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AGENDA 2012-17 finance
Post ushers in good times for border belt
Farmers to protest in Delhi today
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High drama at prison as inmate climbs atop tank
Beant’s killer wants to donate his eyes
PPP to mark first anniversary at Hussainiwala memorial
Punjab may create separate power utility for generation
Raids at sugar mills, 3 found violating pollution norms
Teachers resent decision to pass all students
Prune police force, demands Dal Khalsa
Unaware BPL families missing out on health insurance scheme
5 booked for abducting sisters
Four held for cheating dairy firm
70 drug peddlers held in 2 days
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AGENDA 2012-17 finance Unpaid bills, salaries and arrears of state government employees; a huge debt burden of Rs 78,000 crore; and sops in the SAD poll manifesto that threaten to take away an additional Rs 10,000 crore each year. All this, from the empty coffers of Punjab. This is what stares the re-elected SAD- BJP government in the face as it readies to once again take over the reins of the state. However, perhaps, this time round, the alliance leadership seems to be conscious of how debt-stressed Punjab is. They have been quite vocal about the need for finding an effective Finance Minister for the state. After all, whosoever handles the portfolio, will be under tremendous pressure — not just to mobilise additional resources for the cash-strapped state, but also to steer it towards the path of fiscal consolidation and setting right the dismal account books. Punjab is like an ill-managed household. It spends almost Rs 3,300 crore more than it earns in a year. Its debt is double its earnings, and yet it continues to dole out new sops. While many present employees have not receive their salaries, the unemployed are being offered an allowance of Rs 1,000 per month; free education for girls up to college level; enhanced widow pension; free laptops to students and Wi-Fi connectivity. These promises made in the SAD manifesto with empty coffers will cost the state an additional Rs 10,000 crore per annum. And that too without a road map for increasing the total earnings. As the critical exercise of forming the government kicks off, a debate is on among the general public on what immediate financial issues need to be addressed by the new government. There is anxiety over the impoverished exchequer burdened with unpaid bills of Rs 2,000 crore. With excise collections now reaching a plateau, how will the state manage its rising expenditure? The huge debt liability, servicing of debt and the freebies announced will only increase the massive revenue deficit of Punjab, which is among the highest in the country. The salary and pension bill, along with debt servicing, will amount to more than 74 per cent of the state’s revenue receipts, exceeding the norm of 35 per cent laid by the Finance Commission. Fiscal reform Undoubtedly, the new government will have to start immediately on the course to fiscal reforms. Imposing certain new state taxes, ensuring better tax compliance by plugging evasion, and controlling the non-plan and administrative expenditure will be key. After all, Punjab cannot afford to miss the bus on reforms, and has to demonstrate fiscal resurgence. Talking to a number of experts and economists, The Tribune found the goal for Punjab has to be curtailing its expenditure and improving its tax-to-Gross State Domestic Product (GSDP) ratio. The ratio today is 6.5 per cent (and 9 per cent if you add the Central taxes), which is the lowest among states. Most states have a tax-GSDP ratio of 9.5 per cent. If not higher, the state will have to bring this ratio at least on a par with the other fast-growing states such as Gujarat, Maharashtra and Tamil Nadu. With the state having one of the highest per capita incomes, the tax-GSDP ratio, too, should be higher. By raising this ratio, the state could generate an additional 20 per cent in taxes. In order to raise this bar, the government should expand its house tax net, increase water and sewerage charges; impose re-registration of vehicles that are over 10 years old; besides ensuring that abiana (user charges for canal water) is collected. Get rational With a huge subsidy bill of Rs 5,000 crore — including Rs 4,600 crore of power subsidy alone — the new government will also have to relook at the concessions it has extended to various categories and rationalise the benefits. Experts suggest that the SAD-BJP government in its second avatar should also ensure better tax compliance and stop VAT and excise evasion, which alone could add upwards of Rs 3,000 crore to the state’s kitty. Local bodies The new government also needs to make its urban local bodies economically self-sufficient, i.e., generate their own sources of revenue. This will free the 10 per cent of VAT collections, which is currently going to the civic bodies, for other development activities. There is a need also to make the State Planning Board more effective, to ensure judicious expenditure by the government. THE blueprint n
