War between Badal cousins is fight between new economy,old politics

Manpreet’s suspension is bound to be read as Sukhbir’s victory,but it may be more than just that. The latest confrontation between the cousins has been playing out in the backdrop of a growing presumption of a change of guard at the SAD’s top.

In this uncertain moment of expected transition,Manpreet’s oft-repeated argument against the unproductive subsidies that have sapped Punjab’s economic health triggered an unprecedented chain of reactions stoked by those who are politically committed to,or have developed interests in,the protection of the state’s sprawling subsidy regime.

Immediately after the suspension,the SAD spokesperson suggested that Manpreet should now resign from the ministry on “moral grounds”. Chief minister Parkash Singh Badal,recovering at the PGI from a fall at his residence a few days ago,who has so far avoided publicly taking sides between his son and nephew,may now be forced to shed his reticence. Completely isolated in his own party,Manpreet has failed to find any support so far,even in coalition partner BJP.

The current controversy was triggered by Manpreet publicly welcoming Union Finance Minister Pranab Mukherjee’s proposal in which he assured the waiving of around half of the revenue deficit state’s debt of Rs 70,000 crore. In return,the state would have to agree to cut down subsidies on power and water,levy property tax,disinvest PSUs that are in the red,plug losses suffered by the transport department and put local bodies under central auditing.

While Sukhbir said the proposal was “stringent and impractical”,Manpreet described it as a “golden opportunity” for the state to place itself on the road to economic recovery. In an unprecedented move,the Punjab government asked the chief secretary to hold a press conference to say that there was no firm proposal of such a waiver from the Centre. Next,Sukhbir marshalled in district jathedars or party chiefs from the districts who bayed for Manpreet’s blood,accusing him of praising the Centre.

The chief minister stepped in to douse the fire by handing a virtual “clean chit” to Manpreet but came under pressure the same evening,after the latter held a press conference in which he said he was being “bullied” by some leaders. The senior Badal then issued a stern statement asking everyone to maintain party discipline.

At the heart of the current developments is Manpreet’s known opposition to the indiscriminate doling out of subsidies and his assertion that the state was on a slippery slope due to poor fiscal health. He has been vocal in demanding the scrapping of free power to farmers,pointing out that it has not only led to wastage and pilferage of power but has also increased pressure on the water table. The state has been losing at least Rs 3,100 crore revenue on account of the power subsidy every year.

Under intense pressure from the Centre,the state had finally disbanded the electricity board,and levied a marginal charge for use of electricity by farmers,only to give back the amount to them as a “productivity bonus”.

The finance minister had openly resented the fact that he was kept away from the high-level committee set up to find ways and means to generate revenue. Manpreet’s suggestion that the retirement age of government employees be increased from 58 years to 60 years,which could have resulted in an immediate saving of Rs 800 crore,was also shot down. He was also opposed to the atta dal scheme,which is costing the exchequer Rs 900 crore.

It has been Manpreet’s view that the revenue-deficit state needs tough fiscal reforms and tightening of the belt by all concerned. He has often objected to indiscriminate foreign travel by his colleagues in the ministry and has,in fact,taken on the Assembly speaker by denying funds to him and his staff to travel abroad. He opposed the raising of salaries and perks of MLAs but he was overruled,and the Cabinet recently approved a steep hike.