Ring-Fence farmers debt relief funds to prevent diversion by the punjab Government - 10/03/2008
Mr. P Chidambaram
Finance Minister of India
Room No.134, North Block,
New Delhi 110 001
10 March 2008
Dear Mr Chidambaram,
RING-FENCE FARMERS DEBT RELIEF FUNDS TO PREVENT DIVERSION BY THE PUNJAB GOVERNMENT
I understand that the bankrupt Punjab government has approached you for between Rs.2000 crores and Rs.5000 crores as an emergency advance against the cooperative bank loans to farmers that qualify for write-off.
This is the same government that has attacked your historic farmers’ debt relief proposals tooth and nail, whilst not evening having a spare rupee to offer to its suffering farming community.
As you are aware this government does not even have the funds to satisfy its flag-ship atta-dal scheme; even these funds have to be borrowed.
There is a major risk that the Punjab government will divert part of the funds intended for farmers to funds its substantial current deficit.
That is why we must ring-fence these funds for the intended use and ensure that funds are only released after full assurances have been received from the state government. In addition, kindly incorporate stringent penalties in the event of diversion.
You may even need to by-pass the state government completely and route the benefit directly to the farmers through central government directives to the concerned banks. Otherwise we may enter the quagmire of claim and counterclaim, with the Punjab government, and possibly other state governments, deliberately delaying the relief to farmers.
Kind regards,
Yours sincerely,
Jassi Khangura MLA
Halqa Qila Raipur, Punjab
c.
1. Hon. Prime Minister of India
2. Governor Punjab
3. CM Punjab
4. Governor Reserve Bank of India
5. Union Agriculture Minister
6. Union Finance Secretary
7. Union Agriculture Secretary
8. Chief Secretary Punjab