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With GST grant set to end, Punjab’s AAP regime stares at tough times ahead

With GST grant set to end, Punjab’s AAP regime stares at tough times ahead

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HomeCitiesChandigarhWith GST grant set to end, Punjab’s AAP regime stares at tough times ahead
With GST grant set to end, Punjab’s AAP regime stares at tough times ahead
The revenue shortfall comes at a time when the AAP is looking to come good on its pre-poll promises of different freebies to voters.



Written by Kanchan Vasdev | Chandigarh |
Updated: May 6, 2022 6:20:02 am
With GST grant set to end, Punjab’s AAP regime stares at tough times aheadPunjab CM Bhagwant Mann (File)
Saddled with a debt of Rs 3 lakh crore it inherited from the previous regime, Punjab’s Aam Aadmi Party government is staring at a financial crisis with Centre set to stop the GST compensation grant from June. After Centre’s move, which applies to other states as well, Punjab’s fiscal deficit will increase by Rs 18,000 crore annually from next year.

As the state will get Rs 4500 crore for this year’s first quarter till June-end, the shortfall in the current financial year would be Rs 13,500 crore.

The revenue shortfall comes at a time when the AAP is looking to come good on its pre-poll promises of different freebies to voters.
The government has already announced 300 units of power free of cost. While the details of the beneficiaries are yet to be worked out as the scheme would be rolled out in July, financial experts believe that this will cost the state exchequer Rs 7,500 crore annually. This would be in addition to the state already spending over Rs 10,000 crore annually on free farm power and subsidies to other sectors.

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