The state government of Punjab made its case to the 16th Finance Commission seeking increased development assistance from the central government. Chief Minister Bhagwant Mann requested special package of Rs 1.32 lakh crore along with continuation of Post Devolution Revenue Deficit Grant.
Some key demands made by Punjab included funds for agriculture diversification, tackling narco-terrorism, industrial revitalization and crop stubble management. Funds were also sought for urban and rural local development projects. Representatives from various political parties came together highlighting the priority issues facing the state and need for special attention.
The state government presented its position that the economic growth in Punjab has lagged compared to other states. Key challenges include declining growth in agriculture and rapidly falling groundwater levels increasing farming costs. Special support was sought to implement a comprehensive crop diversification program.
While the Finance Commission Chairman did not commit to any particular amounts, he stated that revenue deficit grants are generally provided. A final view will be taken after reviewing needs of all 28 states over the next six months. Punjab also proposed changes to the criteria used for devolving central taxes to states. This included higher weightage for factors like aging population and income disparity.
All political representatives united in highlighting Punjab’s strategic location and contribution to national food security and integrity. The state now awaits the decision of the 16th Finance Commission on providing a special relief package and addressing the long pending issues hampering Punjab’s development.