To increase revenue, impose new taxes, clamp down on evasion n
Charge house tax, increase rates of civic amenities, ensure collection n
Let local bodies raise own income to become independent n
To cut expenses, rationalise subsidies, which amount to `5,000
crore; reduce expenditure on administrative machinery
How to cut govt expenses n
Cut fuel and vehicles maintenance bill n
Freeze buying of new vehicles for officials n
Reduce office expenses on staff, stationery by working online n
Cut posts of advisers, CPS/PS, law officers n
Have a skeletal Cabinet Development, but not at common man’s cost EXPERTSPEAK Raise taxes, compliance Charge house tax Cut extravagance
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Post ushers in good times for border belt
Attari, March 18 Says Sarwan Singh, a farmer from Gharindi village, "The government acquired the land for the ICP at Rs 40 lakh to Rs 45 lakh an acre. The prevailing market rate then was Rs 10 lakh to Rs 12 lakh. The government move pushed the prices northwards and ever since, there is no looking back." The cost of an acre of land along the main GT road leading to the Attari-Wagah border at present was anywhere between Rs 80 lakh and Rs 1 crore, he says. Around 130 acres of land was acquired by the government for the ICP. Manjinder Pal, a resident of Attari, says the ICP had resulted in the escalation of the land prices not only in the village but in other neighbouring areas as well. "The farmers whose land was acquired by the government shifted to nearby villages. As they had ample money to offer, the land prices surged." Gurvinder Singh, a farmer from Neshta village, says that an acquaintance of his, who earlier had two trucks, increased its number to eight after his land fetched him an impressive price. He says the people in the border area are also investing in the transport business as they knew it had assured returns on account of flourishing bilateral trade between the two countries. Apart from property prices, the residents are also minting money by setting up different businesses to cater to the needs of thousands of truckers whose vehicles are stranded in long queues awaiting their turn to cross the border. Sukhwinder Singh of Bachiwind village has opened a roadside food joint on a small piece of land that he had purchased for Rs 2 lakh five years ago. Though he himself is a farmer, his new business has absorbed a couple of his male family members who otherwise had nothing to do. Vikas Kumar, a trader from Attari, says the increasing bilateral trade had a positive effect on their business. "The sale of FMCG products has increased. Besides, various eating joints have come up and they are doing good business." The increasing trade and investment opportunities in the border area have also opened a window of opportunity for the unemployed youth who are getting engaged in different businesses. "The youth are earning as much as Rs 1,000 a day by working as porters. The flourishing transport and hotel businesses are also facilitating job avenues," says Chanan Singh from Attari. The people in the border areas foresee the scenario improving further. "If the mere setting up of the ICP has ushered in so many positive changes in the area, imagine how it will change the face of Attari once it starts functioning," is the common sentiment. Road to prosperity acres of land acquired by the government for the Integrated Check Post at the Attari-Wagah border lakh to Rs 12 lakh was the per acre market rate when the government acquired the land lakh to Rs 45 lakh per acre was the rate at which the government acquired the land lakh to Rs 1 crore is the present per acre rate, which, realtors say, escalated after the ICP acquisition process Transport business n food joints nA number of residents have opened food joints to cater to the needs of thousands of truckers operating in te area job prospects nThe locals are earning Rs 1,000 a day by working as porters nTransport and hotel businesses have also facilitated new job
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Farmers to protest in Delhi today
