Punjab demands greater financial support during pre-Budget meet with FM

Punjab has sought Rs 1,000 crore Central assistance to strengthen its police infrastructure and security efforts in the border districts, among a slew of other demands, at a pre-budget meeting with Union Finance Minister Nirmala Sitharaman held in Jaisalmer, an official statement said on Sunday.

Industrial incentives similar to those provided to Jammu and Kashmir and the neighbouring hill states were also sought to support the MSMEs in Punjab's border and sub-mountainous regions, a Punjab government statement said on Sunday.

Quoting Punjab Finance Minister Harpal Singh Cheema, the statement said the state has strongly raised the demand to restore NABARD's Short-Term Seasonal Agricultural Operations (ST-SAO) limit to Rs 3,041 crore, from the reduced limit of Rs 1,100 crore, for FY 2024-25.

 

Cheema said this restoration is vital to prevent farmers from turning to moneylenders, aligning with the 'Sahakar se Samriddhi' principle.

Several states raised this issue which was discussed at length, he added.

For road connectivity under PM Gati Shakti in Rajpura, the Punjab government has requested Rs 100 crore to construct a 5.6 km long, 45 mt wide approach road connecting NH-44 to the integrated manufacturing cluster (IMC) in Rajpura.

This funding is essential for the timely completion of road construction and the successful implementation of the industrial cluster, Cheema said.

Referring to the Vande Bharat train connecting Amritsar with New Delhi, Punjab government requested for a similar train to connect Bathinda, Punjab's agricultural and commercial hub, with the national capital to ensure seamless connectivity for the Malwa region of the state.

Cheema also proposed financial support to address crop residue management in Punjab, saying despite providing 1.45 lakh crop residue management (CRM) machines since 2018, high operational costs remain a challenge.

The Punjab government has proposed an incentive of Rs 2,500 per acre, with Rs 2,000 per acre from the Centre and Rs 500 per acre from the state, as per the statement.

Out of the total estimated cost of Rs 2,000 crore for this initiative, the government of India has been requested to provide Rs 1,600 crore as budgetary support, the statement said.

Cheema also requested the Centre for a special budgetary allocation for paddy diversification, saying diversifying cultivation across 10 lakh hectares could result in substantial savings of more than Rs 30,000 crore.

The Punjab government has proposed allocating a portion of these savings towards a comprehensive diversification package, Cheema said.

For the Pradhan Mantri Awas Yojana (Gramin) scheme, Cheema proposed enhancing the grant from Rs 1.2 lakh to Rs 2.5 lakh per beneficiary to accommodate rising construction costs.

The minister also highlighted the need to release pending funds under the National Health Mission (NHM) amounting to Rs 1,119 crore, besides requesting an increase in the honorarium for cook-cum-helpers under the PM Poshan Abhiyaan from Rs 600 to Rs 2,000 per month.

Additionally, Punjab sought support for urban transportation, requesting Rs 300 crore for the procurement of 250 electric buses and the installation of charging points.

The state also called for reimbursement of procurement costs by the government of India, modernisation of driving licence testing with advanced technology, and reimbursement of pending rural development fee (RDF) amounting to Rs 6,857 crore.

Expressing gratitude to Sitharaman for giving Punjab the opportunity to present its suggestions, Cheema said the state's demand for an incentive package to address the unique challenges faced by it, particularly due to its proximity to a hostile border with Pakistan, is crucial to bolster infrastructure and security measures.

He also expressed hope that the upcoming Union Budget will act as a catalyst for fostering citizen welfare, driving regional development, and spurring economic growth, the statement said.