Punjab News: The state’s request for the release of the stalled Rural Development Fund (RDF) and the restoration of the cut imposed on the Market Development Fund (MDF) for the kharif marketing season (KMS) was made today by Chief Minister Bhagwant Mann to Governor Banwarilal Purohit.
This means Mann has put the ball in the Governor’s court by sending a letter to him today after the state received the provisional cost-sheet yesterday with the head of the RDF deleted and the MDF cut from 3 to 2%. Additionally, during the previous crop marketing season, the same cut was declared.
Punjab a major contributor of foodgrain to Central pool
CM in his letter has written, “You are already aware that Punjab is a major contributor of foodgrain to the Central pool. The procurement of foodgrain is made by the state government on behalf of the Centre and the foodgrain, procured under the Central pool, is handed over to Centre as per its requirement. As such, the state government is acting as an agent of the Government of India. As a principle, all procurement cost is to be reimbursed by the Department of Food and Public Distribution.”
Centre did not reimburse the RDF in the provisional cost sheet
Mann has also noted that the Centre did not reimburse the RDF in the provisional cost sheet for the kharif marketing season of 2020–21 due to a lack of clarification. Following the Center’s directions, the state government provided the required explanations and revised the Punjab Rural Development Act, 1987.
“Accordingly, the withheld RDF amount up to the rabi marketing season 2021-22 was released. But, since kharif season 2021-22, the Centre has stopped allowance of Rural Development Fees even though the state government made amendments to the Punjab Rural Development Act, 1987, agreeing to use the RDF only for building of rural infrastructure,” he has said.
If the reduction in both funds for this crop sale season is taken into account, the non-payment of the RDF has resulted in a loss to the state of Rs 5,637 crore.
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