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Punjab's young finance minister faces tough task to improve fiscal health of state
Friday, March 16, 2012 - 12:00
Source:
Punjab Newsline Network
By Naresh Kumar Sharma
CHANDIGARH:As the Union finance Minister Pranab Mukherjee is presenting his seventh federal budget, new government in Punjab faces its own challenges to improve the fragile financial condition of the state.With Parminder Dhindsa representing Sunam assembly segment being given finance portfolio, makes him as the youngest finance minister of the state but holding this ministry would not be an easy task for him. Dhindsa(38) who is MBA and B Com had held the PWD ministry in the previous SAD-BJP combine government headed by Parkash Singh Badal.
He is son of son of Rajya Sabha Member of Parliament and former Sports Minister Sukhdev Singh Dhindsa and is regarded close to both Chief Minister Parkash Singh Badal and Deputy Chief Minister Sukhbir Badal.As state finance minister, Dhindsa would not only have the stiff challenge to generate the resources of the state but also manage the fiscal affairs notwithstanding the fact that Punjab was in a huge debt-trap.
The economy of Punjab is in a shambles. Owing to the fact that Akalis believe more in populist agenda, the state's debt is around Rs 20000 crore, which is pushing the state into a massive debt-trap.The public debt could be inching towards Rs.80, 000 crore.Besides this, there is state-guaranteed debt, deferred liabilities and loans raised by various parastatal entities by mortgaging assets and future revenues, which stands around Rs.70,000 crore.
The 13th Finance Commission has singled out three states-Kerala, West Bengal and Punjab as critical needing imperative fiscal reforms. The industrial sector has also not witnessed any significant growth with industrial units moving to neighbouring state of Himachal Pradesh, Gujarat, Rajasthan and Madhya Pradesh owing to inadequate infrastructure and lack of needed power supply.
In the backdrop of all this, it would be interesting to see that how the new finance ministry would be able to manage the financial affairs of the state. With very less and in fact no room for any sort of fiscal maneuvering, he would find the things very tough in terms of fiscal discipline and management.
Experts feel that time has come for state to take some hard decisions to curtail unplanned expenditure and general resources at its own to improve the economy of the state. They said that in order to improve financial health of the state, the new government would need to shed its populist progammes meant merely for pleasing a particular section and look at the broader picture. However, they said that it was easier said than done.
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Punjab Newsline
Friday, March 16, 2012 - 12:00
Source:
Punjab Newsline Network
By Naresh Kumar Sharma
CHANDIGARH:As the Union finance Minister Pranab Mukherjee is presenting his seventh federal budget, new government in Punjab faces its own challenges to improve the fragile financial condition of the state.With Parminder Dhindsa representing Sunam assembly segment being given finance portfolio, makes him as the youngest finance minister of the state but holding this ministry would not be an easy task for him. Dhindsa(38) who is MBA and B Com had held the PWD ministry in the previous SAD-BJP combine government headed by Parkash Singh Badal.
He is son of son of Rajya Sabha Member of Parliament and former Sports Minister Sukhdev Singh Dhindsa and is regarded close to both Chief Minister Parkash Singh Badal and Deputy Chief Minister Sukhbir Badal.As state finance minister, Dhindsa would not only have the stiff challenge to generate the resources of the state but also manage the fiscal affairs notwithstanding the fact that Punjab was in a huge debt-trap.
The economy of Punjab is in a shambles. Owing to the fact that Akalis believe more in populist agenda, the state's debt is around Rs 20000 crore, which is pushing the state into a massive debt-trap.The public debt could be inching towards Rs.80, 000 crore.Besides this, there is state-guaranteed debt, deferred liabilities and loans raised by various parastatal entities by mortgaging assets and future revenues, which stands around Rs.70,000 crore.
The 13th Finance Commission has singled out three states-Kerala, West Bengal and Punjab as critical needing imperative fiscal reforms. The industrial sector has also not witnessed any significant growth with industrial units moving to neighbouring state of Himachal Pradesh, Gujarat, Rajasthan and Madhya Pradesh owing to inadequate infrastructure and lack of needed power supply.
In the backdrop of all this, it would be interesting to see that how the new finance ministry would be able to manage the financial affairs of the state. With very less and in fact no room for any sort of fiscal maneuvering, he would find the things very tough in terms of fiscal discipline and management.
Experts feel that time has come for state to take some hard decisions to curtail unplanned expenditure and general resources at its own to improve the economy of the state. They said that in order to improve financial health of the state, the new government would need to shed its populist progammes meant merely for pleasing a particular section and look at the broader picture. However, they said that it was easier said than done.
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Punjab Newsline
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