The Tasks Ahead
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The Tasks Ahead

Archive Manager by WEB DESK
Jun 30, 2014, 12:00 am IST
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Cover Story: The Tasks Ahead

Recommendations by Ekatma Prabodhan Mandal

Ekatma Prabodh Mandal through its draft paper on ‘Bharat Ka Abhyuday Perspective’ has made short term and long term recommendations to the government. Some of the key short term recommendations pertaining to the budgetary policy are as follows:
The policy guidelines for Rebuilding-Nation efforts, national goals and important action aspects come out of national philosophy. Formulation of a national plan, implementation strategy and specific action programmes must be in the light of these policy guidelines to obtain best results in tune with the national ethos.
BUDGET – Immediate Tasks
Budget must be declared three months in advance so that it can be properly studied. Government retains right to impose certain actions with immediate effect but these should be minimised.
1. Stemming Price Rise
Inflation is the most regressive tax crushing common people since their incomes do not increase with price rise. Hence, inter alia, the following action should be initiated:

  • Give RBI a mandate to control the inflation within a band. Such action itself will reduce inflation expectation
  • Reduce government deficits particularly revenue deficits
  • Aim for surplus in Current Account by adjusting discretionary imports with suitable changes in levies or bans, if essential
  • Introduce free trade of agricultural commodies with exceptions, checks and balances
  • Selectively release food grains from FCI godowns in the open market to damp down inflation

2. Accelerating Growth
Without growth the disadvantaged section of the population cannot look forward to opportunities to better their lot. New government will have to, among others, act on the following:

  • Expeditiously complete the partially complete projects of national importance
  • Projects waiting for environmental clearance must be cleared or rejected within 3 months.
  • Review all sick PSUs and either close them down or sell unless they serve a security or such crucial purpose.
  • Announce intentions to set up electronic chip and gadget industries to generate revenue of Rs 5 lakh crore in 5 years.
  • Float global tenders for setting up electronic industries in SEZs with 100% exports.
  • Introduce new promotion agency and scheme for agro-processing near production centres in rural areas.
  • Announce drastic reduction in subsidies with ameliorating measure for disadvantaged section of population hit hard by this.
  • Introduce SINGLE-WINDOW clearances for SSIs within 3 months, for medium sized industries in 9 months.

3. Boosting Employment

  • Introduce “National Apprentice Scheme” in consultation with industry associations to absorb young aspirants for varying periods of on-job-training with stipends as per the work skill.
  • Hold discussions with industry to promote “Family enterprises” as main sources for them

Be positive indicator for defence

The Indian Armed Forces have pinned a lot of hopes on the new government for address of the problems that they are facing.
Impetus to modernisation is a priority. Wish list of all three services is long in view of the stagnation of the last two decades. Army has long standing critical shortage in artillery guns, air defence equipment and Heptres apart from other items. The Air Forces is looking for fighter aircraft that are fundamental to its operational capability. The Navy wants submarines, mine sweepers, etc.
Morale of the force is a second area of focus. Implementation of one rank one pension will be a big challenge. On the administrative front, there is a need to reinvent relationship between the defence ministry and the services to remove debilitating red tape, which is stalling all forward movement.
Everything cannot be achieved in one go. The silver lining is that the Prime Minister has given highest priority to the defence sector. Shri Arun Jaitley holds Finance and the Defence portfolios, which should pay dividends. The budget will be a positive indicator of things to come.
—Jaibans Singh,
Chief Editor of Indian Defence News and Views Portal

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