Public services set to cost more in Punjab

The cash-strapped Punjab Government is all set to increase the charges for various services it provides to people in a bid to rev up its income. The user charges could go up from 10 to 50 per cent.

These charges, which form part of non-tax revenue of the state, will be increased after the urban civic body elections, expected in December. The state finance department has already started asking the revenue, local government, health, police and transport departments to review the charges of services provided by them that have not been revised for the past many years. It is proposed that the services for which the charges have not been revised for the past 10 years will see the maximum increase, while the charges for services which were revised recently will see a minimal increase.

State weighed down by power subsidy

• Rs 20,477 cr is the total power subsidy bill of the state for this year
• Fees for driving licence, birth, death & marriage certificates, arms licence, etc. likely to go up

The move to increase the charges follows the suggestions given by top economists who are being consulted by the state government to set its house in order. The issue was also reportedly discussed at a meeting of Chief Minister Bhagwant Mann and Finance Minister Harpal Cheema with former Chief Economic Adviser to the Government of India Arvind Subramanian here today. Subramanian has been meeting the two leaders for the past few months to suggest ways to get the state finances out of the red.

The suggestions to increase the non-tax revenue have also been given by Punjab’s Chief Adviser (Fiscal Affairs) Arbind Modi ever since his appointment in October. The finance department also proposed that all state departments must be allowed to increase the user charges periodically by 10-15 per cent. These include fees for issuance or renewal of driving licence, birth and death certificates, marriage certificates, arms licence, registration of vehicles, sale deeds, etc.

Against the target of realising Rs 11,246.33 crore as non-tax revenue for 2024-25, the first seven months of the fiscal (April- October) has seen the total collection of just Rs 3,607.75 crore. Since the political establishment is clear that there will be no withdrawal of the subsidies, including the power subsidy to agriculture, domestic and industrial consumers, the economists are suggesting that the state government should go in for “energy mix”, harnessing solar power by availing Central schemes and subsidies for solarisation to reduce its subsidy burden.

The total power subsidy bill of the state for this year is a whopping Rs 20, 477 crore, and the state government is struggling to pay this subsidy. As much as 19.7 per cent of the state’s total revenue is being used up just to pay this subsidy.