By Dr Dharinder Tayal
The financial year 2024-25 has begun with a bang. A bang of economies going kaput. Think big. Corporate bankruptcies are passé. Now it is entire states that are staring down the barrel, as they scrounge the bottoms of their financial barrels.
The malaise that started from Karnataka has travelled to Punjab via Himachal. The government employees in Karnataka had to arm twist the government for implementation of the recommendations of the 7th Pay Commission. The government employees’ salaries and pensions in Himachal were delayed, probably for the first time in its history. Punjab was forced to increase the VAT on petrol and diesel, raising it by 61 paisa per litre on petrol and 92 paisa per litre on diesel. Punjab government also decided to revoke the ₹3 per unit electricity subsidy for consumers upto 7KW besides increasing bus fares by 23 paisa per kilometre.
The bureaucracy in all these states has candidly informed their political masters that the root of the ailment lies in the ‘freebie’ carrots that were dangled before the electorate as guarantees. Now the chickens have come home to roost. Well fed with every passing election the ‘revdi rakshas’ has bloomed into a full grown Frankenstein monster that is threating the very existence of these governments, which not incidentally, but by the dint of their karma, are opposition ruled. Karnataka and Himachal by Indian National Congress and Punjab by their national love but estranged in the state partner, Aam Aadmi Party.
Admittedly, the boundaries between ‘freebies’ and legitimate welfare state functions are hazy. The opposition leaders, particularly of these states are quick to state that even BJP has been giving out doles. True. But, is Free Covid Vaccine to the country ‘revdi’ or welfare? If PMGKAY ensures that no Indian sleeps hungry, is that a freebie or welfare? 10 crore families getting freedom burning firewood, women in 11 crore families not suffering humiliation for a basic biological function or 4 crore homeless getting shelter, revdi or welfare? Each of us can decide for ourselves. One important yardstick, however, is the ability to support the scheme. I should not be buying a Mercedes for my son by cutting down the treatment cost of my mother. This is what Himachal has done. Budget outlay for Nutrition, Health and Family Welfare have all been cut to support reckless schemes announced for petty political gains. Narendra Modi government is spending 11.8 lakh crores on PMGKAY alone, but with its financial prudence is ensuring that we are a Capex led economy with a falling fiscal deficit. Virtually all international agencies are, with an amazing regularity, upgrading India’s economic outlook.
The second important aspect here is to think through the financial implications of the scheme being offered, rather than banking on your impending defeat and hence not having to honour the promise. Case in a point is the ‘khatkhat’ scheme of Congress guarantying rupees one lakh per year for every family. India has about 32 crore households. About 2 crore Indians pay Income Tax. Let us, wrongly, assume them to be one per household. Will a lakh of rupees be paid to 30 crore households? Given that the revenue receipt of India is 32 lakh crores, if 30 lakh crore are given away in this one scheme alone how will the country be run? Clearly, the idea was to better political performance but not govern.
While the BJP was cautious on the OPS, promising to study it issue in detail and bring a solution, which the Finance Minister has dutifully done and presented to the nation, the Congress governments rushed in where BJP feared to tread. Today they are forced to backtrack on their promises, and eat their words alongwith the paper they are printed on.
A vital element if we have to fulfil our electoral promises is a combination of Management Acumen and Integrity. Delhi Jal Board which had a profit of 600 crores in 2013 today has a loss of a whooping 75,000 crores. December 6th, 2023 CM Punjab had a meeting with his administrative officials to somehow prevent the lapsing of unused 8000 crores of central allocation from a corpus of 11,000 crores. Only 3000 crores having been used. Now they have increased Bus Fares to raise a comparatively measly 150 crores! About 30 NHAI projects in Punjab worth 40,000 crores were till very recently ‘de-roaded’. Certainly calls for better administration.
While there is an earnest attempt by some to judicially, administratively or politically rebottle the freebie-genie, it seems to have outgrown that bottle for now.
It would be prudent for the political parties to think and plan before committing rather than having to default on those promises and face the wrath of the people, or even having to face an exit from governance as Punjab and Himachal may have to do if things do not get better, and fast.
The above does not absolve us, the citizens of this country, from our responsibilities. Caveat Emptor reigns. We need to ensure that we are able to rise above minor personal gain promises, and think of our city, state and country. The growth of my country guarantees my growth.
(Write is a BJP State Chief Spokesperson and can be contacted at Tayal1@yahoo.com)
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