Sinha: Punjab doesn’t need any package

Ruchika M Khanna

Tribune News Service

Chandigarh, May 26

The Punjab Government’s hope to get a special economic package from the BJP-led NDA government to restructure its sagging economy has been dashed to the ground. Union Minister of State for Finance Jayant Sinha today said Punjab did not need any special package as it was a “prosperous” state.

“Punjab is on the path of prosperity… where is the need for a package?” Sinha said, when asked if the Centre was considering granting a special economic package to the state. He was speaking on the sidelines of an interaction organised by the CII between the minister and representatives of the industry.

“It is wrong to suggest that the BJP is biased against the Akali Dal and is thus denying assistance to Punjab. The Akali Dal is a valued and long-standing partner of the BJP, and it will be given whatever support and assistance is needed by it.

But you must understand that there is a framework established for granting revenue to each state, and it is as per this framework that revenue is shared with states,” he said.

Ever since the NDA government came to power at the Centre, the ruling Akali-BJP government in Punjab has been seeking special assistance from it. 

In August last year, Union Finance Minister Arun Jaitley had rejected Punjab’s demand. Jaitley had asked Punjab to rationalise its power subsidy, which was more than its revenue deficit. He also asked the state to route its infrastructure and rural development fund through the state’s consolidated fund. Chief Minister Parkash Singh Badal, however, continued to pursue the matter with the Centre. 

Sinha made the Centre’s stand on the issue clear today. He said he was aware of the state’s financial position.