Punjab's financial condition is in very bad shape and the state's fiscal deficit will increase further by Rs.18,000 crore if the GST compensation grant given by the Centre is discontinued in June 2022, Punjab Pradesh Congress Committee president Navjot Singh Sidhu said on Thursday.
"The Central Government is soon to discontinue the GST compensation grant in June 2022 which is set to cause a dramatic increase in the fiscal deficit of the state amounting to Rs.18,000 crore annually," Sidhu said in a statement.
"With additional losses of Rs.9000 crore on VAT and Rs.5000 crore on power subsidy, the state is made to fall at the mercy of the centre," he added.
Sidhu demanded that the state must continue to get the GST compensation grant even after June 2022 for another 5 years, "which is a matter of right for the People due to faulty implementation of GST by the Central Government".
He pointed out that the income generated from tax collection and grant of central government schemes to Punjab amount to Rs.75,000 crore. However, salaries and pensions, interest expenditure on previous loans and repayment of principal loan amount itself come to Rs.100,000 crore which is a fixed expense of the state.
"This has caused the state to be in continuous debt," Sidhu said.
( With inputs from ANI )
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