Open House: Do you think the AAP Government's decision on free power has been taken in the right earnest?

Well-thought-out policies needed

The AAP had made many poll promises to the people of Punjab in the 2022 Assembly election campaign. One of these was to waive the pending electricity bill payments of all domestic consumers and provide them 300 units of free power without any discrimination. But both these announcements have come with certain reservations. The decision to install pre-paid electricity has already ignited state-wide protests. While pending arrears of consumers having a load up to 2 kW have been waived, the PSPCL has been asked to recover defaulting amount from others within 15 days. And those who exceed the prescribed limit of 600 units in two months will have to pay for the total units consumed. Undoubtedly, the announcement to supply free electricity was not taken in the right earnest and has proved to be a sheer political gimmick and a total betrayal of gullible people who voted for the party in the hope of better governance and change. Moreover, it is not economically sustainable as it will entail an addition amount of Rs 5,000 crore annually. How can the state which is already faced with a severe financial crunch and is under a huge debt of nearly Rs 3 lakh crore manage to fulfil people’s aspirations? It will be difficult for the government to spare funds for development works in other sectors, particularly healthcare and education. Not short-term measures but well thought-out strategic policymaking is imperative to deliver the state from the mess it has fallen into.

DS Kang

State economy poised for more strain

Free power politics is in vogue in some states for the past many years. In Punjab, while electricity to farm sector is totally free, other small scale consumers are also exempted/ subsidised up to certain units of power usage. The people have become addicted to such inducements and expect more relief every time. Owing to flurry of such freebies and mismanagement of economy, Punjab is reeling under whooping debt burden of Rs 3 lakh crore. Already facing huge revenue deficit, the PSPCL is desperately approaching financial institutions for funds to meet the increasing expenses. Despite these constraints, the AAP has opted to implement its first poll promise by continuing free power to agri sector besides announcing 300 units of electricity free to household’s from July 1. Consequent upon free power decision, the state exchequer is bound to undergo excessive strain as current cost of coal is high and additional funds are required for electricity purchases from other states to meet the demand. Moreover, this expenditure not being a onetime measure is to continually drain out the limited resources of the state. Besides, there are a few more promises like quality healthcare and education at government institutions to be fulfilled, which too require heavy monetary assistance. How will it suffice, the prime motive of politicians lies to have edge over in elections at any cost. Taking note of the meagre resources of the state, it makes no sense to make ludicrous offers for votes without any road map to mobilise resources to meet extra expenditure and liquidate the existing debt burden. For smooth and sustained development, all dubious and illegal ways distorting our democratic values and monetary discipline must be nipped in the bud. In our federal structure, though the states are empowered to regulate own monetary policies yet the Centre should constitute a statutory body to monitor and advise them on prudent economic restructuring. At electioneering, print and electronic media ought to be given due credence to present political vision on issues of social and economic significance in a transparent and comprehensive manner. Our electoral system is in dire need of reforms to curb the prevailing malpractices.

Nirmaljit Singh Chatrath

Big task to generate enough money

Fulfilling one of its main pre-poll promises, the AAP government has announced to supply 24-hour uninterrupted free electricity to every household of Punjab from July 1 onwards. But many people believe that it will not be easily possible for the government to do so. Owing to the ill-conceived policies and programmes of the previous Congress and SAD-BJP governments, the state is in dire financial straits with a regularly mounting debt of more than Rs 2,83,000 crore. All freebies need a huge sum of Rs 20,000 crore annually. The Central Government has already rejected CM Bhagwant Mann’s request for Rs 50,000 crore. But for raids at certain places, the state government has not yet come out with constructive policies to rein in the sand-liquor-drug-transport-cable mafia that is still looting the public exchequer with impunity. To keep its promises of other freebies, it needs enough funds. It will be an uphill task for the state to generate enough money to buy coal for producing the required units of electricity. In the given situation, how can the government carry on developmental works in other sectors which are clamouring for improvement? Failure to perform and achieve its avowed aims will be an albatross around the AAP’s neck and will impact its victory prospects in other poll-bound states and thwart its aspirations to take on the BJP in the 2024 Lok Sabha elections.

Simran & Tajpreet S Kang

A welcome decision by AAP government

Reduced power tariffs could provide some respite from scorching summer-cum-inflation. The decision taken by AAP govt is welcoming regarding rationalisation of power tariffs, especially at the times when brunt of inflation has left no common man untouched. Govt has to look for alternative avenues to generate revenue. Reduced power tariff’s can help people to save and spend on other daily based necessities. The health of state economy can be diagnosed through extensive fiscal efforts by rationalising other revenue generating sources which had minimal monetary impact on public pocket. Although the decision ticked the right box but clarifications of the same must be unambiguous.

