Following the announcement of 30% pay cut in pay scales of MPs and MPLAD funds for 2 years post COVID-19 outbreak, I wrote an article on the need highlighting the need for mercilessly curbing financial profligacy of the government machinery at all levels through aggressive implementation of “Austerity” measures.
Now that the “War Clouds” have made an appearance over the Himalayas with Chinese PLA and Indian Army border clashes in Ladakh, it is high time that Modi announces boldly more stringent austerity measures.
My earnest plea to Modi is to stop payment of salary to “Crorepathi” MPs both in Lok Sabha and Rajya Sabha – based on “Affidavit” declarations until the financial situation improves.
More importantly, first time MPs staying in “Five Star Hotels” at exorbitant costs at “Tax payers” account must be directed to move to respective State Guest Houses and stay in whichever accommodation is made available to them.
Meanwhile, all ex-MPs unauthorizedly overstaying in “Bungalows/Apartments” must be “thrown out lock stock and barrel”.
Extracts of my suggestions in the April 2020 article must be implemented that include: 1) 30 percent reduction of expenditure of 7 Lok Kalyan Marg (formerly Race Course Road) drastic reduction of his escort convoys; 2) 30 per cent reduction of expenditure of Rashtrapathi Nilayam including reduction of large security contingent and cavalcade of cars; 3) discontinue the grand ‘award’ ceremonies; and, 4) 30 to 50 percent reduction of perks and privileges of elected representatives on account of travel, telephone, electricity, water etc., perks and privileges of elected representatives.
Also, the latest pay scales, perks and privileges of elected representatives need a dramatic reduction until the GDP growth rallies towards 8%.
After all, MPs enjoy ‘fair price vegetable shops’ in their residential areas fully subsidized and also in the Parliament Canteen.
Is there a need for frequent visits to various parts of the country by the political masters accompanied by their aides and Secretaries? After all, we are today living in “IT Age”. “Video” conferencing facility is available through which all official businesses can be transacted thereby precluding absence from post due to proceeding outstation on duty.
Many of the Commissions and Committees and advisors must be given a ceremonial adieu at both Central and State government levels. For example the need for a seven-member disaster management Committee is superfluous.
Where is the need also for advisors - super numerous? Why should individuals demitting jobs on attaining retirement ages are elevated to advisors posts? Does it imply that their successors are not first-rate quality professionals – incompetent, inefficient and incapable to formulate policies? Should that be the case, then selection and appointment of officers should be based on merit and not seniority per se.
Is there a need for the Standing Committees to undertake extravagant study tours both domestically and internationally to prepare their observations and recommendations when with a touch on the mouse one can gain access to whatever information one wants to know the realities?
Ban all foreign tours by all and sundry for frivolous reasons. Also, deputation to pursue advanced studies to bureaucracy and others must be stopped. Wasteful expenditure on account of “Five Star” Seminars, Advisers, endless constitution of Commissions and Committees and so on are surely a massive drain on the exchequer. Their perks and privileges are massive.
The lesson of economics is simple: debt-laden economies would suffer dramatic collapses.
Of course, there is redundancy everywhere. If “Good Governance” is to replace “Poor Governance or Policy Paralysis”, many of the Ministries like the I & B and others must be abandoned. The numbers of Ministry’s/Departments with overlap and corresponding roles and functions must be integrated. By doing so, the size of the Cabinet at the Central Government must be reduced to 25 or so at all costs; and the Cabinet size reduced to NOT more than 40.
Look at the loss incurred on daily basis by the Indian Railways – a whopping Rs.30 crores on daily basis. Ipso facto, no one is talking about the reasons for losses incurred in the management of the Indian Railways. Poor management and financial extravaganza are key contributors to losses. None is concerned about “scrap retrieval” management which can yield large revenue yields. Old rails and coaches can be seen dumped astride the railway tracks all over to be rusted or stolen.
Yet another “White Elephant” is the Indian Airlines. In seven years till March 31, 2013, the airline industry reported total accumulated losses of $8.6 billion, and the industry’s debt had climbed to $12.6 billion (12600 crores). Recently, visual media exposed financial extravaganza on account of sustaining perks and privileges of serving and retired top level functionaries of Indian Airlines and even their families to include daughter-in-laws and sons-in-laws and widowed wife.
The story of inefficiency or gross mismanagement is a long one. Power utilities are reporting losses from all over the country. Majority of PSUs are a drain on the exchequer.
Oil companies are also reportedly running at a loss. Why cannot stem the rot of profligacy within their own houses. Furthermore, the demand for hike in prices of oil products is not justified. Why can’t the GOI reduce excise duties? Can’t the State governments reduce sales tax and other levies at local level?
The ‘common justification’ given is ‘Oil Companies’ are running at a loss due to subsidies – yet another fraud. Now, the latest ground given is that the “Rupee is Weak”. People are no more fools or gullible. They understand very well that it is one of the “Holy Cow” to milk revenue. They also understand that prices can be controlled by reducing burden of excise duties.
If the Oil Companies cannot manage themselves cost-effectively and provide petrol at affordable prices to the “Am Admi”, their top managers should stop enjoying free petrol as perks and privileges and pay like any other “Am Admi” to feel how it hurts people financially.
Like in mid 1970s, all political leaders and all those in government service including judiciary must stop using government vehicles particularly those enjoying VIP security with long lines of escort vehicles accompanying them. I distinctly recall the days when Supreme Court Judges used to commute in “Pooled Car” system in late 1970s.
Admittedly, there is financial overstretch in every department of the government both at the Central and State levels. Economy cannot sustain the financial extravaganza of the politico-administrative overstretch even if it grows at 10% GDP for the next 10 years.
Confronted by the twin challenges of COVID-19 economic recession and the threat of war on the Himalayan region, Modi, hailed as a strong and decisive leader, cannot delay the need for extraordinary and comprehensive imposition of “Austerity” measures. Even the Chief Ministers of all States must realize sooner than later the nation’s economy can only bear the burden of expenditure up to a limit. Beyond a limit, they will collapse due to financial overstretch.
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