With the budget session almost imminent, it is ironic that our politicians are busy calculating equations for the next elections and ignoring the vital importance of constructive contribution to the discussion on issues that should have been their bread and butter. The important issues before the government have always been lost to party politics and the ‘credit game’. In the last seven years, 2003 is the only year in which the number of hours spent in the House on discussing the proposed Budget exceeded the time lost to interruptions. Yet ministers like PR Dasmunsi are mainly concerned about the opposition grabbing the credit for the good budget, if it indeed that. Politicians of his ilk are scared to step out of the box and, for once, take an initiative with only the people in mind.
The Issues
Equi-distribution of wealth – Creation rural employment plan, which guarantees 100 days of work for one person in every poor household, was the priority of the government. The plan was the government's attempt to address some of the countryside's biggest problems - poverty and unemployment. Having already spent some $3bn on this scheme over the last two years, its performance has not met any rural expectations. Obviously the implementation of the scheme was riddled with corruption and has been anything but perfect.
Rising Food Prices - While the middle class is relatively immune to such price rises, for almost half of India's population that lives on less than $2 a day, it is vital for the government to keep prices in check.
Looming Inflation – The inflation for the year was recorded at 4.35%, because of rising prices of fruits, vegetables and lentils. The price of wheat has almost doubled. The real challenge for the government would be to try and curb inflation even though it means putting the brakes on India's growth story.
Encouragement to Entrepreneurs – India’s hi-tech start-ups are a place where angels fear to tread. The government can be the initial risk-taker and step in to fill that gap, at least until they are big enough to attract outside funding. The funding gap has arisen because hi-tech entrepreneurship is a relatively new phenomenon in India. In this context, Wipro chairman Azim Premji’s statement that “it would be years before India could come up with a global gadget like the iPod, because it has been so focused on ‘low hanging fruit’, and developing services rather than products” is relevant.
The Issues
Equi-distribution of wealth – Creation rural employment plan, which guarantees 100 days of work for one person in every poor household, was the priority of the government. The plan was the government's attempt to address some of the countryside's biggest problems - poverty and unemployment. Having already spent some $3bn on this scheme over the last two years, its performance has not met any rural expectations. Obviously the implementation of the scheme was riddled with corruption and has been anything but perfect.
Rising Food Prices - While the middle class is relatively immune to such price rises, for almost half of India's population that lives on less than $2 a day, it is vital for the government to keep prices in check.
Looming Inflation – The inflation for the year was recorded at 4.35%, because of rising prices of fruits, vegetables and lentils. The price of wheat has almost doubled. The real challenge for the government would be to try and curb inflation even though it means putting the brakes on India's growth story.
Encouragement to Entrepreneurs – India’s hi-tech start-ups are a place where angels fear to tread. The government can be the initial risk-taker and step in to fill that gap, at least until they are big enough to attract outside funding. The funding gap has arisen because hi-tech entrepreneurship is a relatively new phenomenon in India. In this context, Wipro chairman Azim Premji’s statement that “it would be years before India could come up with a global gadget like the iPod, because it has been so focused on ‘low hanging fruit’, and developing services rather than products” is relevant.
Rising Naxal Menace - With naxal menace spreading from Orissa, Bihar, Andhra Pradesh to Chattisgarh, it is high time the government allocated resourcses to tackle the desease on priority.
The Courts - The condition of our courts and resultant lack of effective justice delivery system is in shambles. The legal infrastructure must be developed and vacancies of judges must be filled up to avoid incidents of people taking the law into their own hands and dispensating what they consider is justice. The issue does need to be addressed on a war footing.
Law and Order Situation - The law and order situation is a matter of grave concern, especially in states like Bihar and Uttar Pradesh; claims to the contrary by local politicians not withstanding. The problem, if ignored at this stage, is only likely to turn ugly.
· Be first in line to buy and test new ideas.
· Give tax breaks to investors who back new startup companies.
· Simplify the paperwork for small firms.
Conclusion
Unfortunately, none of these offer a rapid solution to a government that will be heading to the polls next year. With politicians worried about the credit for any work done, it is unlikely they would have the wisdom or the patience to do much about it. As it is, Lok Sabha in recent years has spent less and less time discussing the Budget. As a result an overwhelming majority of the government’s expenditure plans have been passed by Lok Sabha with no discussion on them in the House. Given that the demands for grants now total in the region of Rs 18, 00,000 crore a year, an enormous amount of expenditure being sanctioned without adequate legislative scrutiny amounts to abuse of voters’ confidence in their elected representatives. The Times of India’s heading ‘Who cares about the Budget’ is apt; certainly the people elected to care about such matters have more vested occupations in mind
Unfortunately, none of these offer a rapid solution to a government that will be heading to the polls next year. With politicians worried about the credit for any work done, it is unlikely they would have the wisdom or the patience to do much about it. As it is, Lok Sabha in recent years has spent less and less time discussing the Budget. As a result an overwhelming majority of the government’s expenditure plans have been passed by Lok Sabha with no discussion on them in the House. Given that the demands for grants now total in the region of Rs 18, 00,000 crore a year, an enormous amount of expenditure being sanctioned without adequate legislative scrutiny amounts to abuse of voters’ confidence in their elected representatives. The Times of India’s heading ‘Who cares about the Budget’ is apt; certainly the people elected to care about such matters have more vested occupations in mind
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