Parliament Question: Special Financial Assistance Package to Punjab

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE LOK SABHA UNSTARRED QUESTION NO. 178 TO BE ANSWERED ON MONDAY, 20th JULY, 2026 ASHADHA 29, 1948 (SAKA) SPECIAL FINANCIAL ASSISTANCE PACKAGE TO PUNJAB

178. Dr. Dharamvira Gandhi

Will the Minister of Finance be pleased to state:

(a) whether the Government is considering any special financial assistance package or debt-relief mechanism for the State of Punjab; and

(b) if so, the details thereof? ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a) & (b) No. Currently, there is no such proposal under consideration to provide any special financial assistance package for the State of Punjab. However, the Ministry of Finance has designed and implemented schemes for Special Assistance to States for Capital Expenditure/Investment (SASCI) annually since 2020-21. Under these schemes, financial assistance in the form of 50-year interest free loan is provided to States. The financial assistance

provided to the State Government of Punjab under SASCI scheme so far is Rs. 8,379 crore.

The Scheme has been continued in the current financial year with an enhanced overall allocation of Rs. 2 lakh crore. Moreover, the Government of India is also providing substantial financial resources to State Governments including the Government of Punjab in the form of Finance Commission Recommended Grants, Central Sector Schemes, Centrally Sponsored Schemes and Additional central Assistance for Externally Aided Projects (EAPs).

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