Cong's Bajwa writes to PM seeking financial stimulus package for states

Congress's Rajya Sabha MP Partap Singh Bajwa urged the Centre on Monday to release the Rs 4,386.37 crore due to Punjab as GST compensation and demanded a financial stimulus package for all states.

In a letter to Prime Minister Narendra Modi, he pointed out that the Centre owed the said amount to the Punjab government as GST compensation.

The MP from Punjab also mentioned that the state's finance ministry had revised its revenue receipts to Rs 66,000 crore for financial year 2020-21, which was lower by Rs 22,000 crore than what was projected earlier.

This loss in revenue was due to the ongoing nationwide lockdown, he pointed out.

"Apart from releasing these funds, the Centre must come up with a State Economic Stimulus Plan at the earliest. The Union government must act quickly to ensure that the states are in a position to emerge from the national lockdown with the capability to restart their economy.

"Without such a package, and also withholding the release of funds that are due to the state on time will have a massive economic impact on the state of Punjab, years after this COVID emergency," Bajwa wrote to Modi.

"I urge that this request be granted at the earliest to better equip the state in these times. This amount can aid the state's efforts in catering to a larger demand during COVID19," he said.

The Congress leader pointed out that Punjab Chief Minister Amarinder Singh had sought an amount of Rs 729 crore from the Centre for upgrading the healthcare infrastructure in the state and urged the prime minister to grant the same.

He also requested Modi to establish an Advanced Institute of Virology in Punjab, which would cost the Centre approximately Rs 400 crore and said the chief minister had already promised to provide land for the same.