Amritsar, March 18 Responding to the protest call by the Kisan Sangharsh Committee, a large number of today boarded the Amritsar-Delhi Shan-E-Punjab. Kisan Sangharsh Committee president Satnam Singh Pannu said after the rally, the farmers would proceed to Parliament to register their protest there before the MPs. Pannu said their demands were fixing of prices of farm produce as per the Swaminathan Commission's report, waiver of government and cooperative loans, Rs 10 lakh in cash and Rs 5,000 in pension to the families of those farmers and labourers who committed suicide due to debt, abrogation of the National Water Policy 2012 and the Land Acquisition Act, separate budget for agriculture, implementation of crop insurance and Rs 25,000 per acre annual compensation to those farmers whose land fell across the fence along the India-Pakistan border. Meanwhile, the passengers of the Amritsar-Delhi Shan-E-Punjab had to face inconvenience today after hundreds of Kisan Sangharsh Committee members boarded the train to reach Delhi for a protest against the Centre's "anti-farmer" policies in the national capital tomorrow. Holding banners and raising slogans, a large number of agitating farmers descended on the local railway station in the noon to board the train, which departs at 3:10 pm. Attempts by the railway authorities to regulate the inflow of passengers and even the threat of stopping the train proved futile, said an official. He said it was not practically possible to stop the train to regulate thousands of passengers as it would have taken hours. Several passengers could be seen hanging on to the entry and exit gates of train compartments. They said barring the air conditioned compartment, the rest of the bogies were full to capacity. The farmers, following a call by the Kisan Sangharsh Committee, went to Delhi to protest at Jantar Mantar. On whether the farmers had bought tickets, railway station ATM Mohan Singh Sandhu said "there was no way they could have boarded the train without ticket." He, however, did not reply when asked how the farmers entered the reserved coaches.
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High drama at prison as inmate climbs atop tank
Gurdaspur, March 18 An hour before Justice M. Jayapaul was slated to visit the jail at 9.30 am, Lakhwinder Pal Singh had the entire staff scurrying for cover by perching himself atop the tank. The Judge was informed about the incident, following which he kept himself confined to nearby BSF guest house. Gurdaspur SSP Varinder Pal Singh along with DSP (City) Ajinder Singh reached the spot and held confabulations with the jail staff. The authorities tried to placate the undertrial by sending one of his friends but to no avail. Lakhwinder's bail application in an NDPS case is to be heard on March 31. Jail Superintendent Shammi Kumar and DSP (Jail) DS Randhawa asked him to spell out his demands, following which he replied, "Except for a cigarette, I need nothing." A safety net was requisitioned from nearby Army Cantonment as the authorities did not want to take any chances. The cops then came up with a novel idea of requisitioning the services of three other undertrials who, at one time, worked for the BSF and the Central Industrial Security Force (CISF). The trio made its way to the top of the tank and offered Lakhwinder a cigarette. Once his attention was diverted, two members of the commando squad pinned him down while the third one tied his hands with nylon ropes after which he was brought down much to the relief of the jail staff.
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Beant’s killer wants to donate his eyes
Amritsar, March 18 In the letter, dated June 17, 2008 and signed by the Superintendent of Model Jail, Chandigarh, Rajoana has expressed his desire that after his death, his eyes should be donated to raagi Lakhwinder Singh, who is visually impaired. The letter reads that in case that was not possible, his eyes should be given to someone else. At present, Rajoana is lodged in the Patiala jail. A Chandigarh court has ordered to execute him on March 31. Accompanied by radical Sikh leader Baba Baljit Singh Daduwal, Kamaldeep said his brother had also wished to take a holy dip at the Golden Temple sarovar. “His (Rajoana’s) foremost wish is to donate his eyes to bhai Lakhwinder Singh as he wanted to remain connected with this highest Sikh shrine even after his death. If it is not possible, he wished to donate his kidneys, heart or any other body part to some needy patients,” she said. Meanwhile, Giani Gurbachan Singh has assured to visit Rajoana at the Patiala jail and proposed to take along water from the sarovar. “I am planning to visit the jail especially to fulfill his wish to take a holy bath,” he said. Baba Daduwal criticised the Chandigarh court’s orders to hang Rajoana and said the Punjab government should intervene to get the order terminated. Meanwhile, protests were held in Jalandhar and Ludhiana today to seek the review of Rajoana's death sentence.
