H’ble Governor, Punjab

 To,
         Sh. Shiv Raj Patil Ji
         H’ble Governor, Punjab
                                            MEMORUNDUM


Congress Legislative Party would like to bring to Your kind notice the deteriorating fiscal condition of Punjab, besides various irregularities committed by the State Finance Minister in the latest budget passed in the state assembly.

The Punjab Revenue Fiscal Responsibility and Budget Management Bill, 2011 mandates that the revenue deficit in the year 2012-13 should be below 1.2 percent  of Gross State Domestic Product. But in gross violation of norms, the revenue deficit has reached  1.61 percent of the GSDP. The Akali BJP government has been breaching the law with impunity year after year. Last year also these limits relating to revnue as well as fiscal deficits were violated, which had resulted in a loss in form of State not being able to avail grant from the central Government to the tune of Rs. 500 crore. The finance Minister had himself admitted this in his Budget speech. It’s rueful that the State Government seems to be the least concerned about maintaining fiscal discipline to the detrement of the State.

In a serious indictment the CAG has accussed the Punjab government of unconstitutionally diverting Rs.3,194 crores to various state bodies. This is a clear violation of the constitutional norms. As per the law, this money collected as taxes between 2007-2012 should have gone to the consolidated fund of the State. In doing so the State Govt. has kept these funds out of the purview of Vidhan Sabha.


CAG has also raised fingers for the violation of rules for withdrawal of Rs.3064.21 crore in the last two days of 2011-12 year, in the name of Development works and other purposes while manifold embezzlement had been reported in its expenditure.

Even though revenue collection had increased to Rs.42666 Crore in the 2013-2014 as       compared to Rs.22156.58 Crore in 2009-10 while Central grant had also increased to Rs.6574 crore in the current fiscal year from Rs.2320.10 Crore in 2009-10 but ironically, hardly any development is discernible.


Its’ sorry state of affairs on the part of SAD-BJP government that in the last six years Punjab has accumulated loans of Rs.38019 crore. In the same period the  Public sector has accumulated a debt of Rs.69270 Crore which has been guaranteed by the state government. By the end of 2013-14, aggregate debt burden of Punjab will be Rs.1.90 Lakh Crore.


The Congress Legislators of Punjab  request timely and meaningful intervention to prevent the occurrence of state of Financial Emergency in Punjab. We  request to you use your                 authority to inquire into burgeoning debt and the cause of its perpetual ballooning, and            direct the State Govt. to observe fiscal propriety.

(Sunil Jakhar)