I closed my
previous article with these words :
"What we
are in effect saying is, Corporate India, Middle Classes can reap immediate
benefit, while making no efforts to tackle the real problems beings faced by
Rural India, like reducing middlemen, education, etc. This is a majority
government, they can easily take hard decisions. And yet they are not doing so
- as I had foretold much earlier. And that is what makes this budget completely
unimpressive, and very UPA 3-ish. "
Given below are the
problems that I consider to be the real problems that impact us as a nation,
encapsulated in very short :
A) DEFENCE :
Dramatic increase in budgetary allocation to defence. The plain and sad fact is
that The Indian Armed Forces are in dire need of funds infusion; we need
Fighter Aircraft : Medium Role Combat Aircraft in particular; we need Artillery
Guns to replace the ageing bofors; we need munitions; We need urgent infusion of
Naval Craft in several categories and so on and so forth. We further need to
the Eastern Army corps that is being planned as a defence against China. The
status of the Armed Forces has been extensively documented in the books by Gen
Malik, in Gen VK Singh's leaked letter, and in numerous articles in newspapers
and magazines
B) EDUCATION :
Major focus on Primary and Secondary Education, not higher education. India
does not need any further higher educations institutions as yet; what it needs
are the refurbishment of existing facilities, and major fund infusion in Rural
India especially. In terms of budgetary allocation, we are among the lowest -
which is sad for a developing country.
C) HEALTH : A clear
definable plan to counter malnutrition, and fund infusion in the Rural Health
Sector, encompassing PHCs, Taluka, Tehsil and District HQ hospitals in terms of
staff, medicines as well as facilities. We need an increase in budgetary
allocation to bankroll this
D) RURAL INDIA /
AGRICULTURE : A clear shift in focus from Urban to Rural India in terms of
infrastructure : easier access to nearest agricultural mandis, markets, rural
facilities like digitisation of land and revenue records, connectivity of the
village with the local district and state capitals, making it feasible for the
farmer to sell his produce directly ensuring better price to him, amending APMC
etc related acts and so on and so forth. What is required is a clear focus on
forgetting Urban India for now, and focussing on Rural India; with the benefits
from the above, Urban India stands to gain automatically given the productivity
enhancements. This requires budgetary allocation of funds, and a workable plan
for the same - and a clear implementation focus.
E) SUBSIDIES :
Tackle wasteful subsidies. On Agriculture, streamline subisidy; remove undue
focus on Nitrogen, and develop a more equitable and more logical subsidy plan.
I do not recommend cutting back on Subsidies in this sector; farmers cannot
afford it. That is a fact. What is needed is a rebalancing. This is a
structural component, and cannot be so easily altered. Reduce subsidy even
further on petroleum products for all IT payers; they can afford higher cost of
petrol. The farms cannot. Alternatively, remove petroleum subsidy altogether;
develop cash reimbursement through Aadhar for the poor and the rural
sector.
F) RAILWAYS :
Increase fares across the board, period. Invest proceeds on modernisation and
increased security. Stop cross-subsidisation of passenger with freight; be
logical, consistent and transparent.
G) EXPENDITURE :
Curtail wasteful expenditure, and all non-productive expenditure; period. No
explanation required, no justification need be given. It is our money you are
spending. This does not include expenditure on social imperatives, and support
causes, without which we may have a human tragedy, Those expenses are a
priority; here I refer to Governmental expenses, making the states accountable,
cutting back on wasteful non-productive freebies etc.
This, in the order
of priority, is what the nation requires. What I am a-b-s-o-l-u-t-e-l-y shocked
is that few people thought of defence. Boss, they defend our lives, and their
problems are serious! It is a shocker that no one - not one person here thought
of the needs of the defence of India! And their needs have been documented by
several authentic people, and in detail. Shame on you, India. Shame!
Now look at
education. You first shout to all and then some - education is the focus, we
need a school every so-and-so Kms... And then dont budget for it. And
on top of it all, in a classic mark of crass stupidity, increase allocation to
states - without ensuring a mechanism for extracting value of this
excess fund flow to the states, quite a few of whom are known for fiscal
profligacy of the worst kind. And then, you expect the states to implement what
is in essence a centrally thought plan. While the plan to devolve to states is
laudable, there is a dire need to pull up recalcitrant state governments.
