Capt asks state depts to further rationalise spending

The Chief Minister was at a video conference meeting of the Empowered Committee of Cabinet on Fiscal Management.




Expressing grave apprehensions of prolonged impact of Covid-19, Punjab Chief Minister Captain Amarinder Singh Monday directed all departments to further rationalise their expenses.

The Chief Minister was at a video conference meeting of the Empowered Committee of Cabinet on Fiscal Management.

A government statement said that the Chief Minister made it clear that capital expenditure in essential sectors such as health education and infrastructure would be retained at Rs 5000 crore, notwithstanding the economic crisis facing the state, which was expecting a shortfall of nearly 30 per cent in the Total Revenue Receipts (TRR) in FY 2020-21 on account of the Covid and lockdown effect.

Reviewing the economic situation of the state amid the unprecedented crisis, the Chief Minister said the focus of his government was on ensuring that salaries and pensions continue to be paid on time, along with power subsidy to the PSPCL. No compromise could be made to ensure funding for all frontline departments, such as health, police and the local bodies, which were working 24X7 in battling the disaster, he added.


Coronavirus Explained

Click here for more

In spite of its strained finances, the state has successfully paid all grants to Local Bodies and PRIs, ensuring they do not face problems in disbursement of salaries, the Chief Minister noted.

To help the state tide over the critical economic situation, Captain Amarinder underlined the need for fast-paced industrial revival and called for greater thrust on the development of the industrial parks. The focus, he said, should be on attracting more investments, particularly from industries and businesses seeking to shift out of China in the wake of the pandemic.

The Chief Minister reiterated that power subsidy to the farmers would continue and there was no question of the state government accepting the condition to replace it with direct cash transfer for availing the additional borrowing limit allowed by the Centre. This so-called power reform was violative of the country’s federal structure, he said, adding that he would write to the Prime Minister on this issue as the central government could not put conditions on states for availing loans.

? The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines

For all the latest Chandigarh News, download Indian Express App.

Source: Read Full Article