CHANDIGARH : The state government will lose 16% of its t

otal revenue receipts in the coming financial year (2019-20) to fund state’s populist policy of giving free power to consumers from different sections, mainly farm sector.

In Monday’s budget statement by finance minister Manpreet Singh Badal, a whopping ?12,398 crore has been allocated for free power, of which ?8,969 crore will go to the agriculture sector. The government has projected a total revenue receipts at ?78,509 crore.

The government has earmarked ?1,513 crore for giving power at ?5 per unit to the industry, a promise chief minister Capt Amarinder Singh had made before the state polls in 2017.

The free power to run tubewells for farming is causing a hole in the government coffers, but the government can’t afford to withdraw this fearing backlash from farmers.

The government will spend ?1,916 crore on giving free power to SC, BC and non-SC/BPL domestic consumers. Expanding the benefit further, the government has decided to remove cap of annual consumption of 3,000 units for availing free power facility, which means the consumers falling under the category can consume any number of units. Consumers having sanctioned load of more than 1 KW, however, will not be eligible for the benefit.

?582 CRORE FOR DISTRIBUTION UPGRADE

The finance minister announced ?582 crore for upgrading the distribution system in 102 towns having a population of more than 5,000. For this, ?252 crore will come from Centre-sponsored Deen Dyal Upadhay Gram Jyoti Yojana (DDUGJY) and ?330 crore from integrated power distribution scheme.