Most often the words belie any rosy picture that might have been painted. The way the government have functioned in the past reeks of irresponsibility of the highest order. The government is a continuing entity, irrespective of the party in power.
As children have to carry the burden of the parents, successive governments have to pay for the squander mania indulged in by their predecessors. Grim warnings, on the worsening financial health of the country become meaningless, unless accompanied by equally drastic and effective measures. The problems have to compounded by the way the governments have been living, not from hand to mouth; but from one loan to another, and leaving behind inescapable financial commitments. For instance, the Government of India has to pay interest to the extent of Rs. 90,000 crore on the loans it has taken. Interest, salary, food, and fertiliser subsidies cost the country the entire revenue of the central government. Apart from this, 24 state governments have sought central assistance of Rs. 15,000 crore to meet the pay panel revision obligations for the year 1999-2000. The special package to bail out North Eastern States, where their own revenue is negligible, envisages 90% grant and 10% loan. Though many state governments have realised the futility of the populist programmes, like the supply of free electricity and no land revenue, none is willing to shed them for fear of losing their vote bank. The subsidy bill in the oil sector is Rs. 8,000 crore due to subsidiy on kerosene and LPG. The withdrawal of this subsidy has exposed the Central Government to the compulsions of running a coalition. The oil imports will now cost the country Rs. 54,000 crore as compared Rs. 24,000 crore in the previous year. How long will this game of robbing Peter to pay to Paul continue is difficult to guess.
There is a plan to sell equity of the profit-making public sector units to cover the fiscal deficit. The Government expects to raise Rs. 10,000 crore by this move. Obviously, there are no takers for the loss-making PSUs, which would continue to bleed the already bled exchqeuer white. The government has been able to raise less than Rs. 2000 crore.
There is nothing wrong in making efforts to improve the situation and see the government finances are in sound condition. If it is not due to the vote bank politics, it is the need to retain patronage, perks, and avenues of the graft, which keep the PSUs in the position they are in at present. Checking malpractices and launching an effective drive against graft can help prevent the climate of plunder. After availing of public utility services like telephone, water supply and electricity, some members of Parliament choose not to pay, as there is no deterrence for the defaulters.
It is often said more severe the law, the more is the possibility of its misuse. But, for some categories of people, like the bank loan defaulters, such laws exist only on paper. Complicate recovery procedures and slow judicial process encourage the defaulters to flaunt their ill-gotten wealth with immunity. Despite all talks of having a responsive and an accountable administration , the fight against corruption is not on the top of the agenda of any political party or government. Take for instance, the case of Nagaland Government not co-operating in conducting preliminary investigation by the CBI into the alleged Rs. 25,000 crore lottery scam. During the special audit, the Controller and Auditor General of India (CAG) noticed that the entire amount of the sale proceeds of the lottery tickets, aggregating to Rs. 38,297.32 crore, was not initially deposited into the government accounts. Secondly, the average guaranteed return payable by the State’s sole distributor, and received by the Government, was 0.105% of the total face value of the lottery tickets by the State’s sole distributor. Also, there was a loss of Rs. 9.74 crore, due to irregular and arbitrary action on part of the Government to reduce the amount guaranteed return payable by the State’s sole distributor. The most serious irregularity pointed out by the CAG, which had affected thousands of purchasers of the lottery tickets, was that the tickets for 469 draws, the turnover of which was Rs. 254.05 crore, were printed and marketed, but draws for the same were cancelled and no account of the unsold tickets produced. As a sitting MP from one of the important political parties was involved in the affairs, the CBI mostly drew blank for any assistance from the State Government. It may also be mentioned that CBI was not given any security cover by the State Government on the ground that its forces were already deployed on other security duties.
For the profligacy of the government, as if there existed no tomorrow, the present generation is paying through its nose.
The government, without considering its impact on employment opportunities, raised the age of retirement of the government employees from 58 to 60 years. Steel Authority of India feels that the only way to get out of the red is to reduce it back to 58 years. This will immediately rid it of 17,000 surplus employees, including a lot of dead wood, which cannot be weeded out by following the long cumbersome procedures, weighted in favour of the inefficient and indolent. Board of the Indian Airlines has already taken a decision to reduce the retirement age from 60 to 58 years. The career progression of an official in the Government is based on Annual Confidential Reports. Most often, these reports do not reflect the true picture. It is because of the national culture that as long as somebody is off my hands, let him rule elsewhere. While in Commerce Ministry as a Director, I chanced to look at the system in detail. A Joint Secretary, by virtue of his seniority felt that he and his batchmates were due for promotion to the rank of Additional Secretary. While his colleagues of the same seniority were promoted, he was not. It was found that his confidential reports had not been written for the last three years. He was one of the shirkers and a negative person, who believed that saying ‘no’ to any work was the best policy. He felt that saying ‘no’ can never get you in trouble, whereas saying ‘yes’ can be problematic and boomerang despite the best intentions. The Secretary of the Commerce Ministry was ‘too good’ a person to call a spade a spade. Instead he chose not to write the annual report of that officer. Writing the truth would have meant that the officer retired at the same level he was. Moreover, there is a kind of brotherhood in service, where nobody wants to displease anybody, and least of all, comment in writing, which would jeopardise anyone’s service prospects. The result is the equation of the efficient and inefficient.
This particular Joint Secretay went and begged the Secretary to take care of his career. I, as the Custodian of the Confidental Reports, received three years’ report written by the Secretary. The Secretary paid glowing tributes to the officer. The report was written generally to the effect that the Joint Secretary was the pillar of the ministry and without him, the exports of the country would plummet down. It was the exact opposite of what the officer had done. I asked the Commerce Secretary the reasons for his assessment. The Commerce Secretary said, “I know about the officer. He has not done well. He may do better elsewhere. Why should I spoil anybody’s career.”
I jocularly replied that the way the report had been written on the officer, in all fairness, he should skip the in between rank of Additional Secretary and straightaway become the Secretary.”
It is this kind of generosity which is the undoing of the country. To get any worthwhile done, one has to be willing to be unpleasant. Only in this way, the country can move forward in ushering prosperity, transparency, and accountability within the rule of law.
The author is a retired IPS officer and former Director of Central Bureau of Investigation
(The views expressed by the author are his own. )