Expert dwells on state’s fiscal crisis

Tribune News Service

Patiala, July 4

During a lecture on “Financial crisis of Punjab: Causes and the way forward” held at Punjabi University on Friday, the state’s financial crisis was discussed from a historical perspective. Prof Sucha Singh Gill, an eminent economist and retired professor of the university, said the state needed a will on the part of political leaders and willingness of residents to pay taxes to get over its fiscal crisis.

Professor Gill said there were multiple reasons behind the ongoing situation and proposed a number of measures which could help resolve the crisis.

He said the culture of freebies must end in the state. Also, “The subsidies must be rationalised, tax compliance must be ensured, and measures should be taken to generate revenue from expanding urban areas,” he pointed out.

He said the state’s financial crisis started in 1975. “Before this, the state did not have any financial burden. In fact, it was a leading state in terms of finances throughout the country. The first ever fiscal burden came up in the state after the Indian Army’s action in 1984, the expenditure of which was added to that of the state’s exchequer. This burden further increased due to announcements and declarations made by political parties during legislative Assembly elections.”

He said the state government’s decision to provide free wheat flour, pulses and electricity also extensively burdened the exchequer. “The state government needs to take measures towards the development of the state which can help it in the long run,” he added.

In his presidential address, the Vice-Chancellor, Professor Arvind, also highlighted the possibility of rescuing Punjabi University from its own financial crisis by following leads provided by Dr Gill.