To tackle financial crisis, state mulls opening liquor vends

Ruchika M Khanna

Tribune News Service

Chandigarh, April 14

Revenue generation and cutting down Punjab’s expenditure by almost Rs 1,500 crore will help the state tide over the financial crisis. While revenue generation is being planned through a gradual revival of economic activity and reopening of government services in cities that have had no case of Covid-19, the state also plans to cut down on its expenditure by imposing severe austerity measures.

A meeting of the Cabinet Sub-Committee on Fiscal Management is scheduled for Wednesday, where financial measures to reduce the economic cost of Covid are to be discussed. A top government functionary told The Tribune that opening of liquor vends, especially in areas not affected by the pandemic, was on top of the agenda. “But this will be done in case the Centre announces relaxations in retail businesses in areas not affected by the pandemic on April 20,” the official said.

A senior official in the Excise and Taxation Department said the government was aware of certain liquor licencees selling stocks on the sly, even amid the curfew.

Cuts on petrol oil lubricants (fuel bill) of the government are being imposed. Each department will also be drastically lashing the office expenditure as curbs on buying any new furniture, equipment or renovation will be imposed. Though there is no likelihood of a salary cut on employees, as has been announced by some other states, the exercise to build public opinion on “voluntarily” giving up a part of the salary for some time, at least among ministers and legislators, to tide over the economic crisis, is already in place.

With the Centre still owing Rs 4,000 crore to Punjab as GST dues, and tax realisation from purchase of wheat for the Government of India delayed this year, the fiscal condition is not too bright. Other than Rs 1,136 crore that Punjab received towards its pending GST dues, the state only received Rs 350 crore as value added tax collected for February.

Setting a precedent, Rural Development and Panchayat Minister Tript Rajinder Singh Bajwa yesterday announced that he was willing to go ahead with a pay cut of 30 per cent for six months. Meanwhile, AAP MLA Kanwar Sandhu, too, said the state would have to redraw its budget for this fiscal to provide for the fight against Covid. “All money earmarked for sports, tourism, etc, will now have to be diverted for health and social security,” he said.