Citing the huge revenue losses suffered by Punjab due to the continuing Covid- 19 pandemic and the coronavirus lockdowns, the Punjab Council of Ministers on Tuesday sought adequate compensation from the Centre to support the state in these difficult times.

During a review of the fiscal situation amid the pandemic, the Punjab Council of Ministers under the chairmanship of Chief Minister Amarinder Singh noted that the situation was grave, considering the decline in revenue collections over the first quarter of 2020-21 fiscal year and the estimated losses for the full current financial year.

A presentation made to the Amarinder ministry by the state finance department showed that the state’s own tax revenue collections for the April-June 2020 period had gone down by a whopping 51 per cent, with the Goods and Services Tax (GST) losses alone amounting to the tune of 61 per cent as against the budgetary estimates for this period.

The GST and Value Added Tax (VAT) revenue collections for this quarter together went down by 54 per cent.
The decline in total revenue receipts for April-June quarter was 21 per cent.

The Punjab Council of Ministers further noted with concern that in terms of nontax revenue collections of the state, the shortfall against budgetary estimates for Q1 of FY 2020-21 was a massive 68 per cent.

The figures are as per the initial estimates as accounts are yet to be received from the Accountant General of Punjab.

The situation was extremely grim, the Council observed, calling for fiscal support from the Centre to compensate for these huge losses.

The revenue loss would badly impact not just the battle against Covid, which was now peaking in the state, but also obstruct the implementation of key schemes and programmes of the state government in addition to affecting routine expenses, including payment of salaries, pointed out the Council of Ministers. The Centre needs to come out with urgent financial help for the state government to tide Punjab over the current crisis, said the Council.

Meanwhile, as Punjab gears up to further strengthen its fight against the worsening Covid crisis, the state Cabinet on Tuesday approved filling up of 428 regular vacancies of medical officers (specialists) on urgent basis. It also gave ex-post facto approval to 107 posts already filled up for six specialities.