CHANDIGARH: Another confrontation is on the cards between the AAP-led Punjab government and the Centre following the alleged cut in the borrowing limit of the cash-strapped Punjab government by Rs 18,000 crore. Also, the Rs 2,600 crore special assistance grant for the development of capital assets and Rs 800 crore grant under the National Health Mission (NHM) has been stopped. This means a total hold-back of Rs 21,400 crore.
The Central government’s step is attributed to the state government’s switchover to the Old Pension Scheme (OPS) and wellness centres being renamed as Aam Aadmi clinics. There has also been a sharp rise in the revenue deficit of the state. This year, the state’s revenue deficit is projected at Rs 1,412.43 crore, which is far less than that of the last year. The tax revenue too has fallen. Sources in the state finance department said the borrowing limit has been slashed from Rs 39,000 crore to Rs 21,000 crore.
The Special Assistance Grant for Development of Capital Assets of Rs 2,600 crore and Rs 800 crore grant under the National Health Mission (NHM) have been stopped. These cuts had been imposed for violating norms of capital expenditure used to create capital assets such as roads and flyovers, besides the renaming of Ayushman Bharat Health and Wellness Centres as Aam Aadmi clinics and using photos of Chief Minister Bhagwant Mann on buildings as the scheme allows only printed graphics.The Centre also had apprehensions that the state government would stop contributing Rs 3,000 crore annually to the Pension Fund Regulatory and Development Authority (PFRDA).