-
Connecting over 25 millions NRIs worldwide
Most trusted Name in the NRI media
NRI PEOPLE- OUR NETWORK
 
Punjab News: 2010

OCTOBER 19

NO PROPOSAL ON LOAN WAIVER FROM CENTRE: BADAL

  • CHANDIGARH OCTOBER 19:
    The Shiromani Akali Dal Chief patron and the Punjab Chief Minister Mr. Parkash Singh Badal said here today that there was no concrete proposal from the centre 'even up to this moment' on waiving the so called Rs. 35000 crore loan against Punjab. He categorically stated that there was no truth in the claim that the centre had made any concrete proposals regarding the loan waiver. “What are we arguing about really?




    The Chief Minister disclosed that he had written to the Union Finance Minister Mr. Pranab Mukherjee asking for details on the progress on the report of a committee that had been set up on the recommendations of the Finance Commission to study the debt-GSDP ratio in several states, including Punjab. The Punjab government has neither a copy of the Committee’s report nor any other communication specifying the center’s stand on the issue. So what should we respond to?” he asked, adding that a proposal, if any, would be considered by the SAD-BJP alliance and the cabinet when such a proposal comes from the centre. Till then, what is all this controversy about?”

    Mr. Badal said that the issue also involved centre-state fiscal relations. “All the states in the country today are demanding that these relations be based the federal principle.

    “The Centre must stop acting like a blood sucking money lender. It is using finances to extract every pound of flesh from the states, virtually pushing them to the brink of death or suicide.” said Mr. Badal, adding that the principle of devolution of funds must be recast in favour of states.

    Please find attached the details of the debt and government social welfare policies for your kind perusal:


    DEBT TRAP

    1. Media reports and the Congress statements are alleging the State Govt. is in a debt trap.
    2. It is also being put forth that the present government is responsible for this situation.
    3. The facts are totally different :-

    BACKGROUND OF THE DEBT.

    1. The debt on 31-3-10 was Rs 64,924 Cr.
    1. Interest being paid by the state is about 6,500 Cr per year.
    2. Debt position of other states – (in Rs.)
    · Uttar Pradesh 2,21,000 Cr
    · Maharashtra 2,05,000 Cr
    · West Bengal 1,92,000 Cr
    · Andhra Pradesh 1,26,000 Cr
    · Gujrat 1,05,000 Cr
    · Rajasthan 90,208 Cr

    REASONS FOR INCREASE DEBT IN THE STATE

    The Anti Punjab Policies of the Central Govt. are responsible for this increased debt in the State.

    1. Debt due to Militancy:

    Punjab was fighting militancy which was the nation’s war
    Before militancy the Punjab State was a revenue surplus State.
    Revenue deficit began in 1984-85 during the militancy period.
    The debt started accumulating during the militancy period.

    By 1995-96 the debt had risen to Rs. 13,630 Cr.

    The debt to Gross State Domestic Product (GSDP) ratio in 1995-96 was 35.30 %
    The Central Govt. rather than giving economic package/grants began giving loan on interest to the State for fighting militancy.Special Term Loan given with interest - Rs. 5800 CrConstitutionally, politically and administratively it was the duty of the Central Govt. to fight the anti-national militancy.
    At that time, State Congress Govt. instead of protesting against the debt, started paying the installments and paid up 2694 Cr.

    During the period, when I was the Chief Minister, I succeeded in getting the loan waived off from the then Prime Minister Sh. I.K.Gujral.

    Loan Paid during Cong. regime - 2694 Cr
    Waived off - 5029 Cr

    2. Slow Down of Economic Growth due to Militancy

    Due to the fear and threat of militancy there was a flight of industry and trade from the State to the neighboring States.

    3. Industrial package to neighbouring states of Himcahal, J&K and Uttaranchal

    Due to the industrial package given to these States which provided that industries established in these States till 2010-11 shall be exempt from payment of taxes for 10 years, a lot of existing industry shifted from Punjab to these States.

    Also no new industry came to Punjab and that went to these neighboring States which provided these benefits.

