Struggling economy,lavish manifestoes

The states 2010-11 power subsidy bill stood at nearly Rs 4,200 crore,but that has been no deterrent to either party in promising free power to farmers. The SAD does not want to upset farmers and has promised to continue the free power regime for another five years. It has also promised free power of up to 250 watts to socially and economically disadvantaged sections.

The opposition Congress proposes to bring in a fiscal prudence law,but the nature of the largesse promised in its manifesto smacks of a lack of intent. It launches a scathing attack on the ruling party for financial bungling,but itself refrains from promising to roll back any existing subsidies or freebies or to introduce substantial reforms in critical areas of the economy. The Congress has,however,said it will enact a Fiscal Responsibility Act that will require the government to commit itself to meet deficit targets and also explain any deviation to the state legislature.

For both parties,new jobs top the agenda. Both have promised to create 10 lakh jobs but the manifestos lack specifics on delivery. Unemployment is one of the biggest problem facing the state. Even though Punjab has the fifth highest per capita income and the Indian economy is growing,the unemployment rate is higher primarily due to the laggard pace of industrial development, says PHD Chambers of Commerce president Sandip Somany.

PHDCCI focuses on the northern states. At 10.5 per cent,the unemployment rate is higher than the national average of 9.5 per cent. This should actually not be more than 6-7 per cent for Punjab, Somany says.

Over the last few years,in terms of economic growth,Punjab has been trailing states such as neighbours Haryana,Himachal Pradesh and Uttarakhand. Punjab presents a paradox of sorts,where the per capita income continues to be high estimated at Rs 67,000 in 2010-11 even as the relative growth rate has been sluggish.

Punjabs real growth rate in terms of gross state domestic product at constant prices was 7.23 per cent on an average between 2004-05 and 2010-11,compared to Haryanas 9.45 per cent,Himachals 8.30 per cent,Uttarakhands 13.19 per cent and Bihars 10.91 per cent,according to Planning Commission data.

In their manifestoes,both key political parties have announced sops for the socially and economically disadvantaged; industrial growth too finds a mention. While they do not explicitly state measures to attract investment,the manifestoes focus on public-private partnerships in critical infrastructure sectors.

Infrastructure amp; economy

Congress: PPP in highways,power,health and education; upgrade of 2,166 km state highways; 247 power supply; agro-processing SEZs; Ludhiana as air cargo hub; a National Manufacturing Industrial Zone; 10 lakh new jobs; a fiscal responsibility law

SAD: 4/6-lane highways,ring roads in major cities; Ludhiana Metro rail; 247 power supply; SME agro-industry in small towns,agro SEZ at Attari; Ludhiana as cargo and export hub; new manufacturing policy; 10 lakh jobs,Punjab as a wi-fi state; revival of SMEs,promotion of dairy sector

SCs,OBCs,EWS

Congress; Equity/concessional loans to SCs; Rs 100cr revival plan for Punjab Scheduled Castes Land Development and Finance Co; Rs 100 crore venture capital fund for SMEs; 20 reservation for SC-promoted SMEs in the procurement policy; health insurance cover for farmers,disadvantaged; life insurance for poor

SAD: Coaching for competitive exams; power up to 250W to Dalit households; free Rs 2 lakh medical care to farmers,widows,blue card holders; free 125 sq yd rural land to landless poor; free gas connections

Freebies,subsidies

Congress: Subsidised Akash tablets Rs 750 for XI-XII students; free power and water to farm sector SAD: Rs 1,000 allowance to educated unemployed; free laptops,datacards to XI-XII students