Competent
governance, not freebies |
The Congress-led government will be busy preparing its first budget. IE elicited the views of a former senior member of the IAS, R Swaminathan, who served long years at the Asian Development Bank and retired as its Secretary on the directions he considered important for this budget. We give below his suggestions.
-Ed IE
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IE: The five major issues you consider important as the thrust areas.
R Swaminathan (RS): Agriculture, off-farm employment, infrastructure development, mobilisation of additional revenues and improved project implementation capabilities.
IE: Are you in favour of a fresh stimulus package?
RS: Given the demonstrated inability of the public administration machinery to deliver services and complete projects on a timely and efficient basis, I am not in favour of any additional stimulus package.
IE: There is concern over the already high level of fiscal deficit, accentuated by the earlier stimulus packages. What you consider as a trade-off between stimulating the economy and living with a high fiscal deficit?
RS: If the existing plan/budget allocations on the various employment generation projects and other rural development and infrastructure projects are fully utilised (not spent), then aggregate demand in the economy will automatically increase. There is no need to aggravate the already huge fiscal deficit by providing additional fiscal stimulus.
IE: Growth in tax revenues through 2008-09 seems to have experienced a deceleration. Your suggestions to reverse this trend.
RS: The Indian tax regime is one of the most benign in the world. There is no need to succumb to populist tendencies and give further tax concessions. As the economy improves in the course of the year, tax revenues would also go up.
IE: A grateful new government would also be keen to thank the electorate through specific rewards. Your suggestions on the areas that would receive attention for such rewards.
RS: The best reward the citizens would like is corrupstion-free, efficient and competent governance. That would be more valuable than freebies or concessions.
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