Punjab to lose Rs 5000 crore annually under GST regime

Chandigarh : Punjab would suffer a revenue loss of about Rs 5000 crore annually with the implementation of Goods and Services Tax. Speaking at a meet-the-press programme at the Chandigarh press club here today, Punjab finance minister Parminder Singh Dhindsa claimed the state was in good financial health. He asserted the fiscal indicators were showing improvement as compared to other states. It is a different matter that some sections of employees have to wait for their salaries.He said the rate of GDP growth during Congress was 1.27 per cent as compared to the present 3.90 per cent. Similarly, the fiscal deficit in 2002 was 45 per cent of the GDP that had now come down to 31 per cent.Dhindsa said the government employees in Punjab were the highest paid and the wage bill presently was of the order of Rs 28000 crore.Elaborating on GST, the finance minister said the revenue loss suffered by Punjab would be compensated by the centre for five years. He was in favour of the GST regime which would be a big step for the country. It is the manufacturing sector that would benefit more under this system. He announced that the employees would be getting additional dearness allowance instalment from January salary and the same has been notified. He said the 7th pay commission would be constituted shortly.He admitted Punjab did not get much from the 14th Finance Commission as the logic extended was that the state was subsidising the farm sector by way of free power. He said it was strange that while the industry could get subsidy, the same was being denied by the finance commission to the farm sector. He said the state government had taken up with the centre several proposals to rescue the farmers.
Welfare Fund for journalists:
He announced that Chief Minister Parkash Singh Badal has given green signal for starting welfare fund for journalists with a corpus of Rs 10 lakh while Rs 15 lakh would be provided in the next budget.