RELAX BORROWING LIMIT TO RAISE ₹10,000CRORE LOAN: CM TO JAITLEY
Punjab chief minister Captain Amarinder Singh has directed the expert panel headed by T Haq to expedite the submission of its report to waive off loans of the farmers in the state. Chairing a meeting of the committee, the CM said he was also simultaneously pursuing the matter with the central government.
In a letter to Union finance minister Arun Jaitley, the CM has sought a one-time exemption to the state government from the provisions of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003 that restrict its borrowings to a maximum of 3% of the GSDP, which comes to Rs 12,819 crore. Noting that the expected gap in revenues and expenditure in 2017-18 fiscal had been projected at ₹10,273 crore, the CM said he had sought permission from the Centre to allow the state government to raise additional borrowings of Rs 10,000 crore from financial institutions/market for the waiver. A delegation led by state finance minister Manpreet Singh Badal had met the Reserve Bank of India (RBI) deputy governor as well as the chairman, NABARD on July 26-27. But the RBI had said the state would have to arrange funds from its own resources/ borrowings.
State mulling new taxes, says Captain
In view of fund-crunch, the CM said the state government was making efforts to mobilise additional resources and reduce its revenue expenditure through imposition of professional tax and rationalisation of user charges, which were at advanced stage of decision/implementation.