjab Government, including Finance Minister Harpal Singh Cheema, Chief Secretary KAP Sinha, and Additional Chief Secretary Alok Shekhar, convened with Dr. Arvind Panagariya, Chairman of the 16th Finance Commission, in Delhi on Tuesday. The meeting aimed to underscore Punjab's pressing needs for a special rehabilitation package following severe floods causing damages worth Rs 20,000 Crores, particularly affecting border areas.

Minister Cheema highlighted the financial strain on Punjab as a frontline border state, exacerbated by recent natural disasters and the GST regime transition. He argued for reforming the State Disaster Response Fund (SDRF) norms, criticizing them as excessively restrictive and limiting timely relief efforts. Cheema urged for SDRF flexibility, akin to the National Disaster Response Fund, pointing out Punjab's accumulated Rs 7,623 Crores interest from its Rs 12,268 Crores fund balance.

Moreover, Cheema called for substantial financial backing for states with hostile border conditions, spotlighting economic disruptions due to Pakistan tensions post-Operation Sindhoor. He advocated for a Rs 2,982 Crores Border Area Package to bolster police and law enforcement. Additionally, Cheema pushed for a special Industrial Package for border districts lagging in per capita income due to regional tensions, requesting Rs 6,000 Crores to stimulate industrial growth and employment. The minister also highlighted financial challenges faced under the GST regime, pushing for a 50% share of the Divisible Pool and a Rs 75,000 Crores developmental grant. Finance Commission Chairman Dr. Panagariya assured these concerns would be deliberated, highlighting the urgency of Punjab's security and economic needs.

(With inputs from agencies.)