Pre-budget meet | Punjab seeks ‘incentive package’ from Centre to bolster security and infrastructure

Punjab Chief Minister Bhagwant Mann.
| Photo Credit: ANI

The Punjab government has sought an “incentive package” from the Central government to bolster its infrastructure and security measures, given the unmatched challenges it faced due to its “hostile border” with Pakistan.

In a pre-budget meeting with Union Finance Minister Nirmala Sitharaman in Jaisalmer on Sunday (December 22, 2024), Punjab Finance Minister Harpal Singh Cheema said that the demand was raised for central assistance to strengthen Punjab’s police infrastructure and security efforts in border districts, with a grant of ₹1,000 crore. “Also, we have sought industrial incentives similar to those provided to Jammu & Kashmir and neighbouring Hill States, to support MSMEs in Punjab’s border and sub-mountainous regions,” he said in a statement.

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“We also raised the demand to restore NABARD’s Short-Term Seasonal Agricultural Operations [ST-SAO] limit to ₹3,041 crore, from the reduced limit of ₹1,100 crore for FY 2024-25. This restoration is vital to prevent farmers from turning to moneylenders,” he added.

“We also proposed financial support to address crop residue management in Punjab. Despite providing 1.45 lakh Crop Residue Management [CRM] machines since 2018, high operational costs remain a challenge. The Punjab government has proposed an incentive of ₹2,500 per acre, with ₹2,000 per acre from the government of India and ₹500 per acre from the State. The total cost of this initiative is estimated at ₹2,000 crore, with the government of India requested to provide ₹1,600 crore as budgetary support,” he said.

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Mr. Cheema requested a special budget allocation for paddy diversification. “Diversifying paddy cultivation across 10 lakh hectares could result in substantial savings of over ₹30,000 crore. The government has proposed allocating a portion of these savings towards a comprehensive diversification package,” he said.