Punjab's Finance Minister, Harpal Singh Cheema, has made a strong appeal to the central government for a special economic package to help the state navigate its significant financial challenges. The request was formally presented during a pre-budget consultation meeting chaired by Union Finance Minister Nirmala Sitharaman in New Delhi.
Key Demands for Fiscal Support
During the crucial meeting, Minister Cheema outlined several pressing financial issues requiring immediate attention from the Centre. A central point of his appeal was the urgent need for the release of pending Rural Development Fund (RDF) payments. The state is awaiting a substantial sum of Rs 3,132 crore under this head, which is critical for supporting agricultural and rural infrastructure.
Furthermore, Cheema emphasized the importance of continuing the Goods and Services Tax (GST) compensation regime for the states. He argued that extending this support is essential for Punjab to maintain its committed expenditure on public welfare and development projects without falling into a deeper fiscal deficit.
Addressing Legacy Debt and Security Costs
The Finance Minister also brought to the table the historical burden inherited by the current state government. He highlighted the massive legacy debt accumulated by previous administrations, which continues to strain Punjab's economy. In addition to this, Cheema pointed out the state's significant expenditure on maintaining national security, given its sensitive border location.
He reasoned that due to these unique and heavy financial responsibilities—servicing old debt and bearing high security costs—Punjab deserves special consideration and assistance from the Union government. This assistance, he proposed, should come in the form of a tailored economic package that acknowledges these extraordinary circumstances.
A Push for Agricultural and Industrial Growth
Beyond immediate fiscal relief, Minister Cheema's submissions included longer-term growth proposals. He advocated for policies that would boost the state's agricultural sector and stimulate industrial development. The requested special economic package is envisioned not just as a bailout but as a catalyst for sustainable economic revival in Punjab.
The pre-budget consultation served as a key platform for states to voice their concerns before the formulation of the national budget. Punjab's representation, led by Cheema, firmly positioned the state's financial health as a matter requiring prioritized, collaborative action between Chandigarh and Delhi to ensure stability and growth for its residents.
