Finance
Minister, Jaswant Singh, has more or less let the cat out of the bag
in respect of the major focus of Budget 2003-04. Procedural reform is
the mantra to be followed. New imposts? With the ruling Bharatiya
Janata Party in the throes of the worst-ever bout of internal dissent
and external pressure and with just two-and-a- half BJP ruled States
in its kitty? Perish the thought!
Jaswant Singh may be new to the Finance Ministry
but he has already learnt all the jargon and bromides that precede a
budget. Thus, he says he will give topmost priority to push growth and
contain the fiscal deficit. No surprises there; this has been the
theme song for the last five budgets but the targets have never been
achieved in these areas. Once the budget is put to bed (approved by
Parliament) all the good intentions and promises of fiscal discipline
are forgotten and the Government continues on its profligate path.
Does anybody seriously believe that a ruling party, at the lowest ebb
of its popularity and holding grave doubts of retaining its position
at the Centre, will give two hoots for any fiscal measure that cannot
produce results in its favour within the remaining two years of its
rule? And what can bring in short term results except populist
measures.
Jaswant Singh continues with his bromide-laden
promises: "We are very clear in our mind we must enhance production,
increase GDP, put more money in citizens’ pockets and housewives
purses…Growth through reforms is Government’s priority." And all this
is to be achieved not by strict control on non-Plan and administrative
expenditure but by pushing reforms. The recent Government decision not
to put on hold payment of dearness allowance increments and bonus to
its massive staff is a clear indication that, till the next elections
at least, populist measures will rule.
So, all right, one may argue, let’s accept the
political imperative, but at least reforms will get a push. Yes, there
will certainly be people-friendly reforms. Jaswant Singh has said as
much. Tax refunds and tax deduction at source will be streamlined.
Enforcement and penalties will give way to voluntary compliance. The
capital market will be revived by removing its weaknesses and its bias
towards the corporate and institutional investor may be reduced
somewhat in favour of the retail investor. But these are not reforms
in the real sense; they are all necessary attributes to an efficient,
people-centric administration. Reforms consist of statutory limits on
spending and borrowing, making it clear to ministers that their job is
to minister their portfolios, not interfere in general governance,
ensuring that the bureaucrats genuinely work for the public good and
not just build administrative empires and feather their own nests. All
these measures, and much more, have been mooted time and again by
finance ministers, economists and others. Not one of them has been
implemented.
And, whatever Jaswant Singh’s good intentions, how
can he fight against powerful ministers (belonging to coalition
partners whose support is essential to keeping the government in
power) when even the Prime Minister is unable to push through the
disinvestment agenda to which he is committed against the wishes of
some of his ministers? The question is not whether disinvestment is
good or bad; it is whether ministers can be allowed to pursue their
own agendas to the detriment of the stated policies of the Government.
However, there is one area where Jaswant Singh has
made a proposal that can probably be implemented and bring much needed
credibility to the Government’s policy measures. He has declared that,
unlike in the past, the budget exercise would be fully transparent
except, of course, for a few strategic areas. Recommendations of the
task forces, he said, would be put on the Internet for public debate.
Implied in what he says is that the Government, unless it has
forceful, declared reasons not to do so, will follow the
recommendations of the task forces and not the ideological whims and
self-aggrandisement programmes of its ministers or specific interest
groups which have extremely powerful lobbies. But we will have to wait
and see whether even this small consideration of the public’s status
as the sector that ultimately pays for all the Government’s decisions
will see the light of day. Our ministers prefer to work in an
environment of secrecy and ‘national interest’; they do not like to be
pulled up by anyone, even the people who elected them to office in the
first place. Actors, professors, sanyasins, dedicated ideologists can
all become ministers, and once they do so, they know best what’s good
for the nation. No arguments, please.
In the end, it should be remembered that today the
BJP and its coalition government is in the limelight. Had it been any
other party ruling at the Centre, the Congress, the BSP or even the
Left, the situation would have been the same. Look at the record of
these parties in the States they control and then try and imagine to
what extent they would go given unbridled power at the Centre.