New Delhi, Sep 30 (NationPress) Punjab's Finance Minister Harpal Cheema on Tuesday approached 16th Finance Commission Chairman Arvind Panagariya to advocate for a long-term rehabilitation package, referencing the catastrophic floods that inflicted an estimated damage of Rs 20,000 crore, especially in border regions.

Cheema pointed out the financial burden faced by the state due to its unique position as a frontline border state, compounded by natural disasters and structural challenges following the implementation of the Goods and Services Tax (GST).

He commenced the dialogue by highlighting the urgent necessity to reform the State Disaster Response Fund (SDRF) regulations. He stressed that the current SDRF guidelines are overly stringent, severely limiting the state's capacity to deliver prompt and sufficient relief.

"A comprehensive review of these guidelines is essential to introduce flexibility and provisions for disasters unique to the state," he asserted.

Moreover, the Finance Minister emphasized that the SDRF should be transformed into a non-interest-bearing reserve fund, similar to the National Disaster Response Fund (NDRF), noting that the state's fund currently has a staggering interest accumulation of Rs 7,623 crore out of a total balance of Rs 12,268 crore.

The Finance Commission Chairman recognized Punjab's concerns and assured that they would be raised with Commission members in an upcoming meeting.

Reiterating the requests made during the previous engagement with the 16th Finance Commission, the Finance Minister also advocated for targeted financial support for states that share a hostile border.

He remarked that the increasing tensions with Pakistan, especially following Operation Sindhoor, have led to significant economic setbacks for the state's border districts due to frequent disruptions to daily life, industrial operations, and goods transportation.

"Punjab is continually confronted with unique security challenges, such as drone incursions, cross-border smuggling, and narco-terrorism, which necessitate ongoing and substantial investment in security and law enforcement," Cheema was quoted as saying.

He informed the Chairman that the state is investing heavily in infrastructure and police modernization to establish a robust second line of defense supporting the Border Security Force (BSF). He requested a dedicated package for border areas to bolster police and law enforcement infrastructure, for which the state has sought Rs 2,982 crore in its memorandum to the commission. This support is vital for maintaining both national security and regional stability.

Finance Minister Cheema presented the state’s current fiscal indicators, reporting a revenue deficit of Rs 23,957 crore and a fiscal deficit of Rs 34,201 crore for the year 2025-26, with a debt-to-GSDP ratio of 44.50 percent.