CHANDIGARH: SAD MP Harsimrat Kaur Badal on Friday sought complete waiver of Punjab’s Rs 62, 00, 0 crore loan, or at least waiver of the interest on the loan to save the state from debt trap.
Participating in the debate on the Union Finance Bill, 2010, in the Lok Sabha, she demanded Punjab be declared a “special agriculture zone” with zero tax on agriculture inputs and linking of the MSP with the price index. She also sought a package of Rs 3,500 crore to rehabilitate the 150-year-old irrigation system, besides Rs 1,000 for the farmers who spent money on diesel for the last Kharif crop.
Demanding a tax-concession on the pattern of neighboring hill states, Harsimrat Kaur said Punjab being a highly taxed island was losing investors to other states.
She said the deterioration of Punjab’s economy was mainly due to the nine years of President’s rule in the state during the period of terrorism.
With high expenditure and no increase in taxes during the period, the states relied on special term loans, which had sent Punjab into spiraling debt as the loan kept multiplying. The debt had reached Rs62,000 crore, with an interest liability of Rs 5,600 crore.
Instead of rewarding Punjab for maintaining food security for the country, the state was not even considered for drought relief despite 65 per cent deficiency in rainfall.
Seeking drastic change in the formula for devolving funds to states, she said it was loaded in favour of underdeveloped states, because of which out of the 30 per cent of the total Central revenue that was shared with states, Punjab received only 1.3 per cent.
SOURCE-HT