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PPP to mark first anniversary at Hussainiwala memorial
Muktsar, March 18 Jaijeet Singh Johal 'Jojo', PPP senior leader and Manpreet's brother-in-law, said, "We have preponed the function to March 22 due to security reasons as on March 23 a number of VIPs would be there to attend the official function to commemorate the martyrs' day." The PPP leaders will gather there around 10 am to mark the day and pay homage to the martyrs. It would neither be a political function nor a rally and there would be no political speeches, he said. Over 2,000 PPP workers were expected to attend the event. The PPP was launched at Khatkar Kalan on March 27 last year.
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Punjab may create separate power utility for generation
Patiala, March 18 However, a considerable section of the officers and the employees working with the PSPCL are against the creation of the third power utility in the form of a generation company. It is pertinent to mention that in compliance of the Central Electricity Act, 2003 and as a part of the power governance reforms, on April 16, 2010 the state government had bifurcated the Punjab State Electricity Board (PSEB) to set up two power utilities - the Punjab State Power Corporation Limited (PSPCL) and the Punjab State Transmission Corporation Limited (PSTCL). At the time of unbundling, the state government had announced that a financial restructuring plan for improving the fiscal health of the cash-strapped Power Corporation would be finalised and the interests of the entire staff would be taken care of. However, almost two years down the line, the government has failed to bail out the Power Corporation from the debt-trap. Apart from this, many of the promises made by the state government during the unbundling remain unfulfilled. Moreover, there is lack of coordination between the two existing power utilities. Officers were of the opinion that if another company was constituted, it would further aggravate the problem of proper coordination between the power utilities. Despite repeated attempts, Punjab Power Secretary Anirudh Tiwari was not available for comments. However, some of the officers of the PSPCL, while preferring anonymity, said, "The only reason for the state government to create a separate generation company may be to draw more loans for different power companies from the financial institutions, thus pushing the power sector into vicious debt-trap." Meanwhile, the non-gazetted employees working with the PSPCL have also announced that in case the state government proposes to carve out the generation company, they would strongly oppose it. Making it clear that they would oppose any move to set up a separate generation company, representatives of the PSEB Employees Joint Forum, a conglomerate of several employees unions, said that there was no logic in carving out a new generation company. Secretary of the Forum, Manjit Singh Chahal said that already the fiscal health of the power utilities was in a bad state. It would not be a wise step to put more financial burden by making the top brass of the Power Corporation management heavy, he said. "The bifurcation of the PSEB has failed to increase the revenue of the power utilities. Besides, there has been no success in bringing down the transmission loses," he asserted. Engineers' association to oppose the move HS Bedi, president of the PSEB Engineers' Association, said the independent power generation company would have its own maintenance schedules and it would not bother about the demand of power in the state. "With PSPCL facing serious payment problems due to precarious financial position, payments to generating company will be the last priority, thereby seriously affecting the financial position of the generation company, as has happened in Haryana recently. Hence, we will strongly oppose the setting up of a new generation company", he added. Coordination will be hampered, says expert All India Power Engineers Federation (AIPEF) chairman Padamjit Singh said in the generation and distribution functions in a company, it is possible to flex generation to match state requirement and ensure economy in grid operation. "With separation of functions, there will be a tendency to maximise generation, irrespective of grid conditions, which could have repercussions of the order of several hundred crores per year loss to the distribution company. The nature of business of electricity supply entails close coordination of generation and demand, which would be the biggest casualty in case of a separate generation company," he said.
