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VIEWPOINT: POLITICALLY CORRECT
Promise Unkept
Ten years of economic reforms have produced little
beyond nice budgets
By P. Chidambaram
 Ten
years ago, this month, India embarked on the road of economic reforms.
Every year there has been one day which people looked forward to with
a mixture of excitement, anticipation and apprehension-Budget Day. That
was the day when the nation judged the government of the day, both for
its performance and its promises. Sadly, many of us take our citizenship
seriously only
for a day.
February 28 last year was no different. To our
great relief, Finance Minister Yashwant Sinha delivered a budget full
of hope and promise. Most impartial observers applauded him, and I was
among them. I have no reason to reconsider my support for Budget 2001-02
either. Five months have passed, Parliament is in session and it seems
appropriate to take stock of the promises made and the performance of
the Government.
 Some
bold initiatives announced by Sinha have already perished. State governments
not-so-politely rejected his proposal to empower the states to procure
and distribute foodgrains. The buck stays with the Central Government.
All restrictions, including what the Budget described as "undue restrictions",
on the movement and stocking of foodgrains and agricultural produce remain.
The proposal to amend Chapter V-B of the Industrial Disputes Act was shot
down unceremoniously. Rejected with the same firmness was the proposal
to amend the contract labour law to facilitate outsourcing and offer contract
appointments.
Many legislative measures announced in the Budget
appear non-starters. Given the mood in the country and in Parliament,
there is not even an outside chance that the Sick Industrial Companies
Act will be repealed, the Companies Act will be amended or the national
company law tribunal will be set up. It appears the same fate awaits the
Electricity Bill 2001. Sinha had announced a time-bound programme for
installation of 100 per cent metering by December 2001 and the commercialisation
of distribution of power which, according to him, was "the key to
restoration of financial viability". Progress in this regard is nil;
on the contrary, the woes of the power sector have only increased and
the financial health of the state electricity boards has further deteriorated.
Sinha has a penchant for announcing new schemes
and programmes. There were a bagful in the last Budget too. Since few
will remember what they were, let me list some of them and ask some uncomfortable
questions:
Agriclinics and Agribusiness Centres will be
set up by agricultural graduates with the support of NABARD and loans
on attractive terms from banks: Do you know of any agricultural graduate
who has done so?
Rs 38 crore has been provided for the "Technology
Mission for Integrated Development of Horticulture in the North-Eastern
States", announced last year: The announcement was in 2000-01, the
provision of money is in 2001-02, so why don't we wait for it to happen,
maybe, in 2002-03? Meanwhile, the north-eastern states will make news
for all the wrong reasons.
An integrated scheme for women's empowerment
in 650 blocks will be launched: Another scheme? Has it got a name yet?
Has it been launched anywhere?
A new scheme for women in difficult circumstances
like widows of Vrindavan, Kashi and other places will be started: Have
you been to Vrindavan or Kashi recently and did you notice any scheme?
A Shiksha Sahyog Yojana to provide an education
allowance of Rs 100 per month to the children of parents living below
the poverty line will be introduced: Do you know of any child or parent
who has actually received the first payment of Rs.100?
The finance minister made other promises too.
By the time you read this he ought to have offered an attractive VRS package
to employees in the surplus pool, he ought to have implemented the recommendations
of the Expenditure Reforms Commission concerning downsizing in six ministries
and departments and he ought to have axed posts of three secretaries,
two joint secretaries and 44 directors in his ministry, apart from 1,675
posts in the Currency and Coinage Division. July 31, his deadline, is
just around the corner. What about disinvestment? Notwithstanding Arun
Shourie's ministerial (or missionary?) zeal, none of the companies named
in the Budget will be privatised. There is one bidder for Air-India. Indian
Airlines has none which is qualified. And at the rate they are withdrawing,
VSNL's score will be the same. Meanwhile, Maruti Udyog Limited is not
even on offer. Of course, the promise of having met the fiscal deficit
target for 2000-01 turned out to be wrong. The promise of reining in the
fiscal deficit at 4.7 per cent for 2001-02 will also prove unattainable.
Promises, promises, promises. That's all that
we hear. To be fair, Sinha is not the first finance minister to have made
promises and not kept them. And he will not be the last. Another year,
another budget, there will be more promises, and the promises of the previous
year would have gone with the wind.
(The author is a former Indian finance minister.)
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