Pointing that Punjab was the “most indebted state” in India with debt accounting for 50 percent of state GDP, the state Congress president Navjot Singh Sidhu on Monday warned the government from “borrowing” further. At the same time, Sidhu demanded “transparency” in the allocation of funds for various schemes and sops announced by the government.
Sidhu, in a series of tweets on Monday, made another attack on his own party’s government in Punjab by pointing that “half of our expenditure is funded by expensive debt”.
“Let’s not derail from real issues to which every Punjabi and party worker demands solution,” he said.
He also maintained that stopping theft of the state’s resources, filling up the public exchequer and creating a welfare state through income generation was the solution.
Notably, Sidhu’s tweets came days after he had expressed concerns over the state’s “deteriorating fiscal health”. Sidhu even courted controversy when he had stated that the State may be heading for a civil war-like situation if enough resources were not generated to pay off its public debt.
After taking over as the Chief Minister, Charanjit Singh Channi has made a series of people-friendly announcements, including a cut in power tariff, decrease in VAT on fuel, free water for many households, reducing sand rates, and regularisation of 36,000 ad hoc posts, all of which have financial implications.
However, Sidhu has been slamming the Government for its populist moves and questioning its source of funds for the slew of schemes announced by the Chief Minister Channi in the run up to the assembly elections in 2022.
“Today Punjab is the most indebted state in India. Debt accounts for 50% of State GDP. Half of our expenditure is funded by expensive debt. Lets not derail from real issues to which every Punjabi & party worker demands solution, because there's #PunjabBeyond2022 #HaqiqatPunjabDi,” he tweeted.
In a related tweet, Sidhu asserted, “Financial Accountability and Transparency are pillars of Punjab Model. Accountability demands revealing sources of funds at every scheme announcement, whether from income or from more debt. Transparency demands making public state’s fiscal health every month.”
“Borrowing is not the way forward! Taxes should not go to settle debt but go back to the people in the form of development. Solution oriented model is to stop theft of State’s resources, fill up public exchequer and create a Welfare State through income generation,” he said in another tweet.