After cut on borrowing limit, Punjab writes to Centre seeking rollback of the decision
Chandigarh: The Punjab government has asked the Central government to roll back the cut on the borrowing limit in view of the current state financial crisis. For Punjab, which is caught in a debt trap, the central government’s big cut in the borrowing limit is nothing short of a setback.
The Punjab government is of the view that a reduction of Rs 18,000 crore in the borrowing limit could hit the state hard.
However, it is not hidden from anyone that the state’s economy is being supported by taking loans.
The Punjab government’s borrowing limit is Rs 39,000 crore annually, but the Union Finance Ministry had reduced this limit of Punjab by Rs 18,000 crore annually, after which the Punjab government has been able to borrow only Rs 21,000 crore annually.
The Centre had expressed apprehension that the Punjab government would stop contributing Rs 3,000 crore annually to the State Pension Fund Regulatory and Development Authority. The Punjab government has implemented the old pension scheme.