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Two Punjab ministers to meet Piyush Goyal today to push for release of rural devp fund
The RDF from the sale of kharif crop (paddy) for the central pool runs into Rs. 1,250 crore, a major revenue source for the state on which development of rural Punjab depends.
As the Centre has not permitted Punjab to deduct rural development fund (RDF) from the cash credit limit (CCL) released for paddy procurement that ended on November 30, two cabinet ministers from the state – Manpreet Singh Badal and Bharat Bhushan Ashu would meet Union food minister Piyush Goyal to push for the release of funds, in New Delhi on Thursday.
The RDF from the sale of kharif crop (paddy) for the central pool runs into Rs. 1,250 crore, a major revenue source for the state on which development of rural Punjab depends. It also funds the state’s key expenditure such as debt waiver launched by the chief minister (CM) Capt Amarinder Singh and sangat darshan programs of the former CM Parkash Singh Badal.
As per the state’s regulations, 3% RDF is charged on the sale of food grains, and the Centre has, for the first time, missed mentioning it on the provisional cost sheet sent to the state before procurement of paddy.
“We took up the RDF release issue with the Centre numerous times, but there has been no response; so we are meeting the Union food minister tomorrow,” said Ashu, who holds the portfolio of food and civil supplies minister. He is accompanying finance minister Manpreet Badal. Ashu added that the state government was hopeful of a positive response from the central minister.
On October 30, the Centre had asked the state government to give justification for RDF, to which it was replied that it is very important and crucial for the rural development.
As per a provisional cost sheet sent to the Punjab government last week, for giving taxes and incidentals on paddy procurement for the current season, clearance was given for dami (commission) of Rs 46 per quintal to commission agents (arhtiyas) and 3% mandi fee, but RDF was held back, seeking justification from the state government.
“RDF is very important for us, especially when the revenues from all sources have shrunk due to Covid19 pandemic. We are hopeful that the Centre will accept our plea,” added Ashu, informing that it took more than a month to get an appointment from minister Goyal who took over the ministry after the death of previous incumbent Ram Bilas Paswan.
What is RDF?
The tax was imposed on purchase of wheat and paddy by an act of state assembly ‘RDF Act 1987’. It was increased from 2% to 3% in 2017 when Capt Amarinder Singh took over. The fund is under the purview of the rural development board which is headed by CM as ex-officio chairman. Mandi board manages usage of RDF, which is used on building and maintaining infrastructure in rural Punjab.
