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India Today
3 days ago
- Business
- India Today
Can Bihar afford Nitish Kumar's free electricity poll promise?
Bihar Chief Minister Nitish Kumar has promised free electricity up to 125 units per month, ahead of Assembly elections. Power subsidies already account for half of the state's growth budget or capital outlay. The state government had earmarked Rs 15,343 crore under the Mukhyamantri Vidyut Upbhogta Sahayta Yojana in it matters: With limited resources, Bihar may struggle to keep such welfare promises without worsening its financial health. The portion of capital outlay is poised to shift towards debt On July 17, Nitish Kumar announced ( ) that the state will offer 125 units of electricity free each month. He also announced plans to install rooftop solar panels for households over the next three years. The move comes ahead of the state elections and shows a growing trend across Indian politics: promising free goods or services to win votes. Freebies aren't new. But their scope is expanding. Delhi offers free power, up to 200 units. Karnataka pays women Rs 2,000 a month. Rajasthan distributed smartphones. Tamil Nadu gave away they cost state governments a fortune. The estimated cost of freebies and subsidies between 2023 and 2024 was around Rs 96,000 crore (2.2 per cent of the GSDP) in Maharashtra and Rs 53,700 crore (1.9 per cent) in Karnataka. In Bihar too, it was around Rs 20,000 crore (2.1 per cent of GSDP).States like Punjab, Jharkhand, and Rajasthan are already facing fiscal stress. In fact, NITI Aayog ranked Punjab last in fiscal health due to heavy picture: The question is not just about policy — it's about affordability. Bihar has a weak tax base and limited borrowing space. With growing welfare bills and falling revenues, can the state afford another guarantee? Around 2–3 per cent of the country's population, mostly urban middle-class citizens, pay income tax and are growing frustrated with the they said: 'We will ensure 125 units of power are free,' Nitish Kumar said. The Reserve Bank of India in its State Finances: A Study of Budgets of 2024-25 report noted that such spending could crowd out the resources available to them and "hamper their capacity to build critical social and economic infrastructure'.- EndsTune InMust Watch
Time of India
4 days ago
- Business
- Time of India
'Swarna Andhra Pradesh': N Chandrababu Naidu unveils $2.4-Trillion vision for 2047
The Andhra Pradesh government should ensure fiscal prudence and transparency in public finance in its journey to realise its Swarna Andhra Pradesh Vision 2047 goals, according to a Taskforce constituted by the State government on the road Swarna Andhra Pradesh 2047 Vision, launched by N Chandrababu Naidu-led NDA government, aims to make the State a $2.4-trillion economy by 2047 with a per capita income of $42,000, growing at a sustained annual growth of 15 per cent in the Gross State Domestic Product (GSDP). Show more Show less
Hindustan Times
5 days ago
- Business
- Hindustan Times
U.P's GSDP reaches ₹29.6-lakh crore clocks 80% increase since 2020-21
: The Uttar Pradesh government on Monday claimed the state was marching ahead on the road to becoming a trillion-dollar economy and the GSDP (Gross State Domestic Product) is estimated to have reached ₹29.6 lakh crore in 2024-25. The chief minister emphasised the need to devise a focused strategy to raise the state's share to 10% by 2026 (Sourced) The state government had earlier indicated that the GSDP would reach ₹27.51 lakh crore by March 31, 2025. An official spokesman said this fact was mentioned to chief minister Yogi Adityanath at a high-level meeting convened to review the state's economy and revenue resources, besides working out measures to achieve the trillion-dollar economy goal. The chief minister described the state's economic journey as a transition from 'possibilities to results.' Those aware of the development said the GSDP's estimates of ₹29.6 lakh crore in 2024-25, indicate an impressive 80% increase since 2020-21. The state's contribution to the national economy has risen from 8.4% to 8.9% during the same period. The chief minister emphasised the need to devise a focused strategy to raise the state's share to 10% by 2026. He noted the growing contribution of the manufacturing and service sectors, while the agriculture sector's share is gradually declining. Reviewing the manufacturing sector, it was reported that the number of registered factories has surpassed 27,000 in 2024-25. A significant rise was also noted in the export of information technology services from the state. In 2024-25, IT exports through the STPI touched ₹46,800 crore, an increase of 40% compared to 2021-22. The meeting also reviewed the state's two key revenue streams—GST and excise duty. Adityanath stressed that financial growth must underpin the expansion of public services and social welfare schemes.
