Focus on cutting unnecessary expenses, boosting income

Madhya Pradesh Chief Minister MOHAN YADAV marked the completion of his first year in office last week. In an interview at Madhya Pradesh Bhawan in New Delhi, Yadav, 59, spoke with Archis Mohan and Sanjeeb Mukherjee about his government's initiatives to curb financial profligacy, reduce power subsidies for farmers, and promote industrial growth. Edited excerpts:

- Archis Mohan and Sanjeeb Mukherjee

What, in your view, have been the key achievements of your government during its first year in office?

Our primary focus has been on reforming the state's governance and administrative structures and adopting good governance practices. Moreover, if India is to become the world's third-largest economy, Madhya Pradesh should play a significant role in achieving that goal. This is why we decided early in our current tenure to double the state budget from ₹3.25 trillion to ₹7 trillion over the next five years. We have fixed annual targets to achieve this objective in a phased manner.

A key aspect of the government's efforts has been reducing non-essential expenditure to strengthen the state's income and facilitate holistic growth. I kick-started some of these measures within days of taking the oath, particularly in the power sector. Currently, we provide an annual subsidy of ₹15,000 crore to farmers, which accounts for 93 per cent of their total power consumption. This subsidy burden would have continued to increase if we hadn't intervened. Our aim is to cut it down to zero within three years by offering financial assistance to farmers to install solar pumps. This will enable them to become self-sufficient in meeting their power needs and even sell surplus power to the government.

Our strategy has been two-pronged, addressing both urban consumers and farmers. Together, these groups account for roughly ₹25,000-26,000 crore in annual power subsidies from the state government which we want to end.

Will this imply raising tariffs, as well?

No, No...

Can the slabs be restructured, then?

Yes, that can be part of this process but not now. Maybe some time later.

Has the CM Ladli Behna Yojana, introduced last year, proven to be a burden?