Union Minister RK Singh issues stern caution to states over the practice of offering complimentary electricity to citizens, citing concerns about rising debt levels. Singh specifically references Punjab, which acquires electricity through loans to distribute it at no charge. While acknowledging the popularity of such schemes, Singh emphasizes the substantial financial burden they entail, potentially exacerbating states’ indebtedness.
Singh’s warning reflects growing apprehension within the central government regarding the fiscal responsibility of states, particularly those funding electricity subsidies through borrowing. His remarks primarily target states like Punjab and indirectly allude to Karnataka, known for their initiatives to provide complimentary electricity to residents.
Singh stresses the importance of states ensuring sufficient financial resources to cover the expenses of free electricity schemes. He warns against reliance on loans to finance such initiatives, cautioning that this could worsen existing debt burdens and perpetuate financial instability. The minister urges policymakers to exercise prudence in fiscal decisions amid concerns about the sustainability of welfare programs and subsidies in state economies.
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