    Number of Units shifted from Punjab - 274
    Investment in these units - 3700 Cr

    Fall in collection of Central Excise from 7-01-03 :-
    Year Collection
    2002-03 2654 Cr.
    2003-04 2786 Cr.
    2004-05 1896 Cr.
    2005-06 819 Cr.
    2006-07 867 Cr.
    2007-08 656 Cr.
    2008-09 729 Cr.

    With base of 2003-04 the total loss has been - 8963 Cr
    Result, as indicated by above figures –


    Flight of industry from the state
    Loss of employment in the state
    Loss in state revenues
    Slowdown in the economic growth of the state

    3. Decreasing share of the State Govt. in the allocation of taxes collected by the GoI

    Successive Finance Commissions have worked to the disadvantages of the State.
    The GoI collects all the revenue from important sources like Income Tax, Central Excise & Customs, and Corporate Tax etc.
    Approximately 66-67% of these collections are retained by the GoI & balanced is devolved to the States.
    In 1974-75, Punjab got 2.450 % of these devolved taxes.
    Now its share has been decreased to 1.389%.
    It should be at least 2% if not more.

    DEBT POSITION DURING THE PREVIOUS SAD/BJP GOVT.

    Just as the militancy period was getting over, the SAD - BJP Govt. came to power in 1997.
    The debt to Gross State Domestic Product (GSDP) ratio in 1995-96 (end of militancy) was 35.30%.
    Almost throughout the entire tenure of the SAD – BJP govt., the debt to GSDP ratio remained stable at about 35-37%

    DEBT POSITION DURING CONGRESS GOVT. 2002-07

    Rather the Congress Govt. mismanaged the finances.
    The ratio of debt to GSDP in increased tremendously
    2001-2002 - 40.82%
    2002-03 - 44.81 %
    2003-04 - 45.95 %
    2004-05 - 46.56 %
    2005-06 - 44.95 %
    2006-07 - 39.88 %

    The ratio came down in 2006-07 because the Special Term Loan Waived off by Sh. I.K.Gujral was adjusted in accounts in 2006-07.

    Otherwise the ratio of debt to Gross State Domestic Product (GSDP) would have been 43% during 2006-07.


    SAD – BJP GOVT. From 2007


    The State Govt. by increase in revenues has been able to bring the debt to Gross State Domestic Product (GSDP) ratio to 32.85% from the peak of 46.56% in the Congress regime.

    INCREASE IN REVENUE FROM 2007


    1. VAT & CST increase
    2006-07 - 5136 Cr
    2007-08 - 5871 Cr
    2008-09 - 7043 Cr
    2009-10 (Target) - 8000 Cr

    Inspite of recession increase of 16% per year

    2. Excise
    Previous Congress govt.
    · Collection in 2006-07 : Rs. 1363 Cr
    Increase minus (-) 13.2%

    Present SAD-BJP Govt

    · Collection in 2009-10 : Rs. 2000 Cr
    (Avg increase of 13.92%)


    DEBIT WAIVER ISSUES

    The Finance Commission is a constitutional authority set up every 5 years.
    It visits the fiscal condition of all the States and provides its suggestions.
    The Thirteenth Finance Commission visited the State of Punjab when I led the delegation from the State.
    In the memoranda submitted & in my speech the issue of debt was mentioned and emphasized.
    The then Principal Secretary Finance wrote to thirteenth Finance Commission to write off/reschedule the small savings loan.
    Also in the meeting with the Planning Commission and the Hon’ble Prime Minister and Finance Minister, the issue of debt has been raised by me.
    On the recommendations of the Finance Commission, a committee under the Secy. Expenditure, GoI was set up to :-

    “Explore ways to assist the States in getting out of their fiscal stress along with measures to be taken by the States to prevent the recurrence of such a situation in the future.”


