Punjab CM Bhagwanti has demanded the package Value, who announced several concessions including free 300 units of electricity to every household every month. This step has been taken despite the outstanding subsidy bills of over Rs 9,000 crore being outstanding by the state to distribution institutions and government departments with over Rs 2,600 crore.
A recent study by reserve Bank of India Punjab was identified among the five most financially vulnerable states, and warned that freebies would exacerbate the crisis.
After taking over as chief minister, Mann met PM Modi in New Delhi on March 25 and demanded a Rs 1 lakh crore package to bring the state’s economy back on track. He also raised the issues of Punjab during the recent meeting. NITI Aayog The Governing Council and demanded funds for sectors such as food processing and a special package to strengthen the canal system.
“To get rid of Punjab’s debt, demanded Rs 50,000 crore per annum for two years. It was a part of my speech. I had demanded it earlier also,” Mann had said after the meeting. The state has a debt of more than Rs 3 lakh crore. Punjab’s debt to GSDP ratio is estimated to increase to 46.8% in 2019-20 from 42.5%. reserve Bank of India study.