New Delhi, 30 September (IANS) Punjab Finance Minister Herl Cheema on Tuesday called the 16th Finance Commission Chairman Arvind Panagariya to search for a long -term rehabilitation package, cited with devastating floods with disastrous floods, causing an estimated loss of Rs 20,000 crore, especially in the border areas.
The chema exposed the stress placed on the state’s finance due to its unique position as a frontal border state, natural disasters and the structural disadvantage arising out of change in goods and service tax (GST) regime.
He started the discussion by addressing the immediate need to improve the State Disaster Response Fund (SDRF) norms. He said that the existing SDRF criteria proved to be very restrictive and rigid, which severely disrupted the state’s capacity to provide timely and adequate relief.
“It is necessary that these guidelines be widely reviewed to include flexibility and provisions for state-specific disasters,” he emphasized.
In addition, the Finance Minister insisted that the SDRF should be converted into a non-bid-bear reserve fund, which is similar to the National Disaster Response Fund (NDRF), given that the state fund currently holds a huge interest of Rs 7,623 crore out of a total of Rs 12,268 crore.
The Chairman of the Finance Commission accepted the concern raised by Punjab and assured that this would be discussed with the members of the Commission in a meeting.
Repeating the demands laid by the state in the last meeting with the 16th Finance Commission, the Finance Minister also gave an argument for financial assistance dedicated to a hostile border shared states.
He said that the border districts of the state suffered extensive economic losses through frequent disruptions for increased tension with Pakistan, especially in view of Operation Sindhr, for the movement of goods.
“Punjab continues to face unique security challenges, including drone phenomena, cross-border smuggling, and narco-attentiveism, demanding continuous, heavy investment in security and law enforcement,” Cheema was said.
He informed the chairman that the State Border Security Force (BSF) was investing heavily in infrastructure and police modernization to create an effective second line of defense. He requested a dedicated border area package to strengthen police forces and law enforcement infrastructure, for which the state has requested the Commission to request Rs 2,982 crore in its memorandum. He said that this support is important to ensure both national security and regional stability.
Finance Minister Cheema presented the state’s latest fiscal indicators, with a revenue deficit of Rs 23,957 crore and a fiscal deficit of Rs 34,201 crore in 2025-26, a fiscal deficit, loan-to-GSDP ratio of 44.50 percent.
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