The World Bank has granted the Punjab government a loan of $150 million (roughly Rs 1,200 crore) to assist the state better manage its financial resources and increase access to public services.
In a statement, the World Bank said it will assist Punjab’s efforts to develop the institutional skills of key government ministries, manage budgetary risks, and make informed policy decisions to support long-term growth.
Punjab now owes Rs 2.63 lakh crore. The state, which received a substantial portion of its profits as GST compensation from the Centre, is expected to lose roughly Rs 16,000 crore per year after the Centre stopped its GST reimbursement programme for states in June of this year.
The state is currently struggling to stay solvent, with the new government spending on freebies to meet its pre-election pledges.
According to authorities, the World Bank money that Punjab will receive may only be utilised for the purpose and departments for which it was intended.
“Punjab’s growth has lagged below its potential.” “A combination of budgetary issues and institutional capacity restrictions means that precious resources are stretched thin across development goals,” the World Bank stated in a statement.
The new projects will help the state achieve its development goals by strengthening the planning, budgeting, and monitoring functions and leveraging digital technology, as well as increasing accountability in public procurement systems by assisting with the state-wide implementation of new legal and policy reforms.
The World Bank’s country director in India, Auguste Tano Kouame, was quoted in the statement as saying, “The World Bank is pleased to be a partner of the state of Punjab in the state’s effort to deliver timely, cost-effective, and high-quality public services, which is critical for inclusive development.”
“This new project will complement the state’s new data strategy, which aims to bring together numerous social protection measures and limit possible leakages while providing important services,” Kouame noted.
The project will implement a performance-based awards system to incentivise municipal corporations to enhance service delivery, as well as showcase 24-hour water provision in certain regions of Amritsar and Ludhiana. It will also enhance water distribution systems and prevent water leaks.
The success of these pilots is projected to provide a considerable opportunity for statewide scale-up of better service delivery.
Punjab Finance Minister Harpal Cheema stated on Saturday that the sum has already been budgeted for. He went on to say that the World Bank provides this money for changes in several areas. He further stated that this loan is available to all states and that the funds are given progressively when various departments demonstrate utilisation.
Disclaimer -We have collected this information from our direct sources, various trustworthy sources on the internet and the facts have been checked manually and verified by our in-house team.