Capt seeks release of GST arrears, claims pendency of Rs 6,750 crore

Also sought increase in the borrowing limit under Fiscal Responsibility and Budget Management Act from 3% to 4%

Punjab chief minister Capt Amarinder Singh on Monday wrote to Prime Minister Narendra Modi seeking release of the state’s GST arrears and resolution of other pending issues to enable effective management of Covid-19 crisis.

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A similar letter was also sent to Union home minister Amit Shah.

“The release of our GST arrears is most important as we are facing serious financial constraints,” the CM wrote, drawing the Centre’s attention to the pending issues and seeking necessary follow-up action from the Prime Minister and the home minister.

The CM pointed out the state government’s GST arrears, pending since July 2017, amounted to Rs 6752.83 crore. Top officials in the state finance department told HT that in case the arrears are released, state’s fiscal position will ease out, especially when local revenues are negligible due to the ongoing curfew.

Capt also sought increase in the borrowing limit under Fiscal Responsibility and Budget Management (FRBM) Act from 3% to 4%, deferment of payment of industrial and agricultural loans by commercial banks and waiver of three months’ interest.

Referring to other issues that needed to be addressed by the finance ministry, the CM sought permission for utilisation of 14th Finance Commission grants by urban local bodies (ULBs) and panchayati raj institutions (PRIs) for emergency relief, including food and medicines for rural poor, as well as use of 25% flexi funds under Centre-sponsored schemes in the battle against Covid-19, along with its enhancement to 50%.