Punjab delays bills worth Rs 1,600 cr
Wednesday, 22/08/2012
http://www.tribuneindia.com/2012/20120822/punjab.htm#4
Chandigarh: Punjab's fiscal crisis seems to have deepened with the state government holding payments worth Rs 1,600 crore. The government is even facing problems in compensating the Punjab State Power Corporation Limited (PSPCL) for providing free power to the farm sector.
The government is required to pay Rs 375 crore every month to the PSPCL. Sources said the National Thermal Power Corporation (NTPC) that supplies power to the PSPCL had now started directly approaching the government to clear the latter's dues.
Owing to a mismatch in revenue and expenditure, the authorities concerned have told the state treasury to give priority to salary of employees, pension of retired persons, payments under the shagun scheme, old-age pension and payments under some other welfare schemes.
The treasury has verbal orders to delay payments against all other bills, including those related to development projects.
Sources said officials concerned held a meeting with Finance Minister Parminder Singh Dhindsa this afternoon to inform him about the current fiscal situation.
The government has already borrowed Rs 4,500 crore from various sources in the Centre till August 15 against the limit of Rs 13,000 crore for the current fiscal year. "We had set a target for taking this much loan by September 15. However, owing to fiscal crisis, we have to take it in advance," said a senior official. In fact, the government had asked for more money, but the Union Finance Ministry did not clear it.
On the other hand, traders have warned the government of state-wide protests in case their refunds related to VAT were not cleared by the end of this month. The sources said VAT refunds worth Rs 131 crore were pending. "The government has been delaying the refunds on one pretext or the other," said a senior trade leader.
"After filing the return, it takes at least six to eight months to get refund, which affects our business adversely," said Gursharan Singh, an industrialist from Jalandhar.
Chairman of Small Industries Development Board Inderjit Singh Pardhan said a meeting of the board would be held on August 26 and 27 to discuss various issues, including VAT refund. "We have also invited Chief Minister Parkash Singh Badal to the meeting," he said.
