Punjab finance department, which is facing an acute financial crunch, has asked at least a dozen state government departments to deposit funds available with them into the state treasury.
The orders were issued last week after a meeting with the administrative heads of these departments. The order asks the departments to mop up the funds, which are kept ideal and unused, with immediate effect and deposit it with the treasury to increase the state’s kitty.
“In reference to the discussions held during the meeting on June 5, it is requested the funds be deposited in state treasury under the government public accounts, major head of the Punjab state development fund,” reads the administrative orders issued by principal secretary finance Krishan Kumar.
The departments which have been asked to deposit funds, include revenue and rehabilitation, good governance and information technology, food and civil supplies, animal husbandry and dairy development, water resources, water supply and sanitation, taxation, technical education and industrial training, agriculture (Punjab state warehousing corporation), public works department (building and roads), Punjab state agricultural marketing board (Mandi board) and Punjab infrastructure development board (PIDB).
According to an official, who didn’t wish to be named, the government wants to manage borrowings.
“The move has been initiated, to manage the borrowings. The state government might use the funds, lying with the departments and subsidiaries of their agencies. The government has called back all funds from all the departments as the state seems to be facing a severe fund crunch,” the official added.
{{/usCountry}}“The move has been initiated, to manage the borrowings. The state government might use the funds, lying with the departments and subsidiaries of their agencies. The government has called back all funds from all the departments as the state seems to be facing a severe fund crunch,” the official added.
{{/usCountry}}Another official, privy to the developments, said that the government had sought approval for ₹47,076 crore, under the open market borrowing (OMB) limit but the Centre has imposed a cut of ₹16,676 crore.
OMB means negotiated loans from NABARD, SIDBI, and transfers from the state provident fund and public accounts.
“The idea is to make best use of the funds available with the government under different kitties. The finance department is making efforts so that the government can come out of the cycle of overdraft which it has practising since 2012-13,” informed another official on anonymity.