Hans India
7 days ago
- Business
- Hans India
Record development in Northeast due to PM Modi's ‘Act East Policy': Tripura CM Manik Saha
Agartala: Tripura Chief Minister Manik Saha said on Sunday that unprecedented development has already taken place and continues under Prime Minister Narendra Modi's 'Act East Policy'. After laying the foundation and participating in the Bhumi Pujan of 51-Shakti Peethas Park at Banduar in southern Tripura, the Chief Minister said that the Prime Minister has given thrust on the development of tourism as the travel and tourism sector in India currently contributes 7 per cent to the country's GDP. The Chief Minister, accompanied by Finance Minister Pranajit Singha Roy and Tourism and Transport Minister Sushanta Chowdhury and other leaders, on Sunday, laid the foundation stone for an ambitious Rs 97.70 crore project to set up a 51-Shakti Peethas Park at Banduar in southern Tripura to boost spiritual heritage. The CM said that with the financial assistance from the Union Tourism Ministry and Rs 179 crore loan from the Asian Development Bank (ADB), a large number of tourism sites in Tripura are being developed. He said that with the infrastructure development of the tourism sector, a large number of people would get direct and indirect employment opportunities. Saha, who also holds the home portfolio, said that the state government would soon appoint 6,000 Special Executives to deploy them in various sectors, while tourist police would also be deployed in the tourism sites, facilitating the trouble-free visit of the tourists. Noting that in line with the Prime Minister's vision to develop the infrastructure in all sectors, the Chief Minister said that since January this year, he has either inaugurated or laid foundation stones of many projects worth over Rs 771 crore. He said: 'The Prime Minister has given us a HIRA (Highway, Internet, Railways and Airways) model of development. For this, there has been tremendous progress in the state in the fields of national highways, internet, railways, and airways. Along with this, we have to take development forward by utilising our own resources.' Tripura is in the second position in GSDP and per capita income in the northeastern region, the Chief Minister stated. Spread over 15 acres, the 51-Shakti Peethas Park would feature a digital museum, amphitheatre, sky bridge, ample vehicle parking, and one of the tallest statues of Nataraj. Tourism and Transport Minister Sushanta Chowdhury said that replicas of 51 Shakti Peethas would be set up in the proposed park. These 51 Shakti Peethas now exist across Bangladesh, Pakistan, Nepal, Sri Lanka, besides different parts of India.
Time of India
09-07-2025
- Business
- Time of India
From food bowl to debt trap: Study flags Punjab's alarming economic decline
Chandigarh: Flagging the steady decline of Punjab's financial health over three decades —slipping from its Green Revolution-era status as India's top-performing state to a debt-ridden state-- a study has underlined that unless Punjab adopts a comprehensive, development-focused roadmap and overcomes political populism, it risks further economic marginalization. This is the key finding of a comprehensive analysis by economist Professor Ranjit Singh Ghuman of Guru Nanak Dev University, Amritsar. The study, "Walking with the Ups and Downs of Punjab Economy", provides an extensive overview of the state's economic trajectory since its reorganisation in 1966. It revealed that despite early agricultural success, Punjab's failure to diversify its economy—combined with low investment, industrial stagnation, and fiscal mismanagement—pushed the state into a "development ICU." Punjab's economic growth remained above the national average until the mid-1990s. However, it has consistently lagged since 1992. Between 2014–15 and 2022–23, Punjab registered an average annual growth rate of just 4.62% per annum, compared to the national average of 5.67% per annum. Its ranking among major Indian states fell to 19th in agriculture and 14th in non-agriculture growth. Once the top-ranking state in per capita income, Punjab dropped to the 10th position by 2022–23 among 18 major states in the country, overtaken by Gujarat, Karnataka, Telangana, and others. Agriculture, which contributed 57.3% of Punjab's GSDP in 1970–71, now accounts for only 23.22% as of 2022–23. Employment in the sector dropped to 24.6%, and yet Punjab still lacks a formal agricultural policy. The industrial sector showed a similar decline. Between 2007 and 2014, over 18,700 industrial units shut down, with Amritsar alone accounting for 43% of the closures. The study attributes this to outdated technology, lack of financial support, and a policy bias in favour of neighbouring hill states like Himachal Pradesh and Uttarakhand, which received central incentives. Punjab's Gross Domestic Capital Formation (GDCF) as a share of GSDP consistently remained below the national average since 1994–95. In 2022–23 alone, the state recorded an investment deficiency of Rs 84,923 crore. According to the NITI Aayog's 2025 assessment, Punjab ranks last among 18 major states on the Fiscal Health Index. Its outstanding debt surged to Rs 4.17 lakh crore, amounting to 46.8% of the projected GSDP for 2025–26. Alarmingly, over 41% of the state's revenue is spent on debt servicing, and 57.5% is consumed by salaries, pensions, and subsidies, leaving negligible room for developmental spending. Unemployment — especially among youth — is rising at a worrying pace. Over 75% of Punjabi farmers do not want their children to remain in agriculture, but there are no alternative job avenues. The industrial and services sectors have not been able to match the aspirations of the state's educated youth, pushing many towards migration abroad — often through illegal means. The study found that Punjab's employment index ranking fell from 13th in 2005 to 16th in 2022 among 21 states, while youth unemployment rose to 26.33%. Prof Ghuman recommended an urgent, multi-pronged strategy for Punjab's economic revival. This includes rationalising subsidies and freebies, enhancing tax compliance and revenue mobilisation, reviving industrial and agro-processing sectors, investing in human capital through education, health, and skill-building, leveraging trade opportunities through the Wagah-Attari border, formulating a state-level agricultural policy, and promoting crop diversification. BOX Growth Rate Period | GSDP | Investment Deficiency 1994-95 to 1998-99 | 2.14 | 1.91 1999-00 to 2003-04 | 1.46 | 3.50 2004-05 to 2010-11 | 3.12 | 6.89 2011-12 to 2022-23 | 2.14 | 0.76 1994-95 to 2022-23 | 4.57 | 7.94 (In %) MSID:: 122341125 413 |
