Punjab power subsidy at multi-year high, other sops in focus in new budget

Punjab's new budget promises sops that may delay the state's date with fiscal prudence

Punjab’s new budget promises sops as the state struggles to earn enough. It provides 300 free units of electricity, farmer subsidies, allocations to hire more than 26,454 new employees, and regularising contract workers.

An analysis of the budget shows the state has to walk a tightrope between impressing voters and fiscal prudence. Governments usually spend more than they earn. Punjab’s spending seems based on the hope of higher income later.

There are two main ways a government spends its money. One is capital expenditure on building roads, buildings, and other long-term infrastructure. The other is revenue expenditure where the spending