Business
With debt of Rs 2.82L cr, incoming govt faces daunting task in Punjab

With a whopping public debt of Rs 2.82 lakh crore, the incoming government in one of the most fiscally stressed states, Punjab will be faced with the daunting task to usher in much-needed economic reforms as a major component of government earning and borrowing is meant for servicing debt rather than capital expenditure.
Twenty per cent of the annual budget is being spent only to pay the interest on the loans.
As per the latest findings of the Comptroller and Auditor General of India, the state’s financial crisis is set to worsen with the debt likely to reach Rs 3.73 lakh crore by 2024-25.
Government officials told IANS that the state’s debt has increased by Rs 1 lakh crore in the past five years under the current Congress government now led by Chief Minister Charanjit Singh Channi, largely owing to populism.
When this government took over the reins in 2017, it got the legacy of a Rs 2.08 lakh crore debt left by the decade-long rule of the Shiromani Akali Dal-BJP in the state.
An official familiar with the matter told IANS that political compulsions and populist announcements have been taking a huge toll on the state’s finances and this may surge the debt beyond the projected Rs 2.82 lakh crore.
Finance Minister Manpreet Badal in his last budget speech for this fiscal projected the total revenue receipts at Rs 95,257 crore. However, the state has never managed to achieve more than 80 per cent of its revenue target.
Also approximately 40 per cent of the state’s total estimated revenue receipts of Rs 95,257 crore for the current fiscal would go into debt servicing.
As per the budget estimates of an outlay of Rs 168,015 crore for 2021-22, the outstanding debt is likely to be Rs 273,703 crore in 2021-22, which is 45 per cent of the GSDP.
The total outstanding debt of the state as on March 31 is projected at Rs 252,880 crore, which is 42 per cent of the GSDP for 2020-21 and the outstanding debt is likely to be Rs 273,703 crore in 2021-22, which is 45 per cent of the GSDP.
Besides a major component of earnings and market borrowings go into debt servicing, the revenue goes into unproductive expenditure like disbursement of salaries, pensions and power subsidies for the farmers.
Also, say officials, the Covid-19 pandemic has caused a significant deterioration in public finances, adding to pre-existing strains. Also businesses in the state are reeling because of a sluggish economy and poor liquidity.
As per the recent memorandum by the state to the Centre for extending the Goods and Services Tax (GST) compensation, Punjab says being an agrarian economy it was deriving a significant portion of its revenue from the agriculture sector in the pre-GST era by imposition of tax on agricultural produce (mainly foodgrains).
This was realized in the form of the levy of Purchase Tax on agricultural produce at the rate of five per cent of the minimum support price (MSP) of produce collected from the purchaser of such produce.
In addition, an Infrastructure Development Fee at the rate of three per cent was also levied on purchase of foodgrains. The state collected Rs 3,094 crore in 2015-16 from the Purchase Tax and Infrastructure Development Fee alone, i.e. 16.55 per cent of its total tax revenue of Rs 18,692.89 crore during that year.
With the implementation of GST, both the Purchase Tax and Infrastructure Development Fee on foodgrains have been subsumed in the GST.
Since the GST is a destination-based tax and agricultural produce is largely exempted under it, Punjab has experienced a permanent loss of a significant portion of the state revenue.
However, the saving grace for the government is the first half of this fiscal with a hefty increase in revenue from the pre-Covid levels.
The GST revenue comprising state goods and services tax (SGST) and integrated goods and services tax from April to September of 2021 was Rs 7,851 crore, which is 67.55 per cent more than in the corresponding period of 2020, and 54 per cent more than in the pre-pandemic year of 2019-20.
But the area of concern for authorities now is ending GST compensation from the Centre on June 30, unless it is extended by the GST Council, leaving the state to fend for itself thereafter.
A report by the Group of Experts (GOE) led by noted economist Montek Singh Ahluwalia, set up by Chief Minister Amarinder Singh to revive Punjab’s economy, recommended measures like reducing average cost of government debt, banning recruitment in police and bringing pay scales of government employees on par, among others.
The panel in its report to aid medium and long-term revival strategy was categorically clear that unless measures are taken to correct the fiscal situation over the next few years, it will not be possible to achieve the objective of restoring Punjab to its pre-eminent position.
The experts suggested rationalisation of power subsidies given to farmers that is 1.9 per cent of its GDP and grew from Rs 5,670 crore in 2019-20 to Rs 7,180 in 2020-21.
Ahead of the polling for the Assembly elections on February 20, the opposition Aam Aadmi Party (AAP) had accused the previous Akali-BJP and current Congress government of plunging Punjab into debt.
