In her maiden budget presented on July 5, 2019, the union finance minister, Nirmala Sitharaman has set an ambitious target of Rs 105,000 crore as proceeds of disinvestment of government shares in public sector undertakings [PSUs] [this is even higher than about Rs 100,000 crore it had garnered during 2017-18]. She has also hinted at aggressive pursuit of ‘strategic’ disinvestment and even consider reducing governments’ shareholding in PSUs to below 51% on a case-by-case basis. A target of realizing 1/3rd of the proceeds from this route has been set. Over Rs 35,000 crore, the government is contemplating to garner from the ‘strategic’ disinvestment includes proceeds from divestment of Air India which according to the secretary, department of investment and public asset management...
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Category: Governance reforms
Some merit in ‘one poll’ idea
Both the Centre and States should focus on governance for a full five years without any distraction and implement structural reforms for sustainable development besides saving tens of thousands of crores in election expenses. Let’s at least debate the idea The Prime Minister’s idea of “one nation, one election” is being staunchly opposed by many political parties, mainly on the grounds of it being undemocratic and an assault on the federal polity and, hence, unconstitutional. Opposition parties have argued that in the case of simultaneous poll to both Parliament and State Assemblies, national issues will dominate over State-specific subjects. This may yield fortuitous benefit to the dominant national party as the voter won’t be able to clearly articulate his/her choice...
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‘One Nation, One Election’ – brooks no delay
The idea of ‘One Nation, One Election’ mooted by the Prime Minister, N Modi is being staunchly opposed by a big section of the political class even before the deliberations are kicked off [a meeting convened by the government on June 19, 2019 was boycotted by about 50% of the parties who were invited]. A major ground for their opposition is that this will be an onslaught on the federal polity. The critics opine that in a scenario of simultaneous poll to both the parliament and all the state assemblies, the national issues will dominate over the state specific subjects. This may yield fortuitous benefit to the dominant national party as the voter won’t be able to clearly articulate his/her...
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Subsidies – the roll-over syndrome
Modi – government has improved substantially over previous dispensations in terms of increasing administrative efficiency, transparency, accountability, reducing bureaucratic red-tape, expediting approvals, enhanced/effective delivery of public services and reaching out subsidies to the needy and poor without leakage. It has also brought about reforms in many areas such as foreign direct investment, infrastructure, defense etc. However, one area where even Modi has not acted differently is the unsustainable high subsidies on fertilizers, fuel and food and roll-over of a big slice of these subsidies year-after-year. During 2019-20, the pay-out on fertilizer subsidy is estimated to be Rs 80,000 crore plus Rs 32,000 crore as roll-over from the previous year taking the total to Rs 112,000 crore. In the interim budget...
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Imperatives for a new India
Now that the BJP Government has received mandate for another term, will it will play hard ball and bring the much-needed reforms in crucial sectors? During his first term (2014-19), Prime Minister Modi focussed on governance reforms, cutting bureaucratic red tape, simplifying procedures, expediting approvals and ease of doing business. The Government also spent its energy on effective implementation of welfare schemes, thus ensuring that assistance reaches the beneficiaries in full vide the Direct Benefit transfer (DBT). Now that the public has given him a resounding mandate to rule for another term, he should crack the whip on long-pending reforms. The key sectors crying for immediate attention include food and fertilisers, oil, gas, power, irrigation, credit to name a few. At present,...
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Economic reforms – will Modi play the hard ball now?
During his first term [2014-19], Modi had focused on governance reforms, cutting bureaucratic red tape, simplifying procedures, expediting approvals and improving the ease of doing business. The government also spent its energy on effective implementation of welfare schemes ensuring that the assistance reaches the beneficiaries in full vide the direct benefit transfer [DBT] to their bank accounts using the JAM [Jan Dhan – Aadhaar – Mobile] platform. Now, that the public has given him a resounding mandate to rule for another term in the just concluded general elections, he should use the opportunity to crack the whip on long pending reforms. The key sectors crying for immediate attention including food, fertilizers, oil, gas, power, irrigation, credit etc. At present, all...
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Crossing environment hurdle under Modi era
On May 7, 2019, the ministry of environment and forest [MoEF] released a compilation of official documents on environment impact assessment [EIA] related issues. It encapsulates crucial notifications or office memoranda on the guidelines/procedures for environmental clearance for projects across industrial sectors. The compilation covers the period between December 2014 and January 2019 under the present dispensation led by prime minister, N Modi. The document looks mundane but is a window to see through momentous changes which have helped transform the economic landscape of India and have been greatly instrumental in putting the economy on to a high growth trajectory. To get an idea as to how, let us take a look at some of the key changes. On March...
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‘Dole-deal’ versus ‘fair deal’
Addressing the India Today Conclave on March 3, 2019, prime minister, N Modi lambasted the erstwhile UPA – dispensation as a regime that believed in ‘doles’ and ‘deals’ whereas his government believes in ‘empowerment’ and ‘fair deal’. Elaborating on the charge, he opined that under Congress – led/supported governments in the past, even as little was done to empower the poor and augment their incomes, there was proliferation of doles – an acronym for subsidy or any other form of state support – financial or non-financial. A major slice of these doles never reached the intended beneficiaries [as the then, prime minister, Rajiv Gandhi opined ‘of the Rupee 1 that leaves Delhi, 85 paise disappears on the way’]. Moreover, the...
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Ram Janambhoomi imbroglio – top court has not covered itself with glory
In the contentious Ram Janam Bhoomi – Babri Masjid case which involves the ownership of the ‘disputed structure’ in Ayodhya [Uttar Pradesh], the Allahabad High Court [AHC] in 2010 had held that the dispute structure/site was actually the birth place of Lord Ram – the God widely worshipped by the Hindu community. A bunch of petitions were filed in the Supreme Court [SC] challenging the order. Since then, the matter has been pending in SC for close to a decade now. Prior to 2010, the issue had been lingering for over six decades involving judicial proceedings at various levels. The protracted delay in resolution of the dispute has prompted Hindu organizations viz. Rashtriya Swayamsevak Sangh [RSS], Vishwa Hindu Parishad [VHP] ...
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Black money – the myth around ‘fifteen lakh’
Ever since Modi took charge in May 2014, the opposition parties have been incessantly lambasting him for failing to redeem his promise [as they perceive it] of bringing the black money held by Indians in tax haven jurisdictions abroad and depositing Rs 15 lakh in the account of each citizen. Now, with general elections a few months away, the intensity of their missives has increased manifold. The idea of every Indian getting Rs 15 lakh [for an overwhelming majority this is a mammoth amount] sounds like day dreaming. It is monumental absurdity. With so much money in his/her account, interest income @ 8% on this will be Rs 10,000/- per month. With a regular source of income assured [albeit without...
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