Wednesday, July 18, 2018

EC should stall guileful promises by parties : Vanam Jwala Narasimha Rao


EC should stall guileful promises by parties
Vanam Jwala Narasimha Rao
The Hans India (19-07-2018)

It is unfortunate that the Election Commission of India, supposed to be an autonomous constitutional authority, limits itself to the responsibility of merely administering elections to Lok Sabha, Rajya Sabha, State Legislative Assemblies and the offices of President and Vice-President in the country. This responsibility it shoulders only when it is mandatory or obligatory which happened once in five years in the beginning days after independence and later as and when elections were called for either in the whole country or in a state. It forgets that it must be cognizant of partisan dishonest promises to lure the people.

It is also unfortunate that the Election Commission seldom exhibits its authority and responsiveness when election process does not take place. This results in the political parties often go scot-free making false and untruthful promises to the people which under any circumstances would not be possible and practicable for implementation. In fact election commission is amongst the few institutions which function with both autonomy and freedom, but it rarely dares to touch any political party on issues of dishonest promises. Commission however sticks to the rule book only in the case of candidates model code, expenses, affidavits, offensive speeches etc that too during the election process. From the day one after the formation of new government, the opposition parties start making false promises until the next elections aiming at undermining the government and confusing the public.   

The election commission for all practical purposes literally sleeps although the period between election and election and does not bother at all as to what any political party does particularly with reference to promises galore. When there is no check from any corner the people are the losers and they have no option except to become victim to false promises. The election commission should check and view any such false promise seriously and if necessary threaten to cancel party’s registration if they have no basis to substantiate for their promises. After all the people cannot be fooled.

One such promise often heard these days in Telangana is TPCC President’s announcement to waive agriculture loans to a tune of Rs 2 lakhs when they are voted to power and pay within 100 days. In addition he has also been promising to pay unemployment allowance of Rs 3500. These two promises which he says will be included in their election manifesto is nothing but to attract the attention of nearly 50 lakh farmers and lakhs of unemployed youth. This is as ridiculous as some political party making a tall promise that it would build houses for poor in Indian ocean by filling it or in River Godavari or Krishna!!!

TPCC President’s announcement is not substantiated with any sustenance as to how his party (if comes to power?) will be able to accomplish. It’s a known fact that in several states as well as in Telugu states several promises were made earlier but were not implemented after assuming power and the people were mischievously mislead. Against this background if one can analyse the tall promises made by Congress, it is crystal clear that they are nothing but mere promises and impossible to implement.

            This needs a wide-ranging understanding of state finances and the pros and cons for Rs 2 lakhs loan waiver amounting to Rs. 36,000 Crores as well as its possibility and feasibility. TPCC announced that it would waive this entire amount within 100 days or say three months after it comes to power? This is a “castle in the air” impossibility, the reason being necessity to mobilise Rs. 12,000 crores per month. 


            Telangana state has an income of Rs 10,340 Crores per month from all sources. This includes tax and non-tax revenue. The tax revenue amounts to Rs 5,090 crores which includes Rs 1,650 crores from commercial taxes, Rs 1,800 crores from GST and IGST, Rs 850 crores from state excise, Rs 390 crores from registrations and Rs 300 crores from motor vehicle tax. Similarly the non-tax revenue amounts to Rs 650 crores including Rs 300 crores revenue from mines and minerals. In addition from Government of India as state’s share of taxes Telangana gets Rs 1,400 crores and towards central grants it gets another Rs 900 crores. Loans within the FRBM limit and other income from Government of India account for Rs 2,300 crores every month.

            As against this income, the essential and committed expenditure to be incurred unquestionably on first of every month includes Rs 3,200 crores for salaries of employees and pensioners and Rs 1,900 crores towards loans and interest, totalling Rs 5,100 crores. In addition to this, Rs 415 crores for free power to farmers; Rs 217 crores for ration and fine rice scheme; Rs 450 crores for Aasara pensions; Rs 100 crores for Kalyana Laxmi and Shaadi Mubarak; Rs 400 crores for students’ scholarships; Rs 800 crores for state’s share of centrally sponsored schemes; Rs 100 crores for Arogya Sri and EHS scheme; Rs 150 crores towards KCR Kits, RTC subsidy and grants to GHMC; Rs 1,050 crores for Rythu Bandhu scheme etc are to be essentially met. For salaries, pensions, loan instalments, interest payments and other essential expenditure, in all per month it amounts to Rs 8,782 crores. Added to this for irrigation projects another Rs 1,300 crores per month has to be disbursed. All these put together amount to Rs 10,082 crores per month and nothing in this is unnecessary. There is likely to be additional expenditure in view of Pay Revision Commission for employees and pensioners.

            This means the income and expenditure almost matches equally. Under these circumstances how is it possible to mobilize Rs 12,000 crores and in case if the entire income is spent on loan waiver that too in one go, as announced by PCC Chief, how does the government run? Is it not going to be a freeze of all government programs and also stoppage of salaries to employees and pensioners? These fundamental questions are to be answered by those who announced the loan waiver.

            It is also impossible to mobilize funds through loans as there is a limit to obtain loans imposed by RBI and Government of India. Even the financial institutions refuse to extend loan. It may be reminded here that TRS after coming to power moved heaven and earth and left no stone unturned to waive loans amounting to Rs 17,000 crores all at a time. It was not possible and as a result budgetary allocation had to be made and loan waiver was implemented in four instalments. The present congress and congress supported governments in Punjab and Karnataka are implementing loan waiver in instalments. The neighbouring AP state could only waive so far Rs 11,000 crores from out of Rs 24,000 crores in four years.  Same as the case with Maharashtra, Tamil Nadu, UP, Rajasthan where it is done in instalments.

            The other promise of PCC that it would pay unemployment allowance of Rs 3500 per month amounts to Rs 700 crores at least if there is an estimated 20 lakh unemployed in the state. This is also equally impossible.

            It is against this background it requires a check from a competent authority, may be, election commission, to see that such false promises attract disciplining.  END

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