Two days forward of presenting his first funds, finance minister Harpal Singh Cheema on Saturday introduced a white paper on the state of funds, saying that Punjab is in an financial morass and debt entice.

Also learn: Punjab Budget 2022-23: 5 key challenges facing FM Harpal Cheema

“The current date indicators of the state are probably the worst in the country, pushing it deeper into a debt trap,” Cheema stated.

According to the doc, the earlier governments, as an alternative of taking essential corrective measures, continued to let Punjab slip into fiscal profligacy, as is clear from unchecked improve in unproductive income expenditure, freebies and unmerited subsidies, resulting in a digital collapse. It says social sector investments are important for future development and non-realisation of its potential of tax and non-tax revenues.

Blaming the earlier authorities, the white paper stated the Congress authorities professed bringing fiscal prudency in administration of state funds, whereas discreetly selecting to not discharge the pending liabilities. “Sadly, they also followed their predecessors and while demitting office, handed over immediate and medium-term staggering liability of 24,351.29 crore that the new government has to discharge over the coming years, including claims by agencies such as Punjab State Power Corporation Limited (PSPCL),,” it learn.

According to the white paper, the sixth Punjab Pay Commission, which was in any other case due from January 1, 2016, was applied in July 2021 with fairly a delay and in haste with simply six months earlier than the meeting elections. “The nature and the way the 6th Punjab Pay Commission was implemented led to a sense of resentment, uncertainty, anguish and disappointment amongst the employees,” it stated.

It stated the earlier authorities couldn’t pay the arrears of revised pay with impact from January 1, 2016, to June 30, 2021, on account of implementation of the sixth Punjab Pay Commission and the pending legal responsibility on this account alone is predicted to be round 13,759 crore.

Additionally, the quantity of arrears of energy subsidy and curiosity thereon that has been indicated by PSPCL to be payable to it for agriculture, home and business is 7,117.86 crore.

On the tip of the products and providers tax (GST) compensation regime on June 30, the Aam Aadmi Party authorities, in its white paper, stated that it could be staring down an enormous gap left in its funds to the tune of 14,000 to 15,000 crore within the 2002-23 monetary 12 months itself. “This is a fall off the cliff scenario for the state,” it stated.