Nishant Suman

Create opportunities, pay for services

The chief minister had announced 300 units of free electricity each month for every household in the state. Domestic consumers on the other hand will have to pay for the free units if the consumption exceeds 600 units. They have to pay for the free units also. This free power scheme will benefit only a certain section of consumers such as BC, SC and freedom fighters. Surely it’s a step-motherly treatment for the general category. Of course, this was the key promise in their manifesto, but have they got votes only from these categories, why they have betrayed general category? For giving so much free electricity, they have not cleared, from where the money will come to fulfill it. In this way they are surely going to bankrupt or they will compensate from party funds. Families living in multistory buildings will feel more heat and shed more money or they will choose another level of corruption by installing more meters in the name of aunty, uncle and others to save units. It’s a dangerous situation. We are expecting everything free which leads to another level of corruption. Don’t divide the state into categories, it’s time to move on and let it be only one category. Create opportunities for all people to work and pay for everything which is used.

SHASHI KIRAN

How long can govt provide freebies?

Freebies are a curse that squeezes the economy in coming future because the masses become habitual of freebies rather than working hard to earn their livelihood. How long the state exchequer can bear the burden of freebies? When the state coffers are empty, the Punjab government allowing free water and electricity for agriculture sector, free travel for females in government buses for females and other freebies to the people of Punjab to fulfill poll promises has earlier cost the state exchequer dearer and now 300 units of electricity to every consumer. Here the Aam Aadmi party has tried to play a dual policy by discriminating the general public if consumed 600 plus units of electricity in two months they will have to bear the bill of all the units they have consumed where as the Punjab government has given exemption of free electricity units to a particular community. Interestingly electricity in Punjab is generated through dams, hydel projects, and thermal plants and to fulfil the gap of demand and supply of electricity the Punjab government is purchasing from the private players. How long the government can provide regular freebies to the people if the government fails to increase to generate its revenue. A new culture of freebies started two decades earlier. The declining revenue and increasing number of freebies can certainly bring down the development works in coming years. It would have been better that the government should have reduced the price of electricity per unit for first 200 units Rs 2 per unit from 200 units to 500 units Rs 4 per unit and from 500 units onwards Rs 6 per unit and similarly for industrial sector it should be Rs 7 per unit. With this the operation, repair and maintenance of electricity feeders, PVC cables, and power houses can be maintained easily without taking any loan from the government agencies. As the installations of solar power plants are at full swing with provided subsidies but how long without revenue, red state exchequer and empty coffers can plan for new alternations in old system of generating electricity and other development works.

RAJAT KUMAR MOHINDRU

Eliminate mafias to improve fiscal mess

Given the present debt position of Punjab, the decision of AAP government to allow free power up to 300 units is definitely a challenge to fiscal health of the state. However, it was bound to happen as the AAP had guaranteed the same to Punjab electorate before the elections. The issue of financial viability of such a guarantee should have been debated before the election but the historical mandate AAP got is a clear indication that the voters trusted them on the basis of their track record in Delhi and their political creditability in general. But the financial health of the state will substantially improve if the government, as promised, is successful in eliminating corruption and mafia gangs, resultantly leading to many fold increase in revenue generation. In that scenario, AAP government’s decision of free electricity will not only be justifiable, but will also prove to be a landmark in revolutionising the concept of a true welfare state.

JAGDISH CHANDER

Move will put more burden on people

The offer of this government to give 300 units of power to its consumers, free of charge, is not a wise and good one. Already the people of backward and SC community are given free power up to 200 units. This maybe appropriate. But why 300 units to every family in the state? Already the state government is under debt of Rs 3 lakh crore and it may worsen further. The farmers are already being given free power. But why to all farmers? This should only be to the farmers who have about five acres of their land. Why give free power to rich farmers like Badals and others of the same ilk. This will only worsen the burden further on the public. Even the government at the Centre is favouring Ambani, Adani and other corporate honchos with financial terms at the cost of general public. As a result the prices of all commodities are going sky high, including fuel prices. At least the government should reduce tax on electricity to give some relief to the people. Punjab Government is following the Delhi model. But the Delhi Government already has good finances in their kitty whereas Punjab doesn’t. It will definitely hit the development in other sectors like health, education and other institutions as well as infrastructure.

Dr JS Wadhwa

QUESTION

With some students again testing positive for Covid in the recent past and the district administration issuing an advisory on wearing masks at crowded places, should educational institutions continue with offline classes or revert to online mode of teaching amid fourth wave scare?

Suggestions in not more than 200 words can be sent to jalandhardesk@tribunemail.com by Thursday (April 28)