Cut the salary bill, fix crop insurance: former Punjab farmers’ panel chairperson’s wishlist

Written by Kanchan Vasdev

Chandigarh | November 11, 2025 12:43 PM IST

3 min read

Jakhar raised concerns over rising public sector salary and pension expenditure. Citing internal projections tied to the forthcoming Eighth Pay Commission

As the Union Finance Minister Nirmala Sitharaman began consultations for the Union Budget 2026 from Monday, a set of recommendations by former chairperson of the Punjab State Farmers Commission, Ajayvir Jakhar, emphasised curbing the government’s ballooning salary and pension bill, and redirecting public resources toward productivity, research and institutional reform.

Jakhar raised concerns over rising public sector salary and pension expenditure. Citing internal projections tied to the forthcoming Eighth Pay Commission, a note by him to the Sitharaman estimated that by the time India reaches its ‘Viksit Bharat 2047’ milestone, a mid-level government employee’s basic pay could climb to Rs 5.5 lakh per month and pension payouts to Rs 2 lakh, even as 75 per cent of farmers earn less than Rs 40,000 a month.

Calling this “fiscal imbalance unsustainable,” Jakhar recommended a freeze on salary and pension outlays, pruning of redundant lower-level posts, and focusing resources on rewarding and retaining critical talent. “The central and state governments must freeze budgetary expenditure on salaries and pensions. They should reduce lower-level posts, while increasing pay where necessary, to rewards, retain or attract talent,” his note stated.

For instance, Punjab’s salary bill alone is Rs 36,000 crore every year. This is a major drain on the resources of the state. Jakhar is also chairperson of Bharat Krishak Samaj. As chairperson of PFSC, Jakhar had suggested rationalising power subsidy to farmers. However, the agriculture policy drafted by him could never see the light of the day.

Also, Jakhar has advocated a complete rethink of crop insurance forms. He has argued that the Pradhan Mantri Fasal Bima Yojana (PMFBY), under which governments collectively bear 90 per cent of the premium, has failed to provide timely or adequate compensation to farmers. “Most farmers and states are not satisfied with the outcomes.” He has called for the creation of a crop compensation fund, a simplified mechanism to address farm losses without the delays and disputes of insurance claims.

He has also suggested doubling public investment in agricultural R&D, which has declined in real terms over two decades, and imposing import duties on MSP crops so that the landing price of imports never undercuts the Minimum Support Price.

Jakhar’s recommendations extend to fertiliser policy, suggesting a 25 per cent rise in urea prices and redirection of the resulting savings into direct income or productivity-linked support for farmers. The paper also cautions that the mounting debt of state governments has reached “unsustainable” levels, with several now borrowing at rates higher than private enterprises, a distortion that limits spending on infrastructure and human resource development.

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On governance reforms, Jakhar has called for lowering the civil services exam age limit to 26 and restricting aspirants to two attempts. This is aimed at employing younger, more agile minds.

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