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Capt seeks ₹3,000-cr compensation from Centre for April
In a letter to Union home minister Amit Shah, the CM, while pointing to the alarming resource gap between the state’s anticipated receipt and committed expenditure, also asked for expediting the release of the state’s goods and services tax (GST) arrears of ₹4,400 crore for the last four months, to help the state overcome its resource constraint.
Punjab chief minister Capt Amarinder Singh on Tuesday demanded interim compensation of ₹3,000 crore from the Centre for April on account of the Covid-19 national disaster.
In a letter to Union home minister Amit Shah, the CM, while pointing to the alarming resource gap between the state’s anticipated receipt and committed expenditure, also asked for expediting the release of the state’s goods and services tax (GST) arrears of ₹4,400 crore for the last four months, to help the state overcome its resource constraint.
Citing the lockdown that had substantial fiscal consequences for all states, Amarinder said the Government of India should compensate Punjab for its loss of revenue due to Covid-19. “While ₹3,000 crore for April is an estimate, detailed assessment of loss and requirement of funds for relief and rehabilitation will be submitted in due course,” he said, stressing that interim assistance should be so that the fight against Covid-19 was not allowed to weaken in any way.
The state government had made a provision of revenue receipts of ₹3,360 crore for April 2020 in the state budget 2020-21, including ₹1,322 crore from GST, ₹465 from VAT on petroleum products, ₹521 crore from state excise, ₹198 crore form motor vehicle tax, ₹243 crore from electricity duty and ₹219 crore from stamp duty. “These receipts are expected to decline sharply as most economic activities in the state remain closed on account of the lockdown. On the other hand, committed expenditure such as debt servicing, pensions, salaries and relief measures for Covid-19 is budgeted at ₹7,301 crore for the month of April,” he said, resulting in the huge resource gap.
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ASKS CENTRE TO ALLOW SALE OF LIQUOR
Amarinder, in his letter to Amit Shah, also sought the Centre’s permission to allow sale of liquor, in a phased manner, to mop up value-added tax (VAT) and excise revenue. “The home ministry should allow the state to take a conscious decision to allow the sale of liquor in certain areas in a phased manner with strict social distancing and other measures to prevent Covid-19,” he wrote.
