Context:

• The state government of Punjab has made a significant decision to reduce discretionary grants allocated to key governmental figures, including the Chief Minister and cabinet ministers. Despite facing opposition, this move reflects a deliberate effort to streamline resource allocation and promote more efficient fund utilization for development initiatives in the state.

Key Points:

• Despite facing opposition from a few of its members, the state government of Punjab has proceeded with its decision to cut the discretionary grants allocated to the Chief Minister, cabinet ministers, and the Speaker.
• The discretionary grant allotted to Chief Minister of Punjab will see a reduction from Rs 50 crore to Rs 37 crore. Similarly, as per the state government’s decision, the discretionary grants for cabinet ministers will be decreased from Rs 1.5 crore to Rs 1 crore each.
• It is noteworthy here that the Discretionary grants constitute funds provided to the Chief Minister and ministers, earmarked for yearly development initiatives within the state.

• Notably, a few months ago, the Chief Minister's discretionary grant was initially set at Rs 75 crore but was subsequently reduced to Rs 50 crore by the Punjab Vidhan Sabha. Likewise, the ministers' discretionary grants, initially at Rs 3 crore each, were later slashed to Rs 1.5 crore each by the Punjab Vidhan Sabha.

• Some ministers in this regard, voiced their opposition to the reduction, contending that these funds were essential for prompt execution of public projects.

• The state government however defended the reduction by pointing out that many ministers failed to submit utilization certificates for their grants, suggesting an underutilization of the funds. Additionally, it was observed that some ministers were unable to utilize even nominal amounts of their discretionary funds, resulting in losses of up to Rs 50 lakh.