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:: Press Releases ::
Saturday, September 7, 2013

1. Dr. Y.V. Reddy, Chairman, Prof. Abhijit Sen, Ms. Sushama Nath, Dr. M. Govinda Rao and Dr. Sudipto Mundle, Members of the Fourteenth Finance Commission, and Sh. A.N. Jha, Secretary visited the State of Punjab from September, 06 & 07, 2013 to hold consultations with the State Government and key stake holders.

2. The Commission met with the Hon’ble Chief Minister, his Cabinet Colleagues and senior officers of the State Government, for discussions.

3. The Chief Minister Punjab invited the attention of the Commission towards the Agriculture and Allied Sector, Health & Family Welfare and Grants for Border, Kandi areas, need for debt relief and on the need to tackle the water logging problem being faced by the State. A comprehensive picture of economic and fiscal profile of the State as well as observation regarding vertical and horizontal criteria and the proposal for grants for meeting post devolution revenue deficit was presented before the Commission. Apart from this the specific needs were projected regarding debt sustainability, sharing of subsidies, financing of relief expenditure. The Hon’ble Chief Minister raised his concern regarding decline in the share of State in Central Taxes and urged the Commission to ensure vertical fiscal balance between the Union and the State Government and horizontal balance amongst various States. He urged the commission to set realistic fiscal consolidation targets for the State. He added that the State required special dispensation for diversification of agriculture, debt relief grant to take care of the outstanding loans and suitable compensation on account of power subsidy.

4. The Hon’ble Finance Minister presented and overview of the finances of the State and also highlighted that the State needed debt relief as the historic burden of debt was high and also expressed concern on the adverse impact of tax concessions given for the neighboring States.

5. The State Government submitted their Memorandum and made a detailed presentation on the finances of the State Government, its projection for the award period and gave their views on some of the Terms of Reference of the Commission. The Commission also interacted with representatives of political parties, Panchayati Raj Institutions, Urban local bodies and Trade and Industry Associations.

6. The Commission places on record its appreciation to the Chief Minister and State Government for the cooperation and support extended to the Commission and assures that the issues raised will receive due attention in the deliberation of the Commission. The Commission also looks forward to continuing interaction with the State Government.

7. The Commission will finalize its recommendations by October 2014 after completing its discussions with all the State Governments, the Government of India and relevant stake holders.

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