Punjab’s Power Subsidy: A Rs 1.25 Lakh Crore Question

Punjab’s free farm power subsidy, launched in January 1997, has ballooned to a staggering Rs 1.25 lakh crore by March 2025. The initial annual outlay of Rs 604.57 crore in 1997-98 has witnessed a dramatic seventeen-fold increase to Rs 10,000 crore in recent years.

This massive expenditure raises serious questions about the scheme’s long-term sustainability and its impact on the state’s finances. Experts are divided on its effectiveness in boosting agricultural productivity, with concerns about potential misuse and environmental implications.

The escalating cost coincides with growing concerns over Punjab’s fiscal health. The state government is now grappling with the challenge of balancing the needs of farmers with the overall economic well-being of the state.

This burgeoning expenditure necessitates a thorough review of the subsidy’s efficacy and a critical examination of alternative, more sustainable agricultural policies. The implications for Punjab’s budget and its future economic planning are profound and demand immediate attention from policymakers. The debate over the scheme’s future is crucial for the state’s financial stability and its agricultural sector.