Montek panel pans farm power subsidy, recommends temporary pay cut for govt staff

Over three months after Punjab CM set up a Group of Experts headed by noted economist Montek Singh Ahluwalia to bring Punjab’s Covid-hit economy back on track, the group’s first set of recommendations has castigated free farm power as a major burden on the state’s economy, while recommending several tough measures across sectors including a temporary pay cut for employees.

The suggestions include giving Central pay scales to state government employees, pushing for an increase in professional tax, increasing excise duty on alcohol, and enhancing income from sand mining.

While claiming that farm power subsidy limits Punjab’s ability to incur other expenditures essential for state’s development, the report notes that the government has already announced that it will not adjust power tariffs.