On May 26, 2015, Modi – government completes one year in office. Naturally, it is time to review and reflect on the pluses and minuses; on what it did and what it did not.
But for die hard critics, those wearing coloured glasses and determined to see only negatives, all others viewing happenings from an objective and un-biased mindset will only be able to see positives as this is all that the present dispensation – led by a charismatic leader Modiji – has put on the plate of 1.25 billion people of India.
Poor catapulted to center stage
For the common man, the poor and the poorest among them, there is a lot to feel relieved and rejoice as the deliverables viz., lower inflation, revival of growth, better job prospects, social security cover, financial inclusion, improved basic services etc have all come from a prime minister who in less than 3 months of taking charge declared on Independence Day that he was the “Pradhan Sewak” – principal servant!
One can imagine the man at the helm who declares to the whole world that he is the “Pradhan Sewak” , how he would be thinking, shaping ideas, nurturing his philosophy and implementing policies and programs. And, while doing all this if he treats the 1.25 billion people especially the millions of poor, as his boss, what would be the outcome?
True to commitments he made in the election campaign, during the last 365 days of governance, every moment he has kept the common man and the poor at the forefront believing that country’s resources belong to them and must be used for improving their quality of life. Indeed, he has relentlessly worked for it.
A government free from corruption
Having seen the brazen manner in which resources were mis-appropriated/embezzled under a decade of UPA dispensation [Amit Shah, President, BJP puts the figure at Rs 1200,000 crores or US$ 200 billion] and given his own persona of an honest and man of integrity, the most important pledge he took was “Naa khaunga, naa khane doonga” i.e. “neither I will take bribe nor let others take”. And, he has delivered on this.
The last one year of Modi – dispensation has been absolutely free from corruption at the highest level in the political establishment and bureaucracy. Unlike the UPA regime which was full of scams, this government is not afflicted by a single scam, not even an allegation of corruption. A recent survey of India Incorporated also corroborates this overwhelming perception. He has done it following a two-pronged strategy.
First, Modiji implanted fear both in the political class and officials that any act of corruption shall be severely punished [recently, government approved amendments to anti-corruption law (1988) to plug loopholes besides enacting a law to curb black money stashed abroad in safe heavens]. Second, he has made the entire decision making process ‘policy driven’ leaving no scope whatsoever for discretion, arbitrariness and subjectivity. Combined with ‘transparency’ and ‘accountability’ in actions – the other two hallmarks of present dispensation, this government has successfully managed to garner hundreds of thousands of crores from very industrialists/businessmen whom UPA’s top brass had bequeathed natural resources literally for a song.
Natural resources taken back from freeloaders
Thus, it conducted auction of around 30 coal mines in an open and transparent manner based on clearly laid guidelines and criteria to collect Rs 200,000 crores from allot tees in steel and cement sectors and a further benefit of Rs 100,000 crores by way of reduction in electricity rates from those in power sector. It got another Rs 100,000 crores from auction of spectrum. In the near future, the government will auction remaining 170 mines or so – out of 204 cancelled by Supreme Court (SC) in September, 2014. According to coal ministry, auction of all cancelled mines will yield around Rs 1500,000 crores (US$ 250 billion) over 30 years . The money will be given to the states – most of them backward – where mines are located and will be used for their development and welfare schemes for poor.
Further, by amending the Mines and Minerals (Development & Regulation) Act (1957) to mandatorily provide for auction of all minerals by states, this government has laid the foundation for elimination of discretion and associated corrupt practices. The money that would have otherwise led to unjust enrichment of a few will now be available for common man.
Leakages from welfare schemes plugged
Under UPA regime, a big slice of funds meant for poor under welfare schemes such as National Food Security Act (NFSA)/Targeted public distribution system (TPDS), Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), subsidy on LPG and kerosene etc was never reaching the beneficiaries. Modi – government has worked tirelessly to plug these leakages.
About 25% of subsidized LPG cylinders and 30-40% of subsidized kerosene were diverted for commercial use. Modi – government resurrected direct benefit transfer (DBT) of LPG subsidy – earlier abandoned by UPA in January 2014 – to cover all 676 districts in the country. With this, leakage has been completely eliminated saving the exchequer over Rs 10,000 crores annually. It is also readying to implement DBT for kerosene which will save another Rs 10,000 crores annually.
