Punjabi University VC offered to provide forum in University for continuous discussions on the economy of Punjab
Kanwar Inder Singh/ royalpatiala.in News/ March 11,2024
Punjabi University Vice-Chancellor Professor Arvind offered to provide a forum in the university to discuss the economy of Punjab every month so, that a continuous constructive analysis of the economic conditions can be made besides, solid lines for the development of the state can be drawn.
Prof. Arvind, in his presidential speech emphasized on the need to organize such lectures of public interest in the University. He further said that there is need to issue some sort of periodical on Economic Health of the State by the collective platform of economics related departments.
The Special Lecture on the theme ‘Punjab in Debt Trap: How to Come Out of It’ was jointly organized by Punjabi University Internal Quality Assurance Cell (IQAC), Department of Economics, and Centre for Development Economics and Innovation Studies (CDEIS).
The lecture was delivered by an eminent economist Professor Sucha Singh Gill. Professor Gill argued that financial health of the state started deteriorating since mid-1980s. The successive governments in competitive populist manner not only introduced but intensified the culture of unqualified freebies and unrequired tax removals. The abolition of Octroi, irrigation water charges, sewer bills, water bills, across the board free bus pass facility, free electricity to domestic consumers, free electricity to tube wells, etc. have derailed the fiscal culture of the state.
According to Prof. Gill the overall debt of state government has crossed all the limits of fiscal tolerance. For example, up to March 31, 2022, the outstanding debt of Punjab was equal to 2.85 lakh crores. The present regime has no choice accept to procure the newer loans to pay for the principal and interest component of old loans. About 97 per cent of new loans would be used for this purpose, thereby leaving nothing for capital formation. The state has to take drastic steps to avoid the situation of ‘debt explosion’. It has to freeze its overall level of debt so, as to contain its further expansion. Even within the existing taxation framework there is enough scope for more tax collection. The policy of zero tolerance towards tax pilferage has to be adopted. Subsidies and freebies have to be rationalized. Removal of User Charges across the board has to put an end. The state government must constitute a think tank involving experts to guide it on policy matters.
Answering the questions, Professor Gill said the Corporatization of Indian state will disrupt the social and economic fibre of the country. Those who are leading farmers’ agitation are doing the greatest social service. Universities must articulate the needs of society in an objective manner.
Punjabi University VC offered to provide forum in University for continuous discussions on the economy of Punjab. Professor Jaswinder Singh Brar coordinator, CDIES, introduced and elaborated upon the theme of the lecture. Professor Jasdeep Singh Toor, Head, Department of Economics, welcomed the guests, and Dr Umrao Singh, Coordinator, IQAC, presented the vote of thanks.
