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PUNJAB BUDGET 2008 - SOME ISSUES

On 11 March 2008, Mr. Manpreet Badal finance minister of Punjab will be presenting his second budget. He seems to be in dilemma over the continuation of power / water subsidies to the rural sector, the core reason for the financial debacle of the state. Even opposition is not in favour of continuation of these subsidies but for vote bank reasons.



 

It may be noted that the interests of Punjab are much more important that the whims of political parties including the ruling junta. Dilemma of Mr. Manpreet Badal is some what similar to that of Arjuna in Kurukshetra in taking harsh fiscal measures for the development of the state.

Punjab needs to put an end to the regime of non productive spending by the government except for the poor and economically weaker sections of the society. There is no fun of pleasing well to do classes just to get more votes. It is not prudent for the long term future of the state.

State needs to spend more on enhancing the living standard of the masses. As a matter of fact 70 percent of Punjab population is deprived of basic hygienic conditions of standard living.

Resources saved by reducing subsidies can be used to meet these disparities. It is highly unfortunate that political parties in the state do not talk about these problems aloud and are just bluffing.

Regarding farm subsidy, rich farmers need to be excluded from the net. Further VAT regime should be broadened after reexamination but tax rates should be in parity with other states. People of Punjab must learn to pay for the cost of facilities offered by state. They can expect better quality of service from the local governments.

Politicians also need to come out from the illusion that offering freeships fetches more votes. Unfortunately all political leaders with ancient bent of mind are trapped in this falsehood.

Industrialists will not set their mood in Punjab in spite of best sops in case power cuts are not over. It is prudent to purchase electricity from surplus states to meet growth needs.

Mr Manpreet Badal should be given independence by peer group to prove his business acumen on 11 March. Govt. need to improve real estate business scenario through flexible revenue policies. In Amritsar, impact on revenue collections of the govt by banning power of attorney on property business may be examined. It is felt that on certain matters political masters in Punjab are ill advised by some odd persons. It needs a review.

Mr Manpreet Badal must wave CLU charges on establishment of school colleges hospitals outside municipal vicinities. Punjab has every potential to become education and health hub in India.

Further service industry should be given tax sops in forthcoming budget so that many Gurgaons Noidas can emerge near Amritsar, Firojepur Gurdaspur and Bathinda. Punjab needs diversification from agriculture to more and more of industrial activities.

Source : indiainteracts.com - Chennai, Tamil Nadu, India, dated 18/02/2008

 

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