Cash-crunched Punjab looks at crowdfunding for giving villages a facelift
Chief Minister Bhagwant Mann told the media that NRIs and others would be able to spend money on their native villages, adding that the government will write to the Centre to exempt income tax on these donations.
'If any NRI wants to donate money for the development of the villages, we will soon announce an account number. He can deposit the money in the account. If any NRI wants the money only to be spent in his native village, then we will do that,' said Mann.
The development comes at a time when Punjab has been facing a funds crunch, with freebies bleeding the state exchequer dry. The government has not been able to spend much on the development of the state either.
Sources said that while the fund was being set up, keeping in mind those NRIs who had made it big abroad, even those in India could donate funds for setting up projects in the villages. 'We always get requests from such persons, who want to pay back to their motherland, and help provide infrastructure like schools, stadiums in their native villages. However, there was no way to do so. They will be invited to deposit the money in the state finance department's account under the head of the fund,' a functionary of the government told The Indian Express.
He added, 'For instance, an NRI got in touch with us that he wanted to spend Rs 50 lakh on his native village for cleaning the pond. But we could not help him. There was no way. Now, we have decided to set up the fund. The money will be deposited here.'
'Earlier, some central rules did not allow such funding to the government. Now, there has been an amendment. The money thus donated and deposited in the government account will not be considered parked money. We have taken legal opinion. Decks have been cleared for setting up this fund,' he further said.
After taking over the reins of the state, the Aam Aadmi Party (AAP) government in Punjab had given a similar call for crowdfunding. However, the Centre had not permitted the state government to accept such donations. 'At that time, it had come to a halt. Now, we will make this happen. All the money collected would be spent on the villages,' the government functionary said.
Before the AAP government, former Congress finance minister Manpreet Singh Badal had also chalked out a plan to fill the state's coffers by crowdfunding. He had worked out a plan at that time and had issued an appeal to the NRIs to help the state. However, the scheme had not yielded anything.
'We are now prepared. We will manage. There are several villages in the state in which NRIs have already contributed. For instance, in Sarseeni village near Lalru, an NRI has given a total facelift to his native village. The village has a lake, a good school, and a stadium. It is a delight to visit the village. With our Rangla Punjab Fund, many villages will get a facelift,' the government functionary added.
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