“With the population of 3 crore, today every individual in Punjab has a debt of Rs 1 lakh. Every child who is born in Punjab already has a debt of 1 lakh rupees on them right after their birth,” AAP leader Raghav Chadha told the media.
SAD President Sukhbir Badal, the man known for micro poll management for his now own controlled century old party with the focus on farmers’ interests and justice for them, said Punjab and Punjabis are in a crisis.
“The Congress government did nothing for five years. It reneged on each and every promise made to the people be it complete farm loan waiver, Rs 2,500 per month unemployment allowance, jobs for each household and increase in social welfare benefits.
“It also stalled all development work but simultaneously presided over a sand and liquor mafia and looted the state exchequer. It was due to this that the state’s debt has increased by Rs 1 lakh crore in the last five years alone.”
All the parties were banking on freebies to woo the electorate.
The AAP has promised Rs 1,000 for all women, while the Congress has assured Rs 1,100 per month for needy women. The SAD-BSP alliance has promised Rs 2,000 per month to all women heads of BPL families.
Two-time Chief Minister and former Congress leader Amarinder Singh in his election campaignin stressed Punjab “needs the Centre’s support for its economic revival, which his party, the Punjab Lok Congress, in alliance with the BJP would help achieve.”
The state has no money for development, which will remain a far cry under the false promises of parties like the Congress, AAP and SAD, who were not willing to work in coordination with the Centre, he stressed.
Crime
Why Bengal govt is taking time to implement SC’s order on cancellation of school jobs: Calcutta HC

Kolkata, April 21: The Calcutta High Court, on Monday, observed why the West Bengal government and West Bengal School Service Commission (WBSSC) are taking time to implement the order by the Supreme Court (SC), cancelling 25,753 teaching and non-teaching jobs in state-run schools.
Acting on a contempt-of-court petition filed against the state government and WBSSC for not implementing the apex court order, Calcutta High Court’s division bench of Justice Debangsu Basak and Justice Shabbar Rashidi also directed the state government and the commission to explain to the court within a day.
The next hearing on the matter will be on April 23, and the state government and the commission will have to submit their explanations on the same day.
Last year, the same division bench of Justice Basak and Justice Rashidi cancelled 25,753 teaching and non-teaching jobs, which is the entire panel of WBSSC for 2016. The state government approached the SC challenging the order.
Earlier this month, the SC division bench of Chief Justice of India Sanjiv Khanna and Justice Sanjay Kumar upheld the order of the Calcutta High Court and also accepted the observation that the entire panel had to be cancelled because of the failure on the part of the state government and the commission to segregate the “genuine” candidates from the “tainted” ones.
Thereafter, the contempt of court petition was filed at the same division bench of the Calcutta High Court, accusing the state government and the commission of not even initiating the termination of jobs of those who have already been identified as “tainted” by the commission itself.
During the hearing in the matter on Monday, the division bench observed that there will be problems if even the “tainted” candidates continue receiving their salaries.
On Monday, the division bench also raised the question of why the Central Bureau of Investigation (CBI) officials are not interrogating those candidates who have already been identified as “tainted.”
The division bench also observed that the CBI should find out how those who were paid money by the “tainted” candidates against jobs.
On Wednesday, the CBI counsel will also have to give an explanation to the court in the matter.
Business
IMF, World Bank see India’s potential as engine of global trade: FM Sitharaman

San Francisco, April 21: Finance Minister Niramala Sitharaman said on Monday that India has become the fastest-growing economy, driven by the “visionary leadership” of Prime Minister Narendra Modi and the stability provided by a continuing government.
Addressing the Indian diaspora in the US, the Finance Minister said, “When we say that India is the fastest-growing economy and when the IMF and World Bank recognise that India can be the engine driving global trade, what they are recognising is the immense potential that exists in India.”
Highlighting the steps to strengthen the Indian economy, Sitharaman said, “During the Covid-19 pandemic, our fiscal deficit went up. But in 2021, we came up with a clear signal as to how we wanted to manage our fiscal deficit. We set year-on-year targets and committed to bringing the fiscal deficit below 4.5 per cent by 2026. And that’s what we have been following each year without fail.”
She said the government’s primary focus under Prime Minister Narendra Modi is achieving ‘Viksit Bharat’ by 2047. This vision encompasses improvements across sectors impacting women, the impoverished, youth, and farmers.
FM Sitharaman highlighted that India prioritises ‘Sunrise Sectors’ and stands out as a leader in Digital Public Infrastructure, driving innovation and growth..
She also said, “Prime Minister Narendra Modi makes it a part of his every overseas visit to connect with the Indian diaspora because he thinks that it is important that India connects with each one of you who, located in whichever part of the world, are doing your best to contribute to the world and stand out as an example.”
