Cash-strapped govt may prune power subsidy, atta-dal

Ruchika M Khanna

Tribune News Service

Chandigarh, December 4

The state government is reviewing two major doles it gives out to the people — power subsidy to the farming community and the atta-dal scheme.

With the Capt Amarinder Singh government unable to cap the rising expenditure, it is now having a relook at the two major schemes that are draining the state’s coffers.

Official sources told The Tribune that during the two meetings held over the past one month on how to bring the state’s economy back on track, one of the issues being deliberated upon was that these two expenses needed to be curbed. This year, the government will be spending over Rs 10,255 crore on power subsidy and Rs 500 crore on the atta-dal scheme.

The government has already made an appeal to rich farmers to give up their power subsidy, although it has yielded no response. A survey of the beneficiaries in the atta-dal scheme (there are 1.39 crore beneficiaries) to weed out fake enrolments was done, but it has allegedly been scuttled by political powers at the local level as they do not want to annoy their voters. As a result, all these beneficiaries will continue to get subsidised foodgrain.

Officials say they have asked DCs in some districts to start a survey of the beneficiaries and check if people are “in need of these doles”. Based on their responses, the government could review the two schemes. “Since the state’s own earnings have been restricted, post the GST roll out, the government is under pressure to curb expenditure. Four major heads — salaries and wages, pensions, interest on loans and power subsidy — take away a major chunk of the earnings. Of the total revenue receipts of Rs 60,079.87 crore this fiscal, Rs 56,184 crore will be used only by these four heads. The cut on other expenditure should be imposed if the state has to function normally,” said a senior government official.

In a tight spot

Unable to cap the rising expenditure, The Congress government is now having a relook at the two major schemes that are draining the state's coffers

Relief on GST front

Repeated pleas by CM Capt Amarinder Singh for release of GST collections have finally yielded results. The state received Rs 960 crore as compensation for the GST for September and October; in addition to Rs 524 crore as arrears for July and August (the compensation received for these months was less). The government has also received the IGST share of Rs 488 crore for October. Finance Department officials said after meeting its committed liabilities, they would be able to release some money for social security pensions this month.