From next year, the government has plans to bring food and fertilizer subsidy within the ambit of DBT. Considering outlay of Rs 130,000 crores on food subsidy and 40% leakage, it can save over Rs 50,000 crores per annum. Likewise, saving of about Rs 30,000 crores should be possible in fertilizer subsidy. A total saving of around Rs 100,000 crores (US$ 17 billion) annually simply by destroying the cult of freeloaders siphoning off funds from LPG, kerosene, food and fertilizers subsidy can be fruitfully deployed for irrigation, soil conservation, building roads, warehouses etc thereby helping millions of farmers raise crop yield and income from sale of agricultural produce.
MGNREGA – a flagship program of UPA started in 2005 which by now would have guzzled around Rs 300,000 crores (US$ 50 billion) of tax payers money, too was riddled with flagrant misuse and leakages. Modi – government has restructured the scheme linking this to asset creation in rural areas like building roads, toilets etc. This will open up sustainable job opportunities for poor.
A weak prime minister and multiple power centres in the government had led to “policy paralysis” and approvals getting delayed. Hundreds of projects got stuck in ministry of environment and forest (MOEF), courtesy so called ‘Jayanti tax’ [a nick name for bribe amount taken to grant approval]. Modi – government has cleaned up the mess and all approvals are granted – mostly through e-mode – without promoters having to even visit ministries/departments.
A decisive government back in action
An assertive and decisive Modiji has resurrected authority of prime minister extricating country from protracted policy logjam. This government has a clear vision and is taking decisions in a fast track mode and has pushed through a number of reform steps viz., increasing foreign direct investment (FDI) limit in insurance, permitting FDI in defence and railways etc. All this has rejuvenated interest in India which until last year was pushed by foreign investors to the margin.
The government scorecard on all economic indicators viz., fiscal deficit, revenue deficit, inflation, GDP growth, current account deficit (CAD), foreign exchange reserve etc is excellent. The international rating agencies such as Standards & Poor, Moody which had downgraded India to a near junk status have now substantially improved their assessment. Even IMF exudes confidence that Indian growth during 2015-16 and 2016-17 will surpass that of China.
Modiji has got his eyes focused on the long-term laying the foundations for sustained rapid growth in the next 10-15 years. To make it happen, while on one hand he has taken up big initiatives like “Make in India”, “Skill India” and “Digital India’ on the other he is giving concerted attention to building infrastructure especially roads & highways, rails, port, power, oil & gas etc. Dedicated efforts are being made to unclog hundreds of projects in these areas that were stuck for years, in some cases for decades.
Financial inclusion and empowerment of poor
Modiji believes in empowering the poor (unlike Congress which for generations made them survive on doles). The unprecedented success of Prime Minister’s Jan Dhan Yojna stands vivid testimony to his commitment to ‘financial inclusion’. In just about 8 months, 140 million accounts were opened and millions of poor have deposited Rs 15,500 crores in these accounts. Vide PMJDY, he has brought the poor in the economic mainstream providing them a safe avenue for not just putting their own money but also receive in those accounts financial support/subsidy from the state the entire amount reaching in full without any pilferage.
By striving to catapult India to a manufacturing hub by 2025, creating jobs for 10 million youth entering job market every year, building a dwelling unit for every household by 2022, creating job opportunities for millions of landless workers in rural India and helping farmers increase their income – both on-farm and off-farm – Modi – government is laying the ground work for empowering the common man and millions of poor to become economically independent.
Even amendments to Land Acquisition Act (2013) are intended to help this process by expediting land acquisition even while paying good compensation to owners, adequate rehabilitation and resettlement provisions and provision for job for a person of affected family [contrary to mis-information being spread by vested interest who do not want Modi’s development agenda to succeed, these amendments are pro-farmer, pro-landless and pro-poor ]. He needs overwhelming public support to ensure that these are passed by parliament in the ensuing monsoon session.
Future of 1.25 billion Indians in safe hands
In short, Modi – government in its first year, has put in place a basic structure of what will be the foundation for sustainable high growth to improve welfare of 1.25 billion people of India. All [except die hard critics or those who looted country in the past or those who pitched their expectations too high] will have a good reason to comfort that they have put their future in safe hands.