Sitharaman is on a five-day visit to the United States. Upon her arrival in San Francisco, she was received by Indian Ambassador Vinay Mohan Kwatra
During the visit, she is slated to deliver a keynote speech at Stanford University and hold discussions with CEOs in San Francisco on investment and technological advancements. The visit will also include participation in diaspora events, enhancing India’s global cultural presence.
In Washington DC, Sitharaman will attend the IMF and World Bank Spring Meetings, and the G20 Finance Ministers and Central Bank Governors meetings. She will also hold bilateral talks on the sidelines with counterparts from the US, the UK, France, Germany, Saudi Arabia, and other countries, as well as top officials from international financial institutions. After completing her US trip, Sitharaman will travel to Peru for a visit from April 26 to 30.
Business
FM Sitharaman to showcase India’s economic dynamism during US, Peru visit

New Delhi, April 19: Union Finance Minister Nirmala Sitharaman is set to embark on an official visit to the US and Peru, beginning April 20, where she is slated to participate in multilateral dialogues to showcase India’s economic dynamism, as the country prepares a bilateral trade agreement (BTA) with the US, it was announced on Saturday.
During her visit to the US, the Finance Minister will visit San Francisco and Washington, DC, from April 20-25, according to a Ministry of Finance statement.
In San Francisco, FM Sitharaman would deliver a keynote address at the Hoover Institution at Stanford University, titled ‘Laying the foundations of Viksit Bharat 2047,’ followed by a fireside chat session.
The Finance Minister will also interact with top CEOs from prominent fund management firms during a roundtable meeting with investors, besides holding bilateral meetings with CEOs from top information technology (IT) firms based in San Francisco.
She will also participate in an event featuring the Indian diaspora in San Francisco and interact with the Indian community settled there, said the ministry.
In Washington, DC, FM Sitharaman will participate in the Spring Meetings of the International Monetary Fund (IMF) and the World Bank, the 2nd G20 Finance Ministers and Central Bank Governors (FMCBG) Meetings, the Development Committee Plenary, IMFC Plenary, and Global Sovereign Debt Roundtable (GSDR) meeting.
On the sidelines of the Spring Meetings, she will hold bilateral meetings with her counterparts from several countries, including Argentina, Bahrain, Germany, France, Luxembourg, Saudi Arabia, United Kingdom, and the US; besides meeting EU Commissioner for Financial Services; President, Asian Development Bank (ADB); President, Asian Infrastructure Investment Bank (AIIB); United Nations Secretary-General’s Special Advocate for Financial Health (UNSGSA); and First Deputy Managing Director of the International Monetary Fund (IMF).
During her maiden visit to Peru from April 26-30, the Finance Minister will lead an Indian delegation of officials from the Ministry of Finance and business leaders, highlighting the strengthening bilateral economic and trade relations between the two nations.
Beginning her visit in Lima, she is expected to call on the President of Peru, Dina Boluarte, and Prime Minister Gustavo Adrianzen, besides holding bilateral meetings with the Peruvian Ministers of Finance and Economy, Defence, Energy and Mines, and also holding interaction with local public representatives.
The Finance Minister will chair the India-Peru Business Forum meeting with prominent business representatives in attendance from both India and Peru.
FM Sitharaman will also hold an interaction with the Indian investors and businesses currently operating in Peru, as well as the Indian business delegation visiting Peru. The Finance Minister will also participate in a community event in Lima, where she will interact with the Indian diaspora living in Peru, according to the ministry statement.
-
Crime3 years ago
Class 10 student jumps to death in Jaipur
-
Maharashtra7 months ago
Mumbai Local Train Update: Central Railway’s New Timetable Comes Into Effect; Check Full List Of Revised Timings & Stations
-
Maharashtra6 months ago
Mumbai To Go Toll-Free Tonight! Maharashtra Govt Announces Complete Toll Waiver For Light Motor Vehicles At All 5 Entry Points Of City
-
Maharashtra7 months ago
False photo of Imtiaz Jaleel’s rally, exposing the fooling conspiracy
-
National News6 months ago
Ministry of Railways rolls out Special Drive 4.0 with focus on digitisation, cleanliness, inclusiveness and grievance redressal
-
Crime6 months ago
Baba Siddique Murder: Mumbai Police Unable To Get Lawrence Bishnoi Custody Due To Home Ministry Order, Says Report
-
Maharashtra5 months ago
Maharashtra Elections 2024: Mumbai Metro & BEST Services Extended Till Midnight On Voting Day
-
National News7 months ago
J&K: 4 Jawans Killed, 28 Injured After Bus Carrying BSF Personnel For Poll Duty Falls Into Gorge In Budgam; Terrifying Visuals Surface