Punjab’s finances are being drained by free power distribution

Chandigarh, June 20 (Ozi news desk):  The relationship between politics and economics is often characterized by a lack of harmony. This is exemplified by the power subsidy strategy employed by Punjab’s political class to attract voters, even at the expense of the state’s fiscal well-being. This tactic has proven to be successful for political parties. The concept of offering free power to the agricultural sector was first introduced in 1997 by a government formed by the SAD-BJP alliance, which had won the elections on the basis of this promise. However, when this subsidy was later withdrawn, the Congress party suffered defeat in the 2007 Vidhan Sabha elections. Consequently, free power became a popular “lollipop” offered by political parties to entice various segments of the electorate. For instance, during its tenure from 2002 to 2007, the Congress party provided 100 units of free power to SC/BC families. Subsequently, the Akali BJP government, which succeeded the Congress, not only doubled this limit for the same category of consumers but also extended the subsidy to include freedom fighters and Below Poverty Line consumers.