Cash-strapped Punjab to borrow Rs 22,000 cr, Rs 6,500 cr more than decided in Budget

IN THE MIDST OF THE COVID-19 pandemic, Punjab will borrow around Rs 22 billion in the current fiscal year, Rs 6.5 billion more than budgeted.

On Wednesday, the cabinet paved the way for the state to be eligible for an additional 2 percent loan from the GSDP in 2020-21. By adhering to the Center’s preconditions on ‘a nation’s ration card’, ease of doing business, local agency reforms, by providing direct benefit transfer of energy subsidy in at least one district, the government has decided to increase its debt limit to 2 percent

The power subsidy DBT is a contentious issue in Punjab and the state government had previously stated that it would not agree with the Center’s precondition. Later, he decided that he was already paying DBT to various farmers in some districts.

The Cabinet also paved the way to further boost the ease of doing business by enabling the ease of automatic license renewal and record-keeping in electronic/digital format for industries.

The state cabinet, which met via video conference on Wednesday, approved the necessary amendments to the Factories Act of 1948 and the Punjab Factory Rules of 1952.

Under the new rule, a license will be renewed for one year digitally through automation mode if there are no changes to the license details of the previously granted/renewed license and other conditions required by the government.

A spokesman for the prime minister’s office said the move was in line with directives from the Union finance ministry, for eligibility to obtain additional 2 percent loans from the GSDP in 2020-21, subject to the implementation of reforms specific statewide on January 31 December 2021.

The automatic renewal of certificates/licenses required by commercial entities is one of the reforms.

Therefore, it was mandatory to change the rules to provide automatic approvals to take advantage of the additional 2 percent loan, the spokesperson said.

At present, there is no automatic license renewal provision under the Punjab Factory Rules, 1952, so a new rule will be inserted in the Punjab Factory Rules, 1952, to provide such ease for companies. industries in the state. Consequently, the Cabinet approved the insertion of the new Rule 10-A, related to “Automatic License Renewal” under the Factories Act, 1948 / Punjab Factory Rules, 1952.

Likewise, acceding to the demand of the industries as a result of the technological update on various platforms, the new Rule 114 in the Punjab Factory Rules, 1952, regarding the maintenance of different records prescribed under the Factories Law, 1948 and the Rules from Punjab Factory, 1952 in electronic/digital format, has also been inserted.

Both boys, girls from public schools to get smartphones

On Wednesday, the cabinet paved the way for the distribution, in November, of 1,73,823 smartphones to boys and girls studying in government schools, preparing to take their class XII exams this year through online education amid the pandemic.

The distribution of the first batch of 50,000 phones, which has already been received by the state government, will begin soon. The phones will be equipped with various smart functions such as touch screens, cameras, and preloaded government applications such as the “e-Sewa App” with electronic content related to Class XI-XII, as approved by the school education department.

The second batch will be purchased soon and distribution will be completed in November, an official spokesperson said. The smartphone was a promise prior to the government poll that has so far not been kept.

The Cabinet noted that four months of the 2020-21 academic year had already elapsed without regular classes on campus, and while private schools were conducting classes online, students in government schools faced a competitive disadvantage, especially those studying in Class XII.

Although it had initially announced that the first batch of smartphones, received a few days ago, would be delivered to the girls, Amarinder said Wednesday that both boys and girls in government Class XII schools, who do not have smartphones to access in line. Classes that have currently replaced physical education will receive the same.

With this, the state government implemented the ‘The Punjab Smart Connect’ scheme, which it had announced in its budget for the 2018-19 fiscal year. The scheme aimed to provide digital access to young people, as well as information on education, career opportunities, access to skills development and employment opportunities, in addition to basic citizen-centered services through government applications, etc.

At a meeting in September 2019, the Cabinet decided to distribute mobile phones to approximately 1.6 lakh of students who do not own a smartphone and who study in classes XI and XII in government schools during the 2019-20 fiscal year. The contract was signed with M / s Lava International Ltd. after an open bidding process. However, during the smartphone procurement and delivery process, the country was affected by the pandemic and the delivery and distribution of smartphones could not take place in the 2019-20 academic year.

Health insurance

Extending the Ayushman Bharat – Sarbat Sehat Bima Yojana (AB-SSBY) for one year, the Punjab Cabinet decided on Wednesday to incorporate state government employees/pensioners and employees from organized non-governmental sectors, including the private sector/boards and corporations The fold of health insurance coverage.