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Raids at sugar mills, 3 found violating pollution norms
Patiala, March 18 Board chairman Ravinder Singh said that several teams headed by environmental engineers were directed to visit all the sugar mills to check the compliance of the pollution control norms. Ravinder further said that board teams inspected the premises of the sugar mills and detected that three units were defying the prescribed guidelines. "Teams spotted dark smoke being emitted by the erring mills. The Air Pollution Control Device (APCD) was not operational and Effluent Treatment Plants were overflowing", he said.
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Teachers resent decision to pass all students
Patiala, March 18 The teaching fraternity in government schools felt that the RTE Act was implemented with an aim to decrease the dropout rate, but it had failed to solve any purpose, as students who were very weak in studies were being promoted to senior classes. Moreover, these students are given monthly grades, based on their tests, which are added in the final exam that is merely of 20 marks. Teachers feel that students are least concerned about these tests as they are aware that they will be promoted to the next class even if they perform poorly. A school teacher said that it had certainly affected the standard of studies. "Rather than studying seriously, students have started taking education lightly as they know that they would be promoted to the next class anyway. So why study? We have often heard them laughing and saying that they cannot be failed," she added. Another teacher said that it had led to a decrease in attendance of students. "Earlier, if students didn't come to school for a number of days together, we could strike their name from the school. Students were afraid as they had to get readmitted in the school then, but now, we cannot even do that. We have instructions that we have to keep informing their parents in case they don't come to school. Most of our time is consumed in this paper work only. This has rather made students fearless and they don't bother about coming to school anymore," she said. Many teachers said that there were many students in their classes who could not even write Punjabi and English alphabets properly, but still they have to be promoted. They demanded that the government, instead of making it compulsory to promote them to next class, should chalk out a proper policy for raising the standard of education and reduce dropout rate.
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Prune police force, demands Dal Khalsa
Chandigarh, March 18 Dal Khalsa president HS Dhami and political affairs secretary Kanwarpal Singh claimed that the Chelliah Committee set up by the state government in the nineties had recommended drastic reduction in police and civil administration, which had proliferated under the garb of dealing with militancy in the state. “The state government is running on borrowed money, a debt that is to be paid by the people. Rather than opting for fiscal prudence, the Badal government is squandering the people’s money to reward its loyalists in the police force. This very first decision of the Badal government is anti-people,” they said. By having seven DGPs, the government had given the impression that "Punjab was a police state", they said. Taking a jibe at the SAD-led government for promoting three IPS officers as DGPs to accommodate their “blue-eyed boy Sumedh Singh Saini”, they alleged that the Badals had thrown all norms and ethics to the wind by appointing the “cop with tainted past" as the Punjab Police head. The duo claimed the present government had superseded four officers to hand over the reins of the police force in Saini’s hands “only to pay back for his loyalty towards the Badals”.
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Unaware BPL families missing out on health insurance scheme
Patiala, March 18 Moreover, several government hospitals, including Government Rajindra Hospital, are not registered under the scheme. The government-run health insurance scheme is for the Indian poor. It provides cashless insurance for hospitalisation in government as well as private hospitals. Every BPL family holding a card has to pay Rs 30 registration fee to get a biometric-enabled smart card containing fingerprints and photographs of the family members. This enables them to avail medical facilities up to Rs 30,000 per family per year in any of the empanelled hospitals. Pre-existing illness is covered from day one for the head of the household and four other dependent family members. The scheme is run on a shared financial contribution by both Central and state governments. Dr Hardeep Bariar, Deputy Medical Commissioner, Patiala, said, "The cards are made for a year based on the lists of BPL families provided by the Deputy Commissioner's office." Admitting certain problems in the scheme, she said, "We make the cards on the basis of the data provided by the DC office and the office obviously provides data on the basis of the population census. Now, 10 years is a long duration and during this time there are various changes, like a few cardholders pass away, some shift to other states. So it is difficult to keep a track of every new entry or exit, but now that new consensus has been carried out, most of the problems will be resolved soon," she added. Patiala Civil Surgeon Virinder Singh Mohi said the problem was that many people were not aware of the scheme. "We time and again organise awareness programmes to promote this scheme," he said.
