CHANDIGARH: A Memorandum of demands was handed over by a delegation on behalf of PPCC Chief Amarinder Singh Raja Warring and CLP Leader Partap Singh Bajwa representing the Congress Party led by former Cabinet Minister Punjab & MP Vijay Inder Singla along with Kuldip Singh Vaid, Ex-MLA and Hardip Singh Kingra Spokesperson PPCC who were invited by the 16th Finance Commission to know the views of the Principle Opposition party in Punjab Vidhan Sabha.
To ensure all-encompassing discussion on all crucial issues facing the state, the Punjab Pradesh Congress Committee (PPCC) on Monday submitted the detailed charter of demands to the visiting 16th Finance Commission.
The delegation was tasked by PPCC President Amarinder Singh Raja Warring to present holistic view on all issues concerning the state of Punjab with deep focus on long-term financial stability of the state exchequer.
At the outset Sh. Vijay Inder Singla on behalf of the delegation and Punjab Pradesh Congress Committee (PPCC) welcomed 16th FC Chairman, Members and delegates to the Land of Gurus, Sufis and Saints as well as the Grainery of India which Punjab is.
"The successive Finance Commissions from 2000-01 to 2020-21 have raised the collective share of all the states in Central Tax Revenues from 29.5% to 42%. We request the 16th FC to raise this collective share of States to 50% as there are many other new sources of revenue come to the central government with GST in operation as many sources of revenue for the states have got subsumed in the GST regime, " Singla pointed out.
FC Cesses, Surcharge and cost of collection is excluded from the divisible pool of the center earnings. Over the years central government has increased its collection through various cesses there by depriving states of their legitimate share in the revenue. Since the cesses are in position for the last 5 years, we request 16th FC to make these cesses shareable with states as a matter of principle, the delegation added.
The delegation has also requested the Commission to add non-tax revenue means like Royalty Fee and Spectrum Charges from various service providers collected by Central Government to the divisible pool as there is no reason not to do this.
"Punjab presently is facing a major resource crunch and under the circumstances is unable to make state share available in case of many Centrally Sponsored Schemes (CSS). Due to this resource crunch on one hand and rising aspirations of our population, on the other hand, it has become very difficult to spare funds for capital projects which can bring long term growth and generate employment, the delegation pointed out.
Punjab is the most adversely impacted state by the GST regime due to withdrawal of Purchase Tax levied on Agriculture Goods. State has lost about Rs. 3000 Cr. Of Purchase Tax on Food Grain procurement which was subsumed into GST along with Rs. 568 of CST since 2017.
The delegation also presented a demand for additional grant of Rs. 10, 000 Cr. for all these agriculture and allied activities.
"As we all know Punjab is an agricultural state and is the major contributor of Rice and wheat to the central pool (Area of Punjab 1.53% of total Geographical area of the country but contribution of wheat is 38% & rice 29% to central pool). For this there is a heavy dependency on ground water thus depleting the ground water resources. To save ground water we need to promote Crop Diversifications, Promote Horticulture Crops, increase food processing capacity and carry out in situ Research & Development in all these fields, " the delegation added.