The Department of Health and Family Welfare has been asked to prepare a detailed proposal for the inclusion of the new categories within the scope of the plan, which provides insurance coverage of Rs 5 lakh per family per year for 42.27 lakh of the poor and other families. The scheme will now run from August 20, 2020, to August 19, 2021.

A government statement said that of the 42.27 lakh of families currently under the plan’s coverage, 14.86 lakh of poor families have been identified according to the 2011 ‘Socio-Economic Caste Census’ (SECC). Of the rest, 16, 30 lakh of families are families with a smart ration card. and 11.10 lakh J-form holders, sugarcane producers with weigh-in vouchers, construction workers, families of accredited journalists and families of small merchants.

The Cabinet has approved the extension of Ayushman Bharat – Sarbat Sehat Bima Yojana for the next policy plan period, i.e. from August 20, 2020, to August 19, 2021, at the offered premium rate of Rs 1,100 per family per year, by IFFCO-Tokio General Insurance Company Ltd., selected through the bidding process. The total estimated cost of the premium, i.e. Rs. Rs 464.98 million to Rs 1,100 per family per year, to be shared between the Center, the State Treasury and participating departments (Punjab Mandi Board, Construction Workers Welfare Board, Special Tax Department and Tax, PUNMEDIA), is Rs 98.07 million, Rs 244.71 crore and Rs 122.18 crore respectively.

Punjab incurs Rs 501.07 crore in COVID fight

The cabinet also approved the expenditure of Rs 501.07 million so far incurred by the state government in the fight against the pandemic.

A government statement said that of Rs 501.07 crore, Rs 76.07 crore was spent by the health sector procurement and response committee for the purchase of various equipment and relief, while Rs 425 crore was spent by various departments of the State Fund. Disaster Response (SDRF) and budgetary resources for the management and control of the pandemic.

The spokesperson said Rs. 131.99 crore spent by the department of health and family welfare, Rs 36.16 crore for medical education and research, Rs 3.77 crore for transport, Rs 10.12 crore for information and public relations, Rs. Rs 10.11 million for rural development, Rs 14.04 crore for social security, women and child development, Rs 45.05 crore for PWD, Rs 0.11 crore for prisons, Rs 78.2 crore for civilian food and supplies, Rs 12.65 crore for deputy commissioners for development, Operation and maintenance of COVID care centers, Rs 4.86 crore for water and sanitation supply, Rs 3.66 million for household, Rp 8.79 million for local government and Rs 65.22 million by deputy commissioners.

The state had allocated funds totaling Rs 470 crore from SDRF and budget sources for the fight against Covid, of which 90.42 percent has already been spent. The allocation was for the management and control of the pandemic; increased health infrastructure, including the acquisition of state-of-the-art medical equipment to improve testing; provision of protective equipment for frontline workers, for better case management, establishment, and designation of health care facilities, ensuring relief to those affected by the closure and who lost their livelihoods, and ensuring the return of the migrants stranded home.

Apart from this, the Health Sector Procurement and Response Committee spent a sum of Rs 76.07 crore on the purchase of equipment for the department of health and family welfare, the departments of medical education and police, including PPE equipment, masks N95, triple-layer masks, and VTM Kits.

Rs 1,046 crore for local government

To increase civic infrastructure and improve the quality of public life in 167 Urban Local Bodies (ULB), the Cabinet approved the delivery of 1,046 million rupees of funds to the local government department under Phase II of the Improvement Program of the Punjab Urban Environment (PUEIP).

The Punjab government had started PUEIP in the fiscal year 2019-20 to improve infrastructure related to roads, drains, public lighting, solid waste management, and park construction and maintenance, etc., to ensure a better quality of life for residents. Resident at 167 ULB, and had sanctioned Rs 298.75 crore for this program.

4-year strategic action plans.

Cabinet approved the 2019-23 Four-Year Strategic Action Plan (4SAP) and the 2019-20 Annual Action Plan for six departments, bringing to 24 the total number of state departments that have such plans.

The departments for which the plans have been approved are social justice and minority empowerment, governance reforms and public grievances, power, higher education and languages, income, rehabilitation, and disaster management, information technology, and key performance parameters (KPP).