Punjab seeks spl rehab package, admits to Rs.12k-cr SDRF balance
Chandigarh, Oct. 1 -- Amid claims and counter-claims over funds in the state's disaster relief kitty, the Punjab government on Tuesday requested the 16th Finance Commission for a special long-term rehabilitation package for the flood-ravaged state and conversion of the state disaster response fund (SDRF) into a non-interest-bearing reserve. It also admitted a total SDRF fund balance of Rs.12,268 crore, including interest accumulation of Rs.7,263 crore.
A high-level state delegation, comprising finance minister Harpal Singh Cheema, chief secretary KAP Sinha and additional chief secretary, finance, Alok Shekhar, met 16th Finance Commission chairman Dr Arvind Panagariya in Delhi and presented the case for the package to the state, citing the estimated damage of Rs.20,000 crore due to recent floods, according to an official statement.
Cheema, while highlighting the stress placed on the border state's finances, emphasised the immediate need for changes in SDRF norms.
Calling the existing SDRF norms "restrictive and rigid," which constrained the state government's ability to provide timely and adequate relief, he said these guidelines need to be comprehensively reviewed to incorporate flexibility and provisions for disasters.
The finance minister further stressed that the SDRF must be converted into a non-interest-bearing reserve fund, akin to the national disaster response fund (NDRF), noting that Punjab's fund currently holds an interest accumulation of Rs.7,623 crore out of a total balance of Rs.12,268 crore. Panagariya acknowledged the Punjab finance minister's concern and assured that it would be discussed with the commission members in their upcoming meeting, according to the official release.
Prime Minister Narendra Modi, while announcing a Rs.1,600-crore relief package on September 9, had pointed out that Rs.12,000 crore was already available in the state's kitty for disaster relief. His remark triggered a row over the actual size of the state's kitty for disaster relief. The AAP government claimed that it had received only Rs.1,582 crore during its tenure, dismissing the figure mentioned by the Prime Minister as "notional" and mere "entries in account books." However, the Opposition, including the Congress and the BJP, demanded a probe into what they described as "missing" funds.
The Centre has put the SDRF balance at Rs.12,589.59 crore. This figure was conveyed to chief minister Bhagwant Mann during a meeting he had with Union home minister Amit Shah in Delhi on Tuesday....
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