Finance Commission notifies panel to resolve Rs 31,000 crore food account

The 15th Finance Fee has notified the committee to inspect and unravel the meals account of Rs 31,000 crore which the Congress govt inherited from earlier SAD-BJP regime.

Fee chairman N Okay Singh gave approval to the issuance of the notification for the charter of the committee on Monday, an legit free up of Punjab govt stated.

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The Leader Minister Amarinder Singh whilst welcoming the transfer, expressed the hope that it will result in early solution of the problem associated with the legacy debt of Rs 30,584 crore, which used to be threatening to cascade into a significant monetary disaster for the state.

The committee, to be led through Member 15th Finance Fee and Member NITI Aayog Ramesh Chand, has been requested to post its record inside six weeks.

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The Committee has been mandated to appear into all sides of the meals account legacy debt of Punjab govt coming up out of amassed CCL (Money Credit score Restrict) hole on the subject of Meals Company of India/Division of Meals and Public Distribution. On present accumulation of CCL hole, the Committee has been requested to inspect the present problems associated with the CCL Hole in an effort to verify the foundation reasons for such hole. It might additionally suggest suitable measures to conquer the reasons known, with the intention to be sure the CCL hole does now not exist within the successive procurement seasons.

On January 30, the 15th Finance Fee, all through Punjab seek advice from, had introduced the formation of a committee to search out tactics to settle the meals account of Rs 31,000 crore.

All over the Fee’s fresh seek advice from to Punjab, the Leader Minister had delivered to its understand the seriousness of the prospective result of the legacy debt, prompted through amassed CCL hole in a span of greater than a decade associated with procurement of meals grains for the Central pool in Punjab.

The legacy debt used to be created through the erstwhile SAD-BJP govt which, within the final leg of its tenure, had persuaded the Centre to transform the CCL hole right into a blank long run mortgage for the state.

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This inflated the state’s fiscal deficit to 12.34 in keeping with cent of GSDP in 2016-17, and the debt servicing of this quantity would by myself quantity to Rs 3,240 crore in keeping with annum until September 2034. This may occasionally lead to a complete outflow of Rs 57,358 crore all through the reimbursement tenure of the mortgage.

The meals account arose as a result of the mismatch between money credit score availed for shopping wheat and paddy and foodgrain shares within the account books of the state procurement companies since 2004.

The Rs 31,000 crore incorporated Rs 12,000 crore major and Rs 19,000 crore pastime and Punjab has been paying Rs 3,240 crore pastime in keeping with annum on it which it has to pay for 20 years.

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