Case6-April-2012
Our economy was in a crisis situation at the time when our country got Independence. The industrial, infrastructural, transport and communication facilities that we see now were much lacking. Majority of the population depended on agriculture for their daily living. Still people were hard working and content with what they earned. Availing loan was perceived as a shameful activity.
The plight of our economy made the great thinkers of central and state government to implement various developmental plans to improve the nation economically. The cooperative movement which got flagged off in 1951 to ensure formal credit to farmers, especially to small and marginal farmers raised great expectations. In due course the noble philosophy of cooperation was foregone due to vested political interest and now it remains as a most corrupted institution. The reform packages announced, including the latest package announced by Vaidhiyanathan were of no use due to practical implementation hurdles. Only the financial revival package which cost the government much was taken care off, while the rest of the recommendations are yet to kick off on a larger scale.
The Integrated Rural Development Program (IRDP) introduced in 1980’s was perceived as a milestone poverty reduction program. To impart development in the life of poor, the Indian government spent Rs143 billion on subsidies. This is the first program to reach larger number of poor by way of subsidies. This program also paved way for the poor to access formal credit through banks and cooperatives. Also the credit of sowing the first seed of negative mind set among borrowers that “when we borrow from bank, we need not repay” was sown through this program which now stands strong like a banyan tree.
The Swarna Jyanthi Grama Swarojkar Yojana (SGSY), was introduced in 1999 as yet another poverty reduction program with a different approach (Presently comes under the banner of National Livelihood Mission for which 3,915 crores got allotted in the budget 2012- 13). This program also because of improper seeding kept people intoxicated in the subsidies, thereby not achieving the real purpose.
The Mahatma Gandhi National Rural Employment guarantee program ( MGNREGA) which was piloted in 2005 and currently being implemented across the nation (Rs30000 crores allotted in the current budget) is considered as the star program of the central government. Drafted as an act, this boasts of ensuring right to employment for all villagers who have the capacity to do physical work. The program much acclaimed by the world, when gets implemented in different states faces different kind of problems thereby reducing the quality and making it divert from the very purpose for which it is created. From “money for work done” it has transformed to “money for not doing work” in many villages creating a wrong mindset among the people. The employment guarantee for 100 days to a family (envisaged through tank renovation works, construction of farm ponds, de-silting of wells, planting trees etc, in the villages for common purpose) during nonagricultural season, when practically implemented seems to forego the basic principles. The works were not done perfectly due to mutual agreement in the villages between the beneficiaries and the panchayat’s in many villages. Moreover it gets implemented even during peak agricultural seasons, causing scarcity of labor for agricultural purposes.
Not only for poverty reduction subsidies for food, agriculture and energy is being spent on larger scale, the fertilizer subsidy of Rs. 90,000 crores being one among them. The state governments, too on their part are throwing away subsidies without a long term vision – from free television sets to free mixie, grinder and fan, which understandably are politically motivated. The census 2011 report says that, there are more number of Television than toilets in Tamil Nadu, thanks to Rs. 4500 crores spent for providing free colour television set to poor. Currently, the Tamil Nadu government for its free rice, free mixie, grinder and fan, free cows and goats plans has allocated Rs. 8000 crores.(The Tamil Nadu government extending the subsidies has allocated Rs. 22,500 crores in the recent budget for all subsidies).The most worrying fact is the amount intended for other welfare schemes is directed towards subsidies. In fact Tamil Nadu leads and demonstrates to the country in this aspect.
In Tamil Nadu through the World bank aided project of Pudhu vazhuvu (a SHG based program rechristened as Vazhudhu kattuvom and again now taking the old name) another 750 crores is spent as subsidies. For midday meals program another 924 crores is being spent every year. For the past twenty years, electricity is free for agriculture which is again largely misused. Apart from this through ‘Single bulb” scheme 1.3 lakh houses gets free electricity. By this scheme, Rs. 4800 crores has been given as subsidies every year.
It is disheartening to note that our national money is wasted either through poor implementation of schemes or through unwanted subsidies. Selfish interest takes priority, which is the curse of the nation foregoing long term vision in best of interest of the country. The result is the mounting debts of the country (India’s external debt, as of March 2009, was US$229.9 billion (22.0 % of GDP) which has increased to US$ 326.6 billion (Sept 2011) and is about to rise even more).
The programs and plans implemented with short term vision, apart from resulting in wastage of money also result in negative impact on the society and the attitude of the people. The culture of expecting more from the government is snowballing and people’s desire to ‘work hard’ is getting diminished. It is agreeable that some subsidies are inevitable for poor. But without weeding the implementation hurdles, the purpose will not be solved. In implementing the freebie schemes, currently there is no transparency or honesty, they being overshadowed by corruption and selfishness. Because of this the purpose is not served. If this trend continues sustainable and productive service will remain a utopian dream.
Making people to understand the real situation of the country, taking bold steps to cut unnecessary subsidies, designing a fool proof implementation strategies and planning with a long term focus, is what the need of the hour.
The need to integrate the rivers in Tamil Nadu was felt long long ago. The estimated budget for this is around Rs40000 crores. It is possible to generate such a huge resource if proper planning is done. This will ensure the basic necessity greatly, thereby contributing to livelihood development. Poverty and famine can be kept at distance. If irrigation demand is met completely and agricultural productivity is improved, the subsidies for farming can be reduced a lot.
If we have intention to invest around Rs.16,000 crores for renovating and strengthening of 39000 irrigation tanks in Tamilnadu, there will be significant impact on the lives of Tamilnadu farmers in a sustainable way.
The investment towards solar energy will also be a worthy investment considering the “current” scenario. Thereby we can prevent exploitation of nonrenewable energy and improve usage of sustainable renewable energy.
In our country, people exists in different stages of development- poor, very poor, middle class, upper middle class, rich and very rich. The below poverty line list already existing is not a true one. The recent planning commission estimation of fixing Rs22 and Rs28/day as sufficient for a family also came to much criticism. Hence appropriate system to ensure one that the subsidies reach only the real poor must be in place. There is nothing wrong in providing subsidies to ensure basic necessities to the needy. No one comes to government demanding subsidies. They are availing subsidies since the government is ready to give. Political intentions are there behind subsidies rather than real concern for people.
A leadership which can forego the nectar of unnecessary subsidies and ready to give bitter pills for the goodness of people and with unselfish broader perspective is much needed for the country. Those who govern us should work in best of interest of the nation and the people, with a long term sustainable and equitable growth. Only then the real development is possible.