Castle in the air to mislead public : Vanam Jwala Narasimha Rao

Castle in the air to mislead public

Vanam Jwala Narasimha Rao

Telangana Today (18-07-2018)

With Telangana’s income and expenditure almost matching, TPCC’s promise of farm loan waiver cannot be kept.

The Election Commission of India 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 was once in five years initially after independence and later as and when elections were held.

The Election Commission seldom exhibits its authority and responsiveness when there is no election. As a result, political parties making false promises to the people go scot-free The Election Commission is among the few institutions which function with both autonomy and freedom, but it rarely dares to touch any political party on issues of false promises. The EC’s model code of conduct that has no statutory basis but only a persuasive effect regarding some sort of misuse of official machinery.

The 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. After a particular party is voted to power the opposition parties start making false promises until the next elections aiming at undermining the government and confusing the public.   

The commission for all practical purposes literally sleeps although the period between election and election and does not bother at all as to what a political party does. 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 its registration if they have no basis to substantiate. After all the people cannot be fooled.

Without Basis

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 if they are voted to power. In addition he has also promised to pay unemployment allowance of Rs 3500 per month. These two promises which he says will be included in their election manifesto is nothing but a ploy to attract the attention of nearly 50 lakh farmers and lakhs of unemployed youth. This is as ridiculous as building a house in the Indian ocean!!!

The TPCC President has not substantiated with any sustenance as to how his party (if comes to power?) will accomplish it. In several states as well as in the united Andhra Pradesh, several promises were made earlier but were not implemented after assuming power and the people were to be 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.

Money Matters

            one needs to have a comprehensive understanding of state finances first to know if this Rs 2 lakhs loan waiver-estimated to be around Rs. 36,000 Crores in all- is possible and feasible. The TPCC announced that it would waive this entire amount within 100 days or say three months of its coming to power? This is a “castle in the air”, for to make this happen, it needs 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 Rs tax and non-tax revenue. The tax revenue amounts 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 amount including Rs 300 crores revenue from mines and minerals amount to Rs 650 crores. 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 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 incurred. For salaries, pensions, loan instalments, interest payments and other essential expenditure amounts to Rs 8,782 crores per month.

Another Rs 1,300 crores per month has to be disbursed for irrigation projects. All these put together amount to Rs 10,082 crores per month and nothing in this is unnecessary. There will also be added expenditure in view of Pay Revision Commission for employees and pensioners.

Fundamental Questions

     This means the income and expenditure almost match. 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 going to be a freeze of all government programs and also stoppage of salaries to employees and pensioners? These fundamental questions must 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 recalled 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 installments.

The present congress and congress supported governments in Punjab and Karnataka are implementing loan waiver in installments. So far, the neighboring AP could waive only Rs 11,000 crores of the Rs 24,000 crores in four years.  Same is the case with Maharashtra, Tamil Nadu, UP and Rajasthan where it is done in installments.

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

            It is against this background that it requires a check from a competent authority, may be, the Election Commission, to see that such false promises attract disciplining.  The EC should check and view any such false promise seriously and take suitable action. END