Interested people can go through this report : State
Finances - RBI Report
What has been done
to ensure buy-in by stakeholders at the state level? What has been done to
improve efficiency of monetary utilization in the states, and ensure that the
excess funds dont get spent in idiotic schemes, for which quite a few of our
states are famous? If the states were so efficient, they would have already
improved on-ground governance, which they havent. One look at state budgets is
enough. What mechanism has been implemented - or is being planned to be
implemented - to ensure that the states' budgetary health improves, and that
real value for money spent is obtained? This is what I expect a good PM to do,
a good central government to do!
The budget document
is also a strategy document, it reveals your real priorities. If you are not putting
your money where your mouth is, it clearly raises the suspicion that you are
insincere in your words, or you have no idea what you are doing - or you have
compromised. And dont have the guts to say so openly. And that is precisely
what this Government's actions in totality are stating to me as a worried and
concerned citizen. I am already on record accepting that this is the best
Government we have had in a long time - and if this is the best we can do, we
had better get seriously worried!
Why the hell do we
need more Engineering Colleges? That too IITs? And more management colleges? So
that they can run away from India, rather than help solve the problems? And
that too in a scenario where thousands of Engineering graduates,
management graduates and other graduates are running around from pillar to post
jobless? That is being smart? The definition of smart has certainly changed, if
that is the case. Why not upgrade existing colleges from D and C
category?
You know why not? Because
it is hard to do. Because you will have to roll up your sleeves and
really work! Because you will have to challenge vote banks; vested interests;
etc. I feel jilted! I had high hopes from the BJP. I feel jilted! They are
doing exactly what the Congress did - NOTHING!
Next, defence.
"Already, more than 90 per cent of the defence capital allocation is
pre-committed towards instalments for purchases made during previous years.
While the exact figures would become clear only after March 31, it is already
evident that no more than Rs 8,000-9,000 crore of the Rs 94,588 crore capital
Budget for 2015-16 would be available for new purchases. A few percentage
points of army revenue overspend (it overspent 5.5 per cent this year) would
whittle that down to zero."
This is a brutal
shocker - the nation's armed forces are in dire need to refurbishment, and the
best you can do is this? Add to that the zero action on health and education :
the conclusion is inescapable : the priorities are wrong. The Government is
wrong on this, demonstrably so.
The needs of
Agriculture which have gone unattended for many years, have again been
postponed. Agriculture needs subsidy rebalancing - not done. Ideal ratio -
4-2-1. Indian ratio - 6.5-2-1. QED. Largely due to the Subsidy imbalance. Why
wasnt this attended to?
Next, APMC act. How
do you intend to ensure that the farmer gets the right price- the government
states it want to do this - without dismantling the credit scenario-mandi power
and giving free market access etc? {This is not just a budget issue, but also a
governance one} Why hasnt this been done? This isnt a good government, sorry. I
feel jilted. And I can do a similar analysis for Health, Education etc. I feel
jilted.
And we, the middle
classes, we are all jumping for joy as rates were not increased in Rail
budget. We travel with family once or twice a year, and earn Several Hundred
Thousand every annum. Total additional expense to us taking 2 trips for 4, and
a {huge} 15% rise : 2000 Rs.
Wow man, WE middle
class can go bankrupt if we have to shell out 2000 Rupees extra. F-A-N-T-A-S-T-I-C!
Keep it up!
What is required is
a sense of balance : while the needs of growth and business are real, and vital
– they will, after all, generate the
profits and the employment to solve our poverty problem – the needs of the
people are also equally important, so that they are in a position to partake in
the economic development in the form of an educated and healthy people of
India. I am worried since this is a good government we have; but whose
direction is as wrong as the previous ones!
India isn’t about
the Middle and above classes alone; it is equally about the other 80-plus
percent. What we are currently doing tantamount to giving them freebies, and
alms, and not developing them so that they can stand on their feet. What they
need is the ability of stand on their feet, and assistance in the form of support
programs till the time they do. That is a fact – and the sooner India realizes this,
the better for all of us.
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