Chandigarh, August 15: Punjab Finance Minister Harpal Singh Cheema has addressed claims regarding the state’s Rural Development Fund (RDF), stating that the administration has consistently pursued the release of ₹9,821 crore in pending dues at multiple official levels. Addressing a press conference in Chandigarh, the Finance Minister responded to recent remarks made by Union Cabinet Minister Shivraj Singh Chouhan concerning communication between the state and central authorities.
The state government noted that procurement of wheat and paddy at Minimum Support Price involves a mandatory 3 percent RDF allocation intended for rural infrastructure maintenance.
“On November 28, 2024, I, along with Cabinet Minister Lal Chand Kataruchak, met Union Minister Prahlad Joshi and demanded the release of Punjab’s Rural Development Fund (RDF) money,” Finance Minister Harpal Singh Cheema stated. “On July 17, Chief Minister Bhagwant Singh Mann met Prahlad Joshi and reiterated the same demand.”
He listed several subsequent interactions, including meetings with Union Finance Minister Nirmala Sitharaman on January 10 and June 30, and discussions between Chief Minister Mann and Union Home Minister Amit Shah on January 17. The matter was also formally raised during GST Council sessions and through official correspondence sent by the Punjab Assembly Speaker and the state finance department.
“More recently, on March 14, 2026, I sent an official letter to the Government of India demanding the release of Punjab’s outstanding RDF funds,” the Finance Minister affirmed.
Addressing past concerns regarding fund utilization, the state administration noted that legislative updates made in 2022 strictly govern fund disbursement.
“The Central Government earlier used to talk about misuse of funds, whereas the truth is that the misuse took place during the previous Akali BJP government,” Finance Minister Cheema declared. “The Aam Aadmi Party Government, in 2022, duly amended the law and stipulated that RDF money would be spent only on improving farmers’ mandis and rural roads.”
He maintained that withholding the statutory funds impacts agricultural infrastructure and rural development, adding that the state will continue to seek the early release of its legitimate financial share.
