Open House: With better revenue receipts, which sectors should the government prioritise in spending?

If things are better, create jobs for youth

Along with a few states in the country, Punjab’s fiscal health has been on the decline for decades. Liberal subsidies continue to bleed the state exchequer. Every year, the debt is being serviced by taking an additional loan. The Punjab Government is in an intricate slow growth and high debt trap that is limiting its capacity to incur the requisite capital expenditure and is impairing its quality of governance. Previous governments are blamed for lack of a credible road map to resuscitate the ailing economy. Noted economists aver that the present government may soon begin defaulting on its obligations, while also compromising the aspirations of the people for better prospects in future. But the AAP dispensation claims to stem the downslide of financial bankruptcy through sincere and sustained efforts. With revenue receipts looking better, the government should create jobs in various sectors as the youth of Punjab is already battling an extraordinary unemployment situation, is falling victim to drug cartels and organised armed gangs, and is migrating abroad for greener pastures. Health, education, agriculture and industry sectors call for corrective measures. Moreover, the government should liberally spend on road and water supply infrastructure, proper environmental management, modernisation of the police force to maintain law and order situation, and construction of houses for the economically weaker sections of society.

Tajpreet s Kang

Focus on MSP for crops, diversification

In a democratic setup, people vote for a political party that can frame people-oriented policies and give them the best transparent governance. However, due to rapid corruption in government departments and the pendency of cases in courts, the faith of people in governance is decreasing by the day. Moreover, politics has become a game of rich and influential people. It is good that the AAP government is according priority to the needs of the common man and framing pragmatic policies, and hence revenue receipts are looking better. The increased revenue should be spent on the basic infrastructure of the education, health and agriculture sectors. The state’s economy is highly dependent on agriculture. Diversification is the main area where the government needs to put in efforts to replace paddy and wheat. For that the government needs to give MSP for all alternative crops that are environmentally sustainable and require less water. For example, maize and cotton can replace the water-guzzling rice crop from the Kandi Hoshiarpur belt and the Malwa belt area of Punjab, respectively. Providing MSP for the summer moong crop is another good step. Similarly, chili which is a spice crop grown successfully in Ferozepur. Malerkotla belt is best known for growing vegetables and the area under vegetables can further be increased if the government can bring cold storage in agricultural market yards. Henceforth, what is required is sustained efforts to bring more alternate crops with better post-harvest infrastructural facilities so that the agrarian economy can become environmentally sustainable and grow at a higher pace.

Harvinder Singh Chugh

Bring more buses on road, buy medicines

Generating additional revenue has always been the priority of any government because the development works can only be executed if the influx of revenue is much more than the expenditure towards salaries and other expenses. The state government’s claim that the revenue generation has increased in several departments is good news as populist measures upset the state exchequer. The additional revenue generated should be expedited on purchasing of sports kits so that these can be distributed to the youth to encourage them to participate in sporting activities rather than indulging in drugs. The scheme by Punjab Government for free travel to the women in state-run buses has certainly upset the generation of additional revenue in the Transport Department. In order to ensure recommended capacity of bus passengers in the Roadways Buses, the Transport Department should be given funds to make off-road buses operational. Besides, the government should allocate more funds for easy availability of RO drinking water in cities and villages, especially at bus stands and public places. The government should purchase life-saving medicines and these should be made available at the Civil Hospitals at subsidised rates. The funds should also be spent on cleaning of ponds in the villages and drains to keep water table healthy and pollution free. The discharge of effluents into the water bodies from factories should be stopped and more money should be pumped into making treatment plants function optimally. State roads, sewerage too require additional spending. The funds are also required for proper distribution of electricity and the area wherever transformers have been installed safely.

Rajat Kumar Mohindru

Equip agri sector with technology, expertise

In view of the recurring threats faced due to events of climate change, such as heatwave, unseasonal rain, erratic weather conditions, etc., it becomes vital for the government to accord priority to climate adaptability and sustainability sector. Agriculture is the primary sector, which bears the brunt of global warming, therefore, there must be due funding for training, equipping farmers with the requisite expertise, equipment to protect their crops from any damage and also for providing reparations. Secondly, the government must focus on water and sanitation as well, as our subsistence is jeopardised by the depleting groundwater levels and pollution of water bodies by discharge of untreated waste into them. The sewage and water recharge system need to be strengthened. Thirdly, child and women welfare must be stressed as both are assets for any state’s progress. Fourthly, sports and youth development need to be heeded in order to ensure a fit, enthusiastic Punjab. Besides, education and health are even significant fields, which require sincere efforts for healing our province. Last but not the least, the police, which is in dire need of a revamp to handle the menace of drugs, arms smuggling, gangster culture, rampant use of drones by enemies, etc. Rest, it can be just hoped that the finance or money reaches into the hands of right people, who possess the honesty and righteousness for the amelioration of our territory.

