Punjab to cut down expenses

CHANDIGARH, DEC 10: Reeling under one of the worst resource crunches, the genesis of which is being traced to militancy in the State, the...

CHANDIGARH, DEC 10: Reeling under one of the worst resource crunches, the genesis of which is being traced to militancy in the State, the Punjab government has decided to enforce strict financial discipline and implement cuts in the areas to be recommended by a three-member committee constituted on Tuesday.

The committee with Finance Minister Capt Kanwaljit Singh, Science and Technology Minister Mahesh Inder Singh Grewal and Food and Supplies Minister Madan Mohan Mittal as members would identify the areas of discipline and submit its report within 15 days for follow-up action. The committee which would mainly deal with the austerity measures, may also identify areas of possible resource mobilisation.

The decision to this effect was taken at a four-hour long meeting of the cabinet sub-committee.

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As a first step to introduce fiscal reforms and improve financial position, the State government is coming out with 11-point programme which includes cut on unproductive manpower and streamlining the functioningof the public sector undertakings which are eating into the State coffers.

The situation is so alarming that the Finance department sent out a circular recently explaining the financial position and apprising the Chief Minister and the Finance Minister. It was a red alert on financial position.

The measures to be taken to introduce financial discipline include self-imposed restrictions by all sections, including ministers, bureaucrats and police officers.

It was pointed out in Wednesday’s meeting that the financial situation started worsening after 1983, coinciding with militancy, as the emphasis shifted from resource mobilisation to depending upon loans. The State faced the worst ever financial situation with negative balance in 1992. It was the period when the Beant Singh government took over.

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Reference was also made to the top heavy administration, both civil as well as police. Comparisons were made to the number of financial commissioners in the civil administration and Additional DirectorGenerals of Police and Inspector Generals of Police as compared to 1983-84. The predominant feeling in the meeting was to reduce the number of top posts, possibly to 1985 or 1986 level. The increasing expenditure of the Legislature and the council of ministers also came under scrutiny.

“All the institutions have been equally responsible for this state of affairs over the years,” the sources said. However, it is the unprecedented hike in police expenditure which was attributed as one of the main reasons for the resource crunch. The expenditure under this head alone has multiplied the most during the last 15 years.

Sources said the fiscal policy would be given the final shape on the basis of the recommendations of the three-member committee.