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Home Chandigarh

Release all funds of state worth Rs 60,000 crore stuck with GOI: Bhagwant Mann urges PM

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August 31, 2025
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Chandigarh, August 31-

Punjab Chief Minister Bhagwant Singh Mann on Sunday sought immediate intervention of Prime Minister Narendra Modi to release all funds of state worth Rs 60,000 crore stuck with Government of India.

In a letter to the Prime Minister, Bhagwant Singh Mann apprised him that Punjab is currently grappling with one of the

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worst flood disasters in decades, impacting about 1000 villages and affecting lakhs of people. The Chief Minister said that heavy monsoon rains, coupled with the release of waters from dams, have caused extensive flooding in seven districts, namely Gurdaspur, Kapurthala, Amritsar, Pathankot, Ferozepur, Fazilka and Hoshiarpur. He said that  the situation is still evolving as there is a grave concern that conditions may further deteriorate in the coming days.

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The Chief Minister said that at present, about three lakh acres of farmland, primarily paddy fields,

remain submerged under floodwater, leading to devastating crop losses just weeks before harvest. In addition, he said that there has been a widespread loss of livestock, which is severely impacting rural households whose

livelihoods are heavily dependent on dairy and animal husbandry. Bhagwant Singh Mann also apprised the Prime Minister that permanent loss of revenue on account of implementation of

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GST and transition from VAT Regime is Rs 49,727 Crore for which no compensation has been provided by GoI.

Likewise, the Chief Minister said that reduction of RDF and MDF in last few years has ballooned to over Rs 8,000 Crore adding that recently Government of India has also scrapped pMcsy projects in Punjab amounting to 828 Crore. Bhagwant Singh Mann said that this can adversely impacted state’s rural connectivity in long-run adding that Punjab is facing tough time due to worst flood conditions. He requested the Prime Minister to release all funds of Punjab stuck with Government of India, which is to the tune of Rs. 60,000 crores.

The Chief Minister said that While substantial funds are available in the State Disaster Response

Fund(SDRF), the existing norms prescribed under the guidelines of the Ministry of Home Affairs remain grossly inadequate to compensate farmers, livestock owners, and vulnerable communities for the scale of their losses. He said that the notified norms are totally unrealistic as compared to actual losses been suffered by the farmers. Citing an example, Bhagwant Singh Mann said that input subsidy where crop loss is 33% and above has been fixed as Rs. 17,000 per hectare, this translate into Rs. 6,800/- per acre.

The Chief minister said that Paying such a petty amount would be a cruel joke with the farmers due to which the State Government contributes additional Rs. 8,200/- per acre and pays Rs. 15,000/- per acre to the farmers. Bhagwant Singh Mann said that since the crops are almost at the harvesting stage, so at least Rs. 50,000/- per acre should be paid to the farmers. Seeking revision in the norms of compensation of SDRF, he said that needless to say that State Government shall continue to contribute 25% as per scheme of SDRF.

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