ADB to provide $200 mn for Punjab's fiscal consolidation programme

GThe gvernment Friday entered into an agreement with Asian Development Bank (ADB) for a loan of $200 million to facilitate Punjab's comprehensive fiscal consolidation programme.

According to the Finance Ministry, the agreement with ADB will generate fiscal savings and make better use of scarce budgetary resources to help with socio-economic development of the state.

The ministry said that the program will provide necessary support to the state government to improve fiscal management, rationalise spending, and introduce new revenue measures.

"Punjab development finance program will improve targeting of public expenditure in the areas of health, education, power, and public works," said Tarun Bajaj, joint secretary, Department of Economic Affairs, Finance Ministry.

"Moreover, it addresses environmental issues that are undermining sustainability considerations through direct feedback loops from subsidy to water table depletion."