Chandigarh: Amid deteriorating finances, the AAP government in Punjab has pitched for a £10 billion special package from the Centre as it grapples with mounting dues and subsidies. The demand for the package has been made by Punjab chief minister Bhagwant Mann, who announced several sops, including free 300 units of electricity to every household every month.
The moves have come despite the state having unpaid subsidy bills of more than £900 million to the distribution entities and government departments having arrears of over £260 million.
A recent study by the Reserve Bank of India had identified Punjab among the five most fiscally vulnerable states, and had warned that freebies would accentuate the crisis. After taking over as the chief minister, Mann had met Prime Minister Modi in New Delhi on March 25 and sought the special package from the Centre to put the state’s economy back on track.
He also raised the issues of Punjab during the recent meeting of the NITI Aayog governing council and sought funds for sectors like food processing and a special package to strengthen the canal system.
