CHANDIGARH: The Punjab Government feels bewildered over its parleys with the Planning Commission as it has got nothing except assurance for the central funding of the States plans which cannot survive on its own resources.

The Deputy Chairman of the Planning Commission Pranab Mukherjji had reportedly told the Chief Minister Beant Singh when they met in Delhi that a package would be worked out soon to remedy Punjab’s economic ailments over a period of the next three years. Despite his assurance the fact remains that the State Governments term has returned empty-handed.

The Commission it appears wants to club of the State so that the idea could be made about the assistance required for the remaining period of the 1990-95 five-year plan. So far as the economic package is concerned it remains a mirage.

The Government now busy to assess its requirements for the next three years is learned to have arrived at the astronomical figure of about Rs 4000 crore of special term loan for running the planning mill. Even its current years plan of Rs 1150 crore needs additional assistance of Rs 416 crore for its complete implementation.

The next years plan would start with a negative balance of Rs 83 crore if the Center does not extend the moratorium on repayment of installments of special term loans already utilized.

The installment of Rs 611 crore payable this year was deferred for a year and would be Rs 704 crore with interest in 1993-94 Even if the next years plan is kept as a size of Rs 1500 crore it would have to be funded entirely by the Center according to official sources. Punjab debt at the end of the year would be Rs 7700 crore including Rs 4800 crore special term loan from the Center.

The Punjab Government homes to prepare in a week that seems to be a white paper on its finances for presentation to the Center. The paper would indicate the assistance required and protections of the States won resources mobilization Officials admit that mere additional taxation would not meet the target and evasion of the existing levies would have to be plugged.

There is already a hue and cry against the increase in power tariff which may have to be scaled down if the Government submits to the pressure.

Article extracted from this publication >> November 27, 1992