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Punjab economy in
doldrums, family silver now on sale
WSN Bureau
Chandigarh: At a
time when Punjab's ruling Akali Da-BJP regime is never tired of
telling us how much the state has been progressing under their
tutelage, some shocking data has come up that shows the Punjab
government has been running its affairs with money being bled from
its assets and securities, a strategy that will leave Punjab not
just poor but bankrupt to the extent where it will have nothing to
fall back upon.
The intense
criticism of fiscal situation and the hair-brained annual plan that
failed to even state where the money will come from, coupled with a
lack lustre budget and unprofessional approach of those managing the
economy has made Punjab wonder how will the affairs of the state
run.
Now, the state
of the economy has reached a motch where cash flow has vanished and
subsidy bills are rising high. In such times, pragmatism has been
given a go by and the government has resorted to selling the family
gold. Rs 400 crore worth government securities are being sold each
month in order to just stay afloat.
A report in a
leading English daily has brought about how, since January 2009, the
Punjab government raised Rs 3,458 crore by getting its state
development loans (SDL) auctioned through the Reserve Bank of India
(RBI).
"This is not
all; Punjab plans to raise Rs 5,000 crore through selling its SDL
during this financial year," it said.
In this fiscal
alone (since April 2009) Punjab has auctioned its state development
loans worth Rs 1,743 crore. With the state government facing
additional liability on account of the implementation of
recommendations of the Fifth Pay Commission from this month onwards,
the state will be raising Rs 500 crore through yet another auction
of its SDL by the RBI on August 25.
In spite of the
limited resources to raise money, Punjab has a huge annual subsidy
bill of Rs 4,500 crore. With the power subsidy bill going up to an
astounding Rs 3,142 crore (up from Rs 2,602 crore last year), and no
signs of an increase in its revenue, the state is relying heavily on
these SDLs to raise money.
Other than the
power subsidy, the state government also subsidises the Local Bodies
Department for octroi, sewerage and house tax, besides subsidising
its populist ‘atta-dal’ scheme. While the government spending is on
the rise, revenue growth is barely over 5 per cent for this year.
26
August 2009
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