WELFARE WITHOUT FISCAL BURDEN: DESIGNING MARKET-BASED PUBLIC INSTITUTIONS IN DEVELOPING ECONOMIES

Abstract

This study investigates how public welfare institutions in developing economies can deliver essential services without recurring fiscal dependency. Focusing on the Punjab Sahulat Bazaars Authority (PSBA) as a pioneering example, the paper analyzes the transition from a subsidy-reliant Section 42 company to a self-sustaining statutory authority under the Punjab Sahulat Bazaars Authority Act, 2025. Drawing on financial audits, policy documents, and operational data, the study examines PSBA’s use of market mechanisms including regulated vendor fees, bulk procurement, digital platforms, and solar infrastructure to offer essential commodities at 35% below market prices. Operating 105 bazaars across 25 districts, PSBA generates over Rs. 50 million monthly in self-financed revenue while supporting 126,000 individuals through direct employment. The findings demonstrate that public welfare can be achieved through financially disciplined, scalable models. PSBA’s structure presents a replicable template for countries seeking to reform welfare delivery without imposing unsustainable budgetary burdens on the state.