The Central Government on Monday clarified that there is currently no proposal under consideration to provide any special financial assistance package or debt-relief mechanism for the State of Punjab.
This information was given by the Minister of State in the Ministry of Finance, Shri Pankaj Chaudhary, in a written reply to an unstarred question raised by Member of Parliament Dr. Dharamvira Gandhi in the Lok Sabha.
Responding to queries on whether the Centre is considering a special financial assistance package for Punjab, the Minister stated, “No. Currently, there is no such proposal under consideration to provide any special financial assistance package for the State of Punjab.”
However, Chaudhary highlighted that the Ministry of Finance has been supporting state governments through the ‘Special Assistance to States for Capital Expenditure/Investment (SASCI)’ scheme, which has been implemented annually since the financial year 2020-21. Under this initiative, the Centre provides financial assistance to states in the form of a 50-year interest-free loan.
“The financial assistance provided to the State Government of Punjab under the SASCI scheme so far is Rs. 8,379 crore,” the Minister informed the House. He added that the scheme has been continued in the current financial year with an enhanced overall national allocation of Rs. 2 lakh crore.
The Minister further noted that besides the SASCI scheme, the Government of India continues to provide substantial financial resources to state governments, including Punjab, through Finance Commission Recommended Grants, Central Sector Schemes, Centrally Sponsored Schemes, and Additional Central Assistance for Externally Aided Projects (EAPs).