Punjab: Discretionary grants of CM, ministers may be cut by 30%

Tribune News Service

Ruchika M Khanna

Chandigarh, August 27

The government is all set to reduce the discretionary grants of the Chief Minister from Rs 50 crore to Rs 37 crore and that of all its ministers from Rs 1.5 crore per annum to Rs 1 crore per annum.

This will be the second time during the calendar year that the discretionary grants of the ministers will be reduced. Earlier in January, the grants of the Cabinet Ministers were reduced from Rs 3 crore to Rs 1.5 crore. During the initial days of the Congress rule, the ministers used to get Rs 5 crore.

Likely figures

CM Rs 50 cr to Rs 37 cr

Ministers Rs 1.5 cr to Rs 1 cr

2nd in a year

• In January, the grants of the Cabinet Ministers were reduced from Rs 3 crore to Rs 1.5 crore
• During the initial days of the Congress rule, the ministers used to get Rs 5 crore

Interestingly, during the four-month-long Charanjit Singh Channi rule from September 2021 onwards, he had reportedly used Rs 200 crore ahead of the elections. The AAP government, in January this year, had fixed this fund at the disposal of the CM to Rs 50 crore.

After the Aam Aadmi Party government was formed in March 2022, the ministers had no discretionary grants at their disposal. It was only in January this year that the Cabinet had approved a policy for disbursement of discretionary grants by the Chief Minister and his Council of Ministers.

The issue, to be taken up for discussion at the meeting of the Council of ministers scheduled for Monday, has led to heartburn among some ministers. Since these grants are used by ministers for development and welfare works to be undertaken in any area they visit, the reduction in grants is being seen by them as a “limitation”.

On the other hand, the reason why the grants are being reduced is to bring more financial accountability and also because of the depleting fiscal health of the state. In the first quarter of this year (April to June), the government has spent just Rs 449.18 crore as capital expenditure (on building assets) against a total expenditure of Rs 26,810.14 crore, which is less than 2 per cent. By reining in discretionary grants, the government hopes to save money and utilise it for building capital assets.

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