FOR the past some weeks, a two member committee setup by the Punjab government has been struggling hard to take Punjab put of the current fiscal mess. These members are all powerful of the ruling Akali BJP coalition. Mr. Sukhbir Singh Badal is president of the Shiromani Akali Dal and Mr. Manoranjan Kalia is a senior minister of industries. The two have met a number of times without coming to any clear solution.

Everyone from the chief minister, Mr. Parkash Singh Badal downwards realise the current deteriorating fiscal health of the state of Punjab which is not only impacting the pace of development but may even lead to stoppage of salaries to its burgeoning staff. The state has been lacking in many essential services like education, health, power and irrigation etc. Already a large number of schools are without teachers, hospitals sans medicines and doctors, there is an acute shortage of electricity, water supply and canals and irrigation courses requiring urgent repairs have no funds to fall back. It may further slip down as the finance minister Mr. Manpreet Singh Badal fears.

The Committee has hinted at some kind of bulk charge on the electricity motors installed at the farms. How much should be charged is being heatedly debated. While Badal junior wants the minimum rate per horse power, Mr. Kalia insists on near double of that amount. This difference is not based on any rationale, but the political constituency each one of them has. Since BJP is an urban Hindu party, it cares more for its constituents. It recently got the higher electricity charges installed on the plea that since farmers are getting free power, why the urbanities should be charged more. The other side, the Akalis who occupy important positions since their number is more in the assembly push hard for the farm sector, their electorate. The two parties often find themselves in a bind on crucial issues. The industrial policy recently announced by Mr. Kalia after over two years of confabulation which offers major concessions to the industrial sectors has left many Akalis fuming. This despite the fact that the chief minister has put his seal of approval. Whether it attracts any industry since the power situation is grim as is the poor infra structure is another matter. The differences between the two partners do make political sense, but no economic logic at all.

While it is possible that the chief minister may finally veto any withdrawal of power subsidy in the farm sector since he understands the political cost , the issue of subsidy would remain hot on the political map of Punjab. Mr. Badal has recently rebuked the union government for announcing a meager hike of Rs twenty per quintal in the minimum support price [MPS] for wheat. He calls it as cruel joke on the farmers. How would he reconcile levying any charge on the farmers who are already up in arms against it. They are also opposing any privatisation of the electricity sector. Their restlessness is too deep and can explode anytime and the Akalis know that well.

The challenging issue of subsidies is being debated all over the world in this era of globalisation. America and European countries that offer huge subsidies to its farmers that include British Queen Elizabeth and the large number of big and small princes and princesses all over would wish India and other developing nations to get rid of the subsidies. This message comes out clearly from several rounds of meeting of World Trade Organisation. India, Brazil and many other countries stoutly oppose this.

Farms sector unless one owns beyond fifteen acres of good quality land falls in the area of subsistence occupation. How many gentlemen have taken to farming as a profession in the last many years? On the other hands in Punjab alone over 1.5 lakh farmers have left farming during the last decade alone to move to mushrooming urban areas. Farming compares poorly against trade, industry and even professions like law and medicine. Even a petty trader can make in five years, what a farmer would take 20 to make. This is one major reason for the indebtedness of the farmers and their suicides. Last year alone over one lakh farmers committed suicides. Particular victims were those who went in for commercial farming like that of cotton and sugarcane. Punjab farmers are under debt burden of Rs 32,000 crore and this despite bumper crops of paddy and wheat.

It is true that many farmers in Punjab would like to have an adequate quality supply of electricity than free supply. But this argument comes due to two reasons; they want quality and adequate supply and since water table is falling each crop season, they are forced to dug deep, spend huge sums of money and feel cheated at the end. The state ought to take care of the grower of food, the ann data.

The current of level is subsidy is welcome otherwise. They are far sure to understand the government apathy and poor governance besides the large scale and deep corruption.

Yet the question that nags the policy planers remains; can Punjab afford to offer subsidies to many sections including industrialists and the farmers or would not it better to spend that money on providing quality education , health care and building infra structure. How to go about would require a mindset different from the present one.

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