CHANDIGARH, Aug. 22 — Punjab Finance Minister Harpal Singh Cheema on Thursday called on the Union Government to release ₹50,000 crore in pending Goods and Services Tax (GST) compensation, saying the state continues to face massive financial stress.
Cheema, who attended a two-day meeting of the GST Ministerial Group on health, insurance, rate rationalisation and compensation cess, said Punjab has suffered losses of ₹1,11,045 crore since GST was implemented in 2017.
“The Centre has so far released only ₹60,000 crore to Punjab, while ₹50,000 crore is still pending,” Cheema said. He reminded that the Union Government had promised a five-year compensation package to states to offset losses from the transition to GST.
The minister further alleged that the Centre has also withheld other funds due to Punjab, including ₹8,000 crore for rural development and over ₹1,000 crore under the Prime Minister’s Road Scheme.
Cheema maintained that an early release of compensation is critical for the state’s financial health. “Punjab’s economy has borne a disproportionate burden from GST, and we need timely support to maintain fiscal stability,” he noted.
The issue of GST compensation has been a recurring point of contention between states and the Centre, with several states urging the Union Government to honor its commitments.