Anshika Kohli

Upgrade edu sector to secure youth’s future

The improved working of various government departments in Punjab is half job done. There is still untapped potential to make the process of revenue generation more efficient and robust on sustainable basis. However, there is still a greater need to prioritise the expenditure proposed to be incurred by various departments and ensuring optimum use of limited revenue sources through proper planning and austerity measures. Although, the present level of working even in every department is craving for more funds, yet putting more funds into the education sector cannot be underestimated. The state of education in the state, particularly in rural and border areas, is in a shambles and urgently warrants massive investment on basic infrastructure. Capital expenditure on modern school buildings, playgrounds, sports equipment, etc. is heavily required to attract local students. No village and town should be left without such infrastructure and not without minimum number of staff for running them efficiently and with result oriented performance. There is scope of carrying out massive reforms in existing education infrastructure and funds are required to be allocated for the purpose. Teaching faculty in schools should not be allowed to be disappointed due to cut and irregular reimbursement of their salary and growth of their job carrier. Previously, Punjab has neglected spending in the field of education and everyone, particularly the youth, had to suffer heavily.

Jagdish Chander

Mounting debt will even out improvement

The AAP government has claimed that the state financial situation is improving. Accordingly, Budget estimates for the ongoing financial year have also been raised by 26% over the last fiscal. While revenue receipts are now promising, mounting debt burden is not letting any respite to the state bourses. Punjab’s outstanding debt is currently more than 50% of its GDP, which is more than four times its revenue for the financial year 2022-23. The people of the state expect good governance, for which the government has to come out with robust planning to reduce the whooping debt of Rs 3 lakh crore, which eats up a major chunk of the state earnings. The government may be well advised to present a white paper on segregated debt position vis-a-vis sustained economic planning to relieve the stress in a time-bound and efficacious manner. Certainly, doling of freebies can’t be tolerated anymore and the government has to refrain it by introducing innovative reforms. All sorts of extravaganza in the government spending for mere populism projections will have to be curbed. Agriculture, the backbone of Punjab economy, must get adequate support. More jobs creation is essential to check youth’s exodus and flight of capital to foreign countries. The government can concentrate on certain areas to raise money and ensure improvements. Marriage palaces and banquets, for instance, earn hugely. They need be taxed flatly to generate more revenue. Since the government is encouraging mohalla clinics and government hospitals, private hospitals and clinics in urban areas should be subjected to levies so that they spread to countryside where adequate medical facilities are lacking. Power theft be prevented. PEDA must focus on renewable sources of power generation adoption. Private schools continue to loot parents; therefore, government institutions be improved to divert students towards them. Free power be limited to a minimal population and people who can afford must not be subsidised. Institutions which are not viable be shut to save undue expenditure incurred. A thrust in such areas will definitely lead to rapid growth & enduring development.

Nirmaljit Singh Chatrath

Invest in waste mgmt in urban areas

With revenue receipts improving, the government can specify priorities in finances and hence go an extra mile in the development of the state. Besides education and health, the government can accord priority to cleanliness. A clean habitat with proper garbage management and disposal and effective drainage is the need of the hour. The 4Rs — recycle, reuse, reduce and refuse — are the basic fundamentals to ensure clean environment. The life in urban areas is under stress due increasing impact of greenhouse gas and pollution. The government, therefore, must increase its spending on ensuring a cleaner and greener Punjab! With such endeavours, the government will not only secure the future of Punjab but also the entire world. Increased funding for creation of a sustainable ecosystem will make sure the future generations aren’t deprived of basic prerequisites of survival i.e., clean water to drink and fresh air to breathe.

Lakshit Jindal

More corrective steps needed for gains

In the past, Punjab’s economy was considered most dynamic and prosperous at the time of active state intervention. Today, Punjab is reeling under a massive debt burden. Its outstanding debt is more than 50% of its GDP, and more than four times its revenue for financial year 2022-23. The debt figure, pegged at Rs 3,12,758 crore for the previous fiscal, is now being estimated to cross Rs 3,27, 050 crore-mark at the end of the next financial year. The economy needs urgent attention as the RBI has cautioned debt consolidation. However, lambasting the Centre for ignoring the long-pending legitimate financial demands of Punjab, the AAP government has assured to provide all financial relief to common citizens through its programmes and policies. It has taken the measures to bring fiscal prudency and efficiency in management of state finances. Amid criticism that there is no ‘perceptible departure from past practices’, the government strongly claims that the economic health of the state is improving with several departments witnessing an increase in revenue generation. It should address the multiple problems facing the state. Corrective measures are still required to end corruption, unemployment, drug smuggling, illicit sand mining, agrarian and industrial crises. The government should also update the health and education sectors and improve environment-solid waste-disaster management.

D S Kang

QUESTION

The alleged involvement of an AIG in a drug smuggling case has once again put the spotlight on the nexus between officials and peddlers in the state. What steps can the Punjab Government take to stamp out the drug menace in the state?

Suggestions in not more than 200 words can be sent to jalandhardesk@tribunemail.com by Thursday (April 27).