Manpreet Singh Badal is the finance minister of Punjab. An alumnus of Doon School and St Stephen's College, he has a law degree from the University of London. Estranged nephew of former chief minister Parkash Singh Badal, the 54-year-old Manpreet is a fivetime legislator, four times as member of the Shiromani Akali Dal (SAD) and once (2017) as a member of the Congress which he joined in 2015. This is his second stint as state finance minister; he served in the same post in the Badal regime in 2007.

In an interview to RANJEET JAMWAL, Manpreet Badal defended the Punjab government's farm loan waiver and expressed confidence about bringing the state’s economy back on track.

Excerpts: 

Q. As per your budget speech, Punjab has a total outstanding debt and contingent liabilities of over Rs.2 lakh crore. Despite this, you went for a loan waiver.

A. Governance is not about managing budgets but about transforming lives. We had an epidemic of suicides in the recent past; therefore it was imperative for us to go for farm loan waiver to rescue farmers. Our aim is to ease (things for) the farmer caught in a debt trap. Moreover, the amount (required for loan waiver) is very little compared to the financial irregularities committed by the former SAD-BJP government which played with the lives of farmers. Loan waiver was part of our manifesto and I am the one who drafted it. Farmers of Punjab have become impoverished and they need to be bailed out with whatever it takes.

Q. Is the loan waiver announced by you enough to rescue Punjab farmers?

A. We have given the loan waiver to 8.75 lakh small and marginal farmers who have taken loans up to Rs.2 lakh. But it can't cover all farmers. Nearly four per cent of farmers owe about 30 per cent of farm loans. Therefore the farm loan waiver would cover only small and marginal farmers. But I believe the debt waiver alone will not help the farmer. The solution lies in a multi-pronged approach. We will have to create employment opportunities for farmers' children and provide them the necessary skills to enable them to stand on their feet.

Q. You have made a provision of Rs.1,500 crore for the loan waiver. How will it cover farm loans of over nearly nine lakh farmers?

A. The provision of Rs.1,500 crore in the budget is enough to make the first installment of farm loans to banks (by the government). We will take over the farm loans and farmers will be free from the burden of debt. We will use this amount to put in the banks for taking over the loans of small and marginal farmers. The amount will then be paid in installments to the banks.

Q. Many farm loans have been taken by farmers from money lenders and commission agents. How will you provide relief to such farmers?

A. A cabinet sub-committee had already been formed to speak to the Aarthiyas (commission agents) and private money lenders to resolve the issue of non-institutional loans. We will sort out this issue by holding district-wise meetings. An assessment of loans given by them to farmers will be done and it will also be assessed how much of it has been paid back by the farmers. Thus we will reconcile the figures.

Q.You have placed high hopes on the Goods and Services Tax (GST) for turnaround of the state’s finances. What is the reason for that?

A. GST will bring an advantage to the state by bringing it at par with other states in terms of tax imposition. Industries have not been coming to Punjab, partly because of taxes, which are the highest. Moreover, Punjab is a consumption-based state and GST will benefit it. The Union government has also assured compensation in case of any revenue loss. The GST regime will be helpful in an increase in our revenue by 14 per cent in the next five years. Therefore, I hope GST will help in improving the state's fiscal health. The tax revenues are likely to double in the next five years. That's why I am looking at GST with great hope and Punjab as a state is fully prepared for it.

Q. You spearheaded the move for a ban on red-beacon lights in the state and it has now been followed in other states as well as at the Centre.Your reaction.

A. It was something long overdue. This VIP syndrome needed to be curbed. That way it has been good riddance. It will be really great if VIPs’ names on foundation stones and inaugural plaques also get prohibited like the red-beacon lights.

Q.You are trying to attract investment in the state. Have you had any success so far?

A. Along with Chief Minister Amarinder Singh, we went to meet top businessmen of the country in Mumbai. And we have received good response. Four big proposals are already on the table which will serve as a catalyst for further investments.

Q. You have proposed to include property returns of all MLAs and bureaucrats on the government website.

A. From 1 January, all MLAs, ministers and bureaucrats will put their assets and liabilities online.