Punjab seeks Rs 51,102 crore fiscal stimulus from Centre to overcome economic crisis caused by COVID-19

The stimulus package demanded by the state includes Rs 21,500 crore direct stimulus, CCL debt waiver and 100% funding of Central schemes.

Facing cash crunch due to the coronavirus pandemic and lockdown, the Punjab government has sought a fiscal stimulus of Rs 51,102 crore from Centre to help the state overcome the economic crisis.

The stimulus package demanded by the state includes Rs 21,500 crore direct stimulus, CCL debt waiver and 100% funding of Central schemes by the Government of India, the Chief Minister's Office (CMO) said in a statement.

A draft memorandum to this effect was approved on Wednesday by the Council of Ministers at a meeting chaired by Chief Minister Amarinder Singh, the statement said.

States have suffered massive financial loss due to the closure of economic activities after the nationwide lockdown was imposed on March 25.

Among the demands by Punjab is Rs 6,603 crore funding for improvement of public health infrastructure from a long-term perspective, setting up an Advanced Centre of Virology at a cost of Rs 650 crore and an assistance of Rs 5,068 crore to contain the spread of COVID-19 contagion in rural areas.

Amarinder Singh-led government has also sought a Rs 12,560 crore funding for agriculture and farming sector in the state. This will be used mainly for upgradation of farm gate infrastructure, providing income support, interest subvention, with an additional amount of Rs 1,161 crore identified as assistance needed for animal husbandry and dairy sector.

The draft memorandum proposed a National Urban Employment Guarantee Act (NUEGA) to guarantee employment in urban areas, along with an additional capital outlay of Rs 2,302 crore under schemes like AMRUT, Smart City, and PMAY.

The state government has sought an assistance of Rs 3,073 crore for human resource development which includes online education, post-COVID preparedness of educational institutions, and to meet other requirements of school education and skill development.

The statement noted that Punjab's outstanding debt to GSDP ratio is 40%, which is significantly higher than states such as Maharashtra (17.9%), Karnataka (18.2%) and Gujarat (20.2%).

Several other key decisions were taken at the cabinet meeting chaired by Singh which includes Rs 5,665 crore Rural Transformation Strategy through funds convergence. The move is aimed at generating employment and addressing COVID-19 fallout in rural areas.

The Cabinet also approved the implementation of Swachh Bharat Mission (Gramin) (SBM-G) phase II across the state, in convergence with 15th Finance Commission Grants (FCG), MGNREGA and other Central/state sponsored schemes.