The Union finance ministry has sanctioned Rs 1,237 crore grants-in-aid to Punjab that was pending arrears for previous two financial years accrued to the state after the revenue for the base year was revised, a government official said Saturday.
“The sum is arrears for the loss of revenue in financial years 2017-18 and 2018-19 because of revision 2015-16 revenue, which is the base year,” the official said requesting anonymity.
Punjab has been hard pressed for funds in the wake of the coronavirus pandemic.
In a letter to Union finance minister Nirmala Sitharaman on Thursday, Punjab finance minister Manpreet Singh Badal said, “The financial support has come at a critical time when we are confronted with meeting the greatest challenge that humanity has ever faced.”
“It has emboldened our faith in Almighty that no matter what the odds are there is always someone out there wanting to lend a helping hand just when you begin to feel than none exists,” he said in the letter reviewed by HT.
He thanked Sitharaman for keeping her promise to release Goods and Services Tax (GST) arrears and appreciated her for a “fair play”. “In retrospect I feel that the delay has turned out to be a blessing in disguise allowing us to obtain this reserve when it would be most needed,” he wrote.
Singh was responding to a Union finance ministry order dated April 8, 2020 to the Pay and Accounts Officer at the revenue department about a payment of Rs 1.237 crore as grants-in-aid to the government of Punjab.
“Taking into account the payment of this amount and earlier release of ad-hoc GST compensation amounts of Rs 4,618 Cr and Rs 8,239 crore, respectively for financial years 2017-18 and 2018-19, total release of GST compensation to Punjab for the period of July 2017 to March 2019 becomes Rs 14,094 crore,” the official mentioned above said.
This release of non-plan grant is arrears of GST compensation for FY 2017-18 and FY 2018-19 worked out as per entitlement of the state government on the basis of revision of base year 2015-16 revenue and is subject to the certified figures for FY 2017-18 and FY 2018-19 to be provided by the government of Punjab, the official said.
