Government Should Stop Unproductive Expenditures

Gurudutt Sharma

(The writer is based at Shimla)

The unproductive expenditure is on the constant rise with each passing year in Himachal while revenue generating sectors are heading towards stabilisation. The agriculture production is also stabilising now. About  70% of state’s population is associated with this sector, which no longer has remained a profitable proposition. The hydropower generation is also close to touching its potential limit and development of private area has also stabilised. The economic survey of state reveals that the estimated growth rate of Himachal will stand at 6.8% this year. Whereas the same was 8% three years back. The only satisfying aspect for the state government is that per person income has witnessed a jump by 9.1% in 2015-16. The government’s wrong economic policies, funds shortage and backwardness of different areas have remained major factors behind rising unemployment. Development of tourism and industrialisation is extremely important to increase job opportunities and these sectors demand more attention from government. Does state government has succeeded to provide basic facilities and proper industrialist environment to industries?

Our economic policies are still two and half decade old and no work has been done to increase the revenue. In fact no replacement of loan facility has been charted till yet. Does taking increased loans is an indicator of development? Perhaps not. But the extravagance of state government will continue and at last no solution for units working on losses will be left with state government. More than half of government units are running on losses and the cumulative losses of all boards and corporations has reached to Rs. 3167 crore for year 2015-16. The state government needs to formulate a definite policy for public sector units continuously running in losses. The boards and corporation whose rehabilitation is not possible should be closed and welfare of employees working in it should be ensured. The public sector units that are proving white elephants for state government should be privatised. But for that strong political will is needed.

The state government in past has made a request to public to suggest methods of increasing economic resources and bringing down extravagance. The state government in fact has constituted a resource mobilisation committee for that too. The committtee has submitted its report to state government. Here a question can be asked what actions state government has taken on the basis of this report? The state government will have to take serious steps to curb extravagance and unproductive expenditures in future. The state government and higher officials  must have to understand that they are spending public hard earned money on their luxury. Noose must be applied on unproductive expenditures like purchasing new cars, renovating and decorating office and house, misuse of government vehicle etc. The government while shying from announcing populist schemes should concentrate on development of basic infrastructure so that new paths of revenue generation can be explored.

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