Chandigarh: Just before Assembly elections, arch ministers in India adore to open their purse strings and hurl out a spate of sops and gratification schemes to stir voters.
But, Punjab Chief Minister Parkash Singh Badal will be deprived of a oppulance of attack a debate route in a fire of excellence given of an economy that resembles a mess, many of it combined by his possess government. Forget sops, a Punjab supervision doesn’t even have adequate in a coffers to compensate salaries.
Punjab’s sum debt is around Rs 1.02 lakh crore during present. By a finish of subsequent fiscal, it is approaching to arise to some-more than Rs 1.24 lakh crore, according to state’s possess admission. The debt weight will some-more than double from Rs 61,850 crore in 2007-08, when a Akali supervision took over a supervision from a Congress.
The sum debt is now roughly 30 percent of a state GSDP, a figure that is many aloft than a inhabitant normal of 21 percent. The outrageous debt has led to a origination of a committed seductiveness guilt of Rs 9,900 crore per year. This army a state to spend roughly 21 percent of a income profits on payments of yearly interests alone.
Other indicators indicate to bad financial health. The state’s income necessity now stands during 1.8 per cent of GSDP. Though this has come down marginally given 2012-13, it is shocking given many Indian states are now income surplus.
Earlier Punjab used to steal income from a markets heavily, though over a duration of time a banks grew heedful of lending income given of a bad record of payback. So 3 years ago when Punjab attempted to steal around Rs 2000 crore, a nationalized banks refused indicate blank, observant they could lend income for infrastructure development, though not for daily losses of a government. This forced a state supervision to sell supervision owned land to lift supports to waves over a strident financial crunch. In many cases a supervision even mortgaged land and properties of a state supervision during a complicated seductiveness rate.
In a final 3 years (2013-15), a Badal supervision has been forced to debt 12 primary properties of a state to lift around Rs 2100 crore to run a government, compensate salaries to 4.5 lakh staff, income to 1.5 lakh pensioners and make financial arrangements for several subsidies and financial supervision schemes.
The mortgaged properties embody Punjab Urban Development Authority (PUDA) building, Mohali, PUDA Enclave Jagraon and Patiala, Jail site property, Jalandhar and Mental hospital, Amritsar, Gandhi Vanita Ashram for widows in Jalandhar, PWD department-Patiala, Old District Courts, Ludhiana etc. The properties have been mortgaged to Punjab National Bank, Canara Bank, Bank of India, Bank of Baroda and Punjab and Sind Bank.
Defending a Punjab government’s pierce to debt property, Manvesh Sidhu, arch administrator, Punjab Urban Development Authority, pronounced it was zero surprising and many governments follow a same procedure. “We are regulating this slight process (mortgage) for a right purpose and to accommodate a expenses. We have lifted Rs 2,100 crore from banks, though we are not delinquent on repayment. We are profitable behind income on a right time during 10 to 12 percent seductiveness rate. We have already paid behind around one fourth of a loan income taken for 7 years. Mortgaging is always improved than offered land outright,” Sidhu told Firstpost.
Interestingly Manpreet Badal, personality of Punjab People’s Party (PPP) and former financial Minister of Punjab, had cautioned a supervision about a shrinking financial position of a state when he was partial of a government.
Manpreet, who is associated to a arch minister, had suggested measures like cuts in several subsidies and ways to lift resources, though a Badals had against his pierce on a belligerent that these were anti-people. In criticism Manpreet Badal had quit his post and a Akali Dal.
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Talking to Firstpost, Dharamvir Gandhi, AAP MP from Patiala pronounced a Akalis are to be blamed for a financial crisis. “Punjab is financial disaster today. It is broke given a Akalis financially busted a state. Even if a new celebration comes to power, it will need during slightest 15 years to set things right,” rued Gandhi.
“All a income earning resources have been usurped by a Akalis to fill their personal coffers, even as a state book stays empty. The state could have warranted distinction from a ride department, though it is Badals’ private train use that is creation all a money. The Badals have corner over a silt and sand mines of a state. The wire network is owned by a Badal family. There is so many of crime in a state. All these private enterprises have deprived a book of revenue,” Gandhi told Firstpost.
Former financial apportion and Congress MLA from Sanour, Patiala, demanded that a supervision immediately announce a financial puncture in a state. “The Akalis have sole and mortgaged supervision properties to lift Rs 2,100 crore. The state is totally broke currently given of financial mismanagement. There is no growth work anywhere, roads are damaged solely in Bathinda (pocket precinct of a Akalis) , energy supply is poor, there is no income to compensate salaries to staff. Wary of financial mismanagement, a BJP supervision during a Centre has not given it any special package to Punjab,” he said.
Finance Minister Parminder Dhindsa, however, denied there was any financial predicament in a state. Dhindsa told a media in Chandigarh that a Punjab supervision was clearing some-more than Rs 4,000 crore bills each month and was perplexing a best to recover salaries and bills on time.