    This Committee was set up not only for Punjab but included West Bengal and Kerala also.
    The Committee met the Punjab officials along with the officials of Kerala and West Bengal on 10th and 20th August where the State officials presented the fiscal situation of the State.
    Thereafter, no communication, deliberations or proceedings of the meeting or any advise, suggestions etc has been received by the State Govt. till date from the Central Govt.
    I have written to the Union Finance Minister to intimate the latest position as the Committee set up for this purpose was to submit its report by the end of August
    Source of loans by the state Govt.[

    Ø Central Govt. 3,549 Cr 5.5%
    Ø National Small savings 21,877 Cr 33.70 %
    Ø Market loans 23,820 Cr 36.69 %
    Ø RBI & NABARD 1,786 Cr 2.75 %
    Ø State Bank & 2,658 Cr 4.09 %
    Commercial Banks
    Ø HDFC & HUDCO 483 Cr 0.74 %
    Ø Stae Provident Fund 10,119 Cr 15.59 %
    Ø Bonds, LIC, Insurance 632 Cr 0.97 %
    and Pension and others

    Even if the Centre Govt. wants to be magnanimous and waives the loan it can be only waive its loan which is Rs. 3549 Cr.
    The National Small Saving Funds is lent to the States at 10.5% whereas GOI is paying 8.5% to the public investors.
    The GOI is acting as a money lender and forcing the States to take this loan on their tenures at a higher rate of interest.

    SUBSIDIES

    In a welfare state it is the duty and priority of the state to work for the economic welfare of needy sections of the society.
    Generally the interventions of the state to help the needy sections of the society are termed as populist measures.
    World over, different sections of the society are being provided subsidy.

    Subsequently - Subsidy to Agriculture

    Approximately 70% of the population is dependent on agriculture in Punjab.
    The cost of the inputs has increased phenomenally whereas the sale price of the Crops has not at the same rate.
    There has been saturation in the agricultural productivity since 1980.
    Accordingly the economic condition of the farmers has deteriorated in the state resulting in heavy debt.
    99.58% of the small and marginal farmers are living below the poverty line.
    The debt of the farmers, which was 5700 cr in 1997, has jumped to 30,394 Cr in 2008.
    So it has become imperative to provide subsidies to agricultural and other deprived and needy sections of the society to sustain them.
    Moreover it is important and necessary for the National Food security to feed the country.
    Agriculture, which already is not a profit making venture, if not subsidized would lead to drastic fall in the agriculture production creating food shortage not only in the state but in the whole country leading to enormous expenditure on import of foodgrains.
    This may even lead to lawlessness and anarchy when such a large number of population deserts agriculture and is without work and there are millions without adequate food.
    In an article in The Tribune, it was mentioned that at this point, India is home to 50% of starving population of the world.


    SUBSIDIES TO AGRICULTURE BY FOREIGN COUNTRIES.

    According to data available for the year 1999, following is the subsidy being provided per farming family :-

    Japan 26,000 US dollar
    USA 21,000 US dollar
    European Countries 17,000 US dollar
    OECD Countries 11,000 US dollar
    Canada 9,000 US dollar
    India 66 US dollar

    Organization for Economic Cooperation and Development (OECD) Countries are providing 42% of the agricultural production as subsidies.
    India is only providing 1.5% of the agricultural production as subsidy.
    In the developed countries only 2 to 5% of the population is dependent on agricultural and getting such huge subsidies.
    Whereas in India where 69% of the population is dependent on agricultural, the subsidy to agriculture are negligible.
    In the light of the above, the controversy on the issue to provide subsidies, especially to agricultural and rural population, is totally misplaced and wrong.

    Total Subsidies by Punjab Govt.

    The Punjab Govt. - as is the duty and priority of welfare state, is providing subsidies in the following fields:

    Ø Power subsidy 3,120 Cr.
    Ø Relief for drought of Kharif 2009 300 Cr.
    Ø Atta Dal Scheme 350 Cr.
    Ø Education, Health, Public Health etc. 1,000 Cr.
    Ø Scholarship and stipends 80 Cr.
    Ø Old age Pension 400 Cr.
    Ø Shagun Scheme 80 Cr.
    Ø Welfafe of SCs/STs 19 Cr.
    Total 6349 Cr.
    The SAD-BJP govt. is committed to the welfare of the needy and distressed section of the society.
    The SAD-BJP govt. had contested the 2007 elections and had these subsidies as its agenda.
    It is the duty and priority of the govt. to subsidies the sections of society who are unable to survive in the current adverse economical system.


