India - Bridging The Gap, and Facing Our Mistakes

It has taken a long time coming, but at long last some central government is at least talking about the right things – Defence, Education and Health. It is a separate matter that they aren’t doing anything about it, hemmed in as they are with issues, expectations and pressures from all sides, and with the attendant demands and needs of a myriad set of sub-groups and institutions that are present in a diverse and multicultural democracy such as India, especially given its income distribution and economic structure.

One of the reasons for this inactivity, or rather inadequate acrivity, is admittedly the lack of funds and the difficulty in generating excess funds, or allocating enough funds, or generating resources internally for the same. There are other issues – I shall deal with these in another article, as they are equally vexatious, dealing with implementation problems and tackling vested interests.

What amazes me is that people in India seriously believe that several hundred highly qualified and intelligent people {As are present in the Government} cant get together, rise above their vested interests and create some fiscal space for Defence, Health and Education expenses, the current demands and pressures notwithstanding. All it requires is a will, a determination, a clear directive, hard decision, and some sacrifice somewhere; in other words, setting the priorities and the direction

The directions of the Government, while speaking rightly, and passionately, in favour of these basics, are clearly towards an urban tilt, with infrastructure thrown in. Is it the contention of the Media, the people as well as the Government that the lot of the balance 80% - the people in the bottom 80% income profile – especially the bottom 40%, will improve by smart cities, IITs, IIMs, Infrastructure investments {which wont get implemented as too many structural hurdles are present. I can myself name 2 or 3 with detailed proof} and Corporate India - focus? 

Fine, Job generation may happen. How will people who are malnourished, and lack a decent education, partake in that job growth? That is a manifest impossibility. How will MNREGA and other social sector expenditure {which is essential, but how much is the question} ensure that the disenfranchised will be able to partake in that growth? That just ensures survival! Don’t these people – Indians like us – have the to grow and have a decent life? Or are we to condemn them to a slow and painful growth? How can they grow, if they do not possess the tools, the education for it, or are not healthy enough?  The result will be richer cities, richer Middle and Above classes - meaning you and me - and next to nothing for the rest of India,  as India continues to give low focus on Defence, Health and Education, and Agriculture. 

These classes - those who stand to benefit, people like you and me - make up less than 10% of India, and even that is a huge exaggeration. And as regards Corporate India, anyone here who thinks Corporate India drives the Indian Economy is advised to study the Indian Economy in detail. The contribution of the unorganized sector far outweighs the corporate sector. The contribution of Corporate India to any economic number is nothing to write home about., be it NDP, Savings, Employment - anything. Corporate India is not in the biggest contributors. 

What we are in effect saying is, the Poor can survive on doles from the Rich, and they have no right to self-development at the same rate as the rest of India. In order that people get greater income, they require better education, easier access to health, and solution to the main problems impacting their lives, not one of which is benefited too much by your IITs and Smart Cities, keeping in mind that a large majority of the people live in rural India, and are employed in agriculture. We are effectively throwing money after the Rich, who dont need it and can afford higher expenses

Next, Defence. What happens {God Forbid}, if we are pushed into a face-off? No less than 2 army chiefs have openly criticized the delays. Please read the works of General VP Malik, who stands as one of the most respected Army Chiefs in Indian History. Look up the leaked letter of yet another highly regarded chief, General VK Singh. A General has even openly stated that "we will fight with what we have". 

Respect, Sir! To the entire Indian Armed Forces. None to the people of India, who are by and large too self-centred to even think of this matter. Respect even to the Government, who are trying to do a near-impossible task, given the scale of challenges, pressures and demands - most genuine and some ingenuine,  they face in other fields - and are yet spending 246000 Crores on the Armed forces, although it requires more. 

Why should the Government do more - when the people themselves dont care to tell them, we can take some more hardship, please focus on the Armed Forces first? The Government takes a hard call; it is not an easy decision to put off these expenses, Pressure distorts perspective, and the pressure is on them from all sides for economic growth jobs etc; and none for the upliftment of the Armed Forces, We are after all a democracy; the government is a mere reflection of the desires of the society.

Question is, can anything be done to find a way out? No easy answers – but yes, a lot can be done. Even a relative layman like myself can find ways, although none are easy. You have given 8% more to the states - you can take it out of that. How the states fund their budgets - perhaps they can look to being more fiscally responsible - like some states in South and East India have already done? Or reduce expenses. Or do any number of other tactics. Alternative, dont do anything. 

And then go on an emergency purchasing binge when a problem occurs, which means you lose your negotiating power, and close deals in a rush at the other party's choice. 

A small example : you are giving crores in support to the Railways or PSUs as a budgetary support. Why? Why not increase rates? You can allocate that expense to the Defense, or to Education {hopefully defense}. Even 67 years after independence, PSUs, Railways {at times even banks} are dependent on the Central Government for support. Far better to tell them no, fund yourselves! Improve internal efficiencies, cut flab, get competitive strength. Tell them generate your own expenses through your own operations; Cut The Umbilical Chord! It is far better to throw them aside, and force them to compete and improve themselves, teaching them to fend for themselves.

Done properly, in a phased manner, with proper planning and thought, this is doable. These are unpopluar measures, but doable. Or reduce the size of your bloated Government- that is pure revenue wastage, given the levels of productivity. I could go on and on for a fairly long period of time.  All such measures are doable, but hard. And this is a majority government. They can pull it off. Let us see if they do... there can be only one reason for their reticence – the lack of numbers in the Rajya Sabha… I know I am clutching at straws, but at least this Government is saying the right words!

The problems related to agriculture are varied, serious and huge, and cannot be taken up as a sub-point; I shall look at these subsequently, as I shall have to look at Agricultural Inputs, Market Access and Legal points etc. Even in that, our current Government does have the right ideas, only the speed of execution is a matter of concern.