Punjab govt orders 12 departments to immediately ‘Deposit Funds in State Treasury’
Kanwar Inder Singh/ royalpatiala.in News/ June 8,2025
Department of Finance, Punjab government has asked the administrative secretaries of 12 Punjab government departments to deposit funds in state treasury, immediately.
In a letter to additional chief secretary department of revenue, rehabilitation and disaster management, additional chief secretary good governance and information technology, principal secretaries of food , civil supplies and consumer affairs, animal husbandry, dairy development and fishers, water resources, water supply and sanitation. Further secretaries Punjab taxation, technical education and industrial training, agriculture and farmers welfare (Punjab state warehousing corporation), public works (buildings and roads), Punjab state agriculture marketing board (Punjab Mandi Board) and managing director Punjab infrastructure development board (PIDB) has been asked to deposit funds in the state treasury under the Government Public Account ‘Major Head 8342-Other Deposits -120-Miscellonous Deposits -09 The Punjab State Development Fund” immediately.
A meeting was held under the chairmanship of chief secretary, Punjab on June 5,2024 in which it was decided to call back funds lying with state govt department(orders copy is with www.royalpatiala.in News Portal)
An officer on the condition of anonymity said “to manage the borrowings, the state government might be thinking of using the funds lying with the departments, their agencies.”
Another officer on the condition of anonymity said “in a very strange move Punjab government has called back all funds from all departments as the state seems to be is facing a severe fund crunch.”
Punjab govt orders 12 departments to immediately ‘Deposit Funds in State Treasury’. As per reports, Punjab had sought approval for Rs 47,076.40 crore under the open market borrowing (OMB)* limit, but the Union Government imposed a cut of Rs 16,676 crore. The Department of Expenditure under the Union Ministry of Finance has communicated this to the Reserve Bank of India and informed the state government accordingly.
*Open Market Borrowing (OMB) means negotiated loans from NABARD, SIDBI, and transfers from the state provident fund and public accounts.