    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

    ENSURE COMPLETION OF ALL NATIONAL HIGHWAYS BY NOVEMBER 2011-SUKHBIR REVIEWS PROGRESS OF NATIONAL HIGHWAYS
    DCs MADE ACCOUNTABLE FOR ENSURING SMOOTH ACQUISITION OF LAND FOR ROAD PROJECTS


    Chandigarh, October 19: Punjab Deputy Chief Minister Mr. Sukhbir Singh Badal reviewed the progress of major infrastructure projects and road projects and set the target November 2011, for completion of all ongoing 6/4 laning projects of National Highways. In a significant decision Mr. Badal asked Chief Secretary Mr. SC Agrawal to issue instructions making all concerned Deputy Commissioners accountable for smooth acquisition of land and transfer of the same to NHAI for timely completion of road projects.

    Accompanied by PWD(B&R) Minister, Mr. Parminder Singh Dhindsa, , the Deputy Chief Minister presiding over the meeting yesterday evening said that once a project was given financial approval by the NHAI , it becomes the deemed duty of all departments of the State government to expeditiously remove all bottlenecks, to ensure scheduled completion of National Highways. He said that the National Highways were the ‘national arteries’ and he would not tolerate any department obstructing the work of their construction and expansion.

    The Deputy Chief Minister said that Punjab would be the first state in the country that would have all its major cities interconnected with 4/6 lane road. He said that by November 2011 major road projects including 4-laning of Zirakpur – Patiala (NH-64) road ( Rs. 460 crore ), 4-laning of Patiala – Bathinda road (Rs. 1400 crore ) and 6-laning of Sher Shah Suri Marg (NH-1) from Panipat to Jalandhar (Rs. 2700 crore) would change the face of the State. He said that in one of unique project of its own kind this 6-Lane National Highway would have access control with 101 Flyovers to be constructed in all cities falling along this road and underpasses to be constructed to cross the main roads. He said that 4-laning of Dhilwan to Amritsar Wagha Border ( Rs. 470 crore ), 4-laning of 102 km long Pathankot-Amritsar (NH-15) with an estimated cost of Rs.800 crore , 4-laning of 45 km long Kurali to Kiratpur Sahib (NH-21) road ( Rs. 309 crore ), 4-laning of 92 km long Ludhiana – Talwandi ( Rs.480 crore ) would make an important contribution in easing out the traffic on these routes.

    The Deputy Chief Minister constituted a high level committee under the Chairmanship of the Chief Secretary Mr.S.C.Agrawal who would weekly hold the meeting of concerned departments at remove all inters departmental bottlenecks in the meeting. The Chief Secretary was asked to depute one special Executive Magistrate to complete the pending acquisition of land on priority basis.
    The Chief Secretary assured that all the concerned departments were working in tandem with NHAI with a single aim of completing various projects on schedule.
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

    47.64 LAKH TONNES PADDY PROCURED IN PUNJAB`

    Chandigarh, October 19: Government agencies and private millers procured more than 47.64 lakh tonnes of Paddy till last evening.

    A spokesman of Punjab Govt. said here today that out of total procurement in all the procurement centers of Punjab, Government agencies procured 46.47 lakh tonnes (97.5%) whereas private traders procured 1.17 lakh tonnes (2.5%) of paddy. Till October 18, PUNGRAIN had procured 12.91 lakh tonnes (27.8%) whereas MARKFED procured 9.80 lakh tonnes (21.1%), PUNSUP procured 11.22 lakh tonnes (24.2%), PSWC procured 5.94 lakh tonnes (12.8%) whereas PAIC was able to procure 4.17 lakh tonnes (9.0 %) of paddy.

