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Thursday, February 12, 2015

The Coming Budget Is A Litmus Test Of Modi's Credibility



The Coming Budget Is a Litmus Test Of Modi’s Credibility

Former NDA Finance Minister Yashwant Sinha has it right on the reason why AAP won in Delhi. And Senior Journalist Ashok Malik was spot on in his advice to the BJP Central Government to ‘bash on regardless’.

Most of the abundant political punditry suggests a course-correction. However, almost all the hectic analysis misses the central point, the one that Yashwant Sinha made. It is simply this: when an entire opposition vote coalesces, even a strong campaign is doomed to failure.

But why did the opposition vote consolidate so completely behind Arvind Kejriwal?

Thereby hangs a tale of neglect. If Modi chooses to dither further on what he was voted in for, things can only go from bad to worse. He needs to remind himself why he won his thumping majority. 

Where are those acche din? He might think he deserves more time, but to not even make a beginning is baffling to the public. From the street right now, Hindutva is shouting much louder than Vikas.

 Yet, it really wasn’t the crude Hindutva excesses, the Church vandalising, the alleged arrogance, a socialist backlash, various knee-jerk decisions, the infighting,  the para-trooped, last- minute CM candidate,  the ill-advised negative campaigning, the continued raping and murdering, that pin-striped suit, or over familiarity with Obama. These things may well have annoyed some people, who don’t like Modi or his politics anyway, but it would not have lost BJP the election.

The BJP lost Delhi because nothing has changed for the nice guy RK Laxman’s common-man, or the AAP’s much nastier Aam Aadmi. That Jan Dhan Account alone does not hack it. The most positive happening since May 2014, delivered by providence and globanomics, is that fuel prices fell over 50%. India’s fuel expense ‘basket’ came to be 42% less weighty, but only 15% of this wind-fall was passed on to the public. The inflation rate dropped, but not the interest rates that could have restarted the investment cycle, beyond a paltry 25 bps.

Looking forward to the Railway and Union Budgets coming up, a sea-change must come, and right now. But the Modi Government will betray itself if it turns sharp Left towards populism in panic. Big-ticket Reform promises have been tantalising and teasing via sound-bytes from the Finance Minister. But will he deliver? The pace and content so far has been disappointing. This Government simply cannot hold the faith of an impatient, aspirational electorate without changing gear. It would be strange indeed if the Modi Government did not realise the magnitude of the demand for change.

What we have so far are some tweaked statistics, many pledges, loads of high profile photo-ops, resurgent financial markets, flashy plans in the misty future, even a little sabre-rattling. This is simply not good enough. Hopefully, these much awaited Budgets will exceed expectations by a huge margin, because only that will put Modi and his credibility back in the saddle.

NaMo won the biggest mandate in 30 years, to bring about vast economic transformation in the lives of all Indians.  But the first shock was the bureaucratic and unimaginative Union Budget, presented in June 2014. The BJP-voting public consoled itself then that reform need not necessarily come via the Budgets. It could be introduced any time, whenever the Government thought it appropriate.
 But then, nothing happened. The diesel price deregulation stands out as the only big reform in eight months. Cosmetic touches such as cracking the whip on Government office attendance and publicity campaigns on cleaning up Bharat are fine in their place, but dismaying for their inadequacy against popular expectations.

Many pro-BJP commentators, such as Tavleen Singh and this one, have been pointing this out for several months now, but the central leadership appears not to have noticed. Perhaps it was too focussed on winning Assembly elections, and collecting investment pledges abroad, to actually start the process off.

The public expected sweeping economic policy change by now. Instead, obscure BJP MPs , hate-mongering fringe elements, the ambivalent RSS Chief Mohan Bhagwat, have all been airing their views. None of them are the least bit bothered about ‘Vikas’. It must be NaMo therefore, who has to put the economic transformation, across-the-board modernisation, infrastructure building, and jobs, on track.

The Railway Budget on the 26th  and the Union Budget on the 28th  can surely be mindful of the poor, and retain a set of  efficient welfare measures, but Modi must be clear he did not promise, and wasn’t elected, to run a a dole Raj.  That is what UPA did, alongside its corrupt ways, and the voting public was not impressed.

Big-bang reform therefore, must be the overwhelming flavour of Budgets 2015. It must be a landmark set of announcements, ushering in stage-two of India’s rapid development. It must be seen to be fulfilling Modi’s promises to the people of India, while also redeeming the pledges he has made to the Indian diaspora, and the international community at large.

For: NitiCentral

(822 words)
February 12th, 2015
Gautam Mukherjee

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