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5 booked for abducting sisters
Tarn Taran, March 18 The accused have been identified as Randhir Singh, Gurpreet Singh, his mother Rajni, Paramjit Kaur and her daughter Harpreet kaur, all residents of the nearby Bhikhwind village. The complainant, Gurpal Kaur said the accused wanted her to marry her younger daughter, who is 16 years old, to Randhir Singh. But, when she refused, the accused abducted her both daughters from her home some days ago. However, the police registered the case only late evening.
10-yr jail for rape accused
Faridkot: The court of District and Sessions Judge sentenced 27-year-old Bittu Singh of Kameana village of the district to 10 years in jail for raping an 11-year-old girl. The court also imposed a fine of Rs 70,000 on the accused. In case of non-payment of the fine, Bittu would have to spend another three years in jail. — TNS
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Four held for cheating dairy firm
Abohar, March 18 DSP Vibhor Kumar Sharma said the police had arrested Daler Singh and Lovpreet Singh, owners of Tarn Taran Dhaba located in Kallarkhera village on the Abohar-Sriganganagar road along with driver Kulwinder Singh and cleaner Gurvinder Singh. A case under Sections 406, 420 of the IPC and Section 7 of the Essential Commodities Act has been registered. Sharma said many vehicles hired by the unit collected milk from villages in the neighbouring Sriganganagar area of Rajasthan. On return, the same halted at the abandoned dhaba where the accused siphoned off milk. The loss was compensated by pumping in same quantity of dirty water stored in underground reservoirs. The DSP said the dhaba owners had been purchasing milk from canter drivers at Rs 12 per litre and sell the same in Abohar at Rs 20 per litre. The management of the MNC had been informed and Health Department officials had been told to take samples of the milk, the DSP added.
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70 drug peddlers held in 2 days
Tarn Taran, March 18 SSP Manminder Singh said the Patti police recovered 260 g of heroin from Neelam Kumar and 255 g of heroin from Darshan Singh, both residents of Patti. He said the Sarhali police recovered 10 g of heroin from Nishan Singh. Separate cases under sections 21, 61 and 85 of the NDPS Act have been registered. The SSP said the district police had got this achievement in the last two days in which 2 kg of opium, 7 kg of an intoxicant powder, 4,000 tablets and other drugs had been recovered from the possession of the accused. — OC
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Patiala, March 18
Chandigarh, March 18
The biggest challenge before the government is to keep the subsidies as well as welfare schemes going. The state’s finances have been hit after the implementation of Fifth Wage Board recommendations, and also because of certain incentives announced by the government for employees last year. Welfare of the people and development will be our priority, and we have to find ways to generate enough resources to meet these challenges. At the same time, we have to ensure that while going for additional resource mobilisation, we do not burden the common man. This can be achieved by a marginal hike in some taxes and mainly by plugging tax evasion.
The state cannot run with the huge debt liability when new sops are threatening to take away an additional Rs
10,000 crore. The need of the hour is to raise the tax-GSDP ratio to at least 15 per cent, considering the high per capita income in the state. This alone will leverage the revenue receipts by 20 per cent. Better tax compliance by plugging tax evasion will also lead to higher revenue receipts.
— R. S. GHUMMAN, economist
The state will have to mobilise more resources, at least to the tune of
Rs 8,000 crore-Rs 10,000 crore per year. This could be done by imposing taxes on the urban population like re-registration of vehicles over 10 years old; imposing house tax and water/sewerage charges, etc. The state will also have to plug tax evasion, which could increase revenue by
Rs 3,000-Rs 4,000 crore. — Sucha Singh Gill, Director General, CRRID
To begin with, the state should freeze the salaries of ministers and MLAs. All extravagant administrative expenditure will have to be controlled. The huge subsidy/sops bill needs to be rationalised. A welfare state has to give benefits to the underprivileged, but that cannot be done from empty coffers.
— S. S. Johl, economist