    The Central Government agency FCI had been able to procure 2.40 lakh tonnes (5.2%).
    The spokesman added that District Ferozepur with 6.76 lakh tonnes of procurement was leading in procurement operations whereas district Jalandhar with 4.60 lakh tonnes of procurement was at second slot and District Faridkot with 3.88 lakh tonnes of procurement ranked at third position.

    The State Government has set up almost 1700 procurement centers and activated its total machinery to ensure smooth procurement of paddy, the spokesman added.
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

    PSWC to conduct personal hearing of complaints-Kaushal

    CHANDIGARH, OCTOBER 19:
    Punjab State Women Commission would conduct personal hearing on the complaints of victims received by the commission on 21 and 28-10-2010.

    Disclosing this here today, Principal Secretary, Punjab Government and Member Secretary, Punjab State Women Commission, Mr. Sarvesh Kaushal said that State Women Commission would conduct the personal hearing on complaints received from the victim women residing in Ferozepur, Faridkot, Muktsar and Moga districts of Punjab on 21-10-2010 at Canal Rest House, Canal Colony, Ferozepur Cantt while complaints received from the victim women residing in Ludhiana district, personal hearing would be conducted at Circuit House (Ferozepur Road, opposite Ansal Plaza), Ludhiana on 28-10-2010.

    He further said that Bibi Gurdev Kaur Sandha, Chairperson, Punjab State Women Commission and Smt. Pushpinder Kaur Mazbur, Smt. Kiranjit Kaur, Smt. Ranjit Kaur Bhatti and Smt. Parveen Sharma, Members of the commission would conduct the personal hearing of above mentioned districts. At the time of personal hearing, both parties were called on above said dates. Adding further he said new complaints could also be submitted by the victims to the commission.
    Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

    BADAL TELEPHONICALLY CONGRATULATES COMMONWEALTH GAMES MEDAL WINNERS FROM PUNJAB

    TO HONOUR THE WINNERS WITH CASH PRIZE AT A FUNCTION SHORTLY


    CHANDIGARH OCTOBER 18:
    Punjab Chief Minister Mr. Parkash Singh Badal today felicitated all the 17 sportspersons from Punjab telephonically, for doing proud to Punjab as well as the country after winning 7 gold, 8 silver and 4 bronze medals in different sports disciplines in the 19th Commonwealth Games held at New Delhi from October 3 to 14.

    Disclosing this here today a spokesperson of the Chief Minister’s office said that Mr. Badal also announced to honour these sportspersons at a function to be held shortly in a befitting manner as per the state's sports policy. The medal winners would get a cash prize of Rs 7 lac for gold, Rs 5 lac for silver and Rs 3 lac for bronze. He said; “We in Punjab, are proud of these winners for their remarkable feat as it would go a long way to give a major boost to Indian sports". The Chief Minister hoped that these players after winning these medals in the Commonwealth Games would surely become role models for the budding players of our state to promote sports at international fora.

    It may be recalled that the sportspersons who registered themselves in the Medal tally included Mr. Abhinav Bindra (Gold Medal in Air Rifle 10 meters-pair & Silver in Air Rifle 10 mt. single), Mr. Ronjan Sodhi (Two Silver Medals in Double Trap), Mr. Manavjit Sandhu ( One Silver in Trap shooting-pair & Bronze in Trap shooting-Individual), Ms. Heema Sidhu ( Gold in Pistol Shooting-Pair & Silver in Pistol Shooting-individual), Mr. Mansher Singh (Silver in Trap shooting-Pair), Ms. Mandeep Kaur & Ms. Manjit Kaur (both Gold in 4X400 meters Relay), Ms. Harwant Kaur (Silver in Discus Throw), Ms. Gagandeep Kaur (Gold in Archery), Mr. Amandeep Singh (Bronze in Boxing) and five Hockey team players Mr. Rajpal Singh, Mr. Sarwanjit Singh, Ravipal Singh, Mr. Gurbaz Singh and Mr. Shivender Singh for winning Silver Medal.





   
NRI News Media

 

Read More