Known to all Indians is the fact that every political group has a distinct vote bank and the subsequent coming in of such groups varies the economic policies followed by the preceding governing party. The clash between the DMK and AIADMK in Tamil Nadu brings in new perks and measures, which are in favor of one or the other set of people. Subsidies flow emptying the reserves of the government and thus adding to the let down of the economic structure. When viewed in a broader sense, we can observe new governments coming up with all new sets of economic proposals as a way to recover the paralyzed economy; however no gains are secured.
Many experts talk of delinking the economic wing and the political arena, which would ensure that any change in the administrative squad would not allow the economy to writhe. On the contrary, the constitution accords supreme power to the government so as to devise workable policies for the betterment of the economy. Hence, economic and political wing are somewhere or the other in each other’s pocket. Indeed, India has witnessed numerous Finance Ministers with distinctive approach towards the economic arrangement, along with governments with altogether different perspective with respect to extending monetary favors or curtailing them.
In the year 2011, the arrival of the new government in the state of U.P. also welcomed drastic changes in the government expenditure structure. Subsidies too changed their recipients in the direction of the prevailing wind. Same is the scenario when new union governments steer clear of the strategies of the former government, leaving many vital projects in the midway, thus adding to the depletion of valuable and ever-scarce resources. We have even seen cases where funds are allocated by ministers in the areas of their concern despite of the fact that real assets rarely augment. Funds distribution and policy making have become more of person-oriented.
Economic momentum that is much-necessary is broken up with limited tenures of governments and the subsequent coming in of all new set of decision makers. Plus, the bureaucracy too modifies the manner of working in view of the new ministers. At last, the outgoing government leaves a burden of massive public debts, which rarely bothers the new government, rather eats up the fortune of the nation. Also, with restricted term of five years, none of the groups of administrators bothers about long-term goals that demand consistency and nil wastage of resources. ‘Mutual good’ is thus replaced by economic opulence of just a few clusters.
Ranging from the foreign policy and guidelines for the corporate sector to the reservation system and defense outlays, every new government comes up with unalike game plans that set aside the preceding measures. Certainly, the economic environment demands persistence, along with deep-rooted consistency. For instance, when a newly formed government announces a sudden decline in the tax slabs or custom tariffs, the revenues are sure to suffer unless balanced. For quite long, we have been witnessing every Finance Minister with altogether dissimilar principles that may prove to be a blessing in the short-run; however fail when uniformity lacks.
Either the political groups will have to come up with a clear consensus on the economic wing, or a structure outlining precise powers and limitations of the newly formed government will have to be adopted. Else, post every five years, resources would be moved from one scheme to the other, leaving nothing in the end. Having promised a prosperous tomorrow to all Indians, the new Modi-led government will have to fairly assess the former allocation of funds and policies in place with respect to subsidies, taxation, corporate sector, and government spending. Those necessary and constructive shall not be allowed to die owing to likings of new ministers.
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