While he completes the seventh year of his governance, the Prime Minister could claim two distinct USPs — he could claim to be an honest man and a distinguished economist. As an honest man, unquestionably, he leads a dishonest government. Certainly, he leads a government which is unable to contain inflation. Both his USPs are of no use to the nation.
State of Economy
For almost three years we had double digit inflation in the Wholesale Price Index. The food price inflation is also well into double-digit figures. Consumer prices are much higher. The failure of this government to contain inflation has become a conspiracy against Aam Admi.
This Government has let down the nation by consciously selecting ministers in key infrastructural ministries such as telecom and highways who were low on the integrity quotient. The reputation of two of our success stories post-liberalisation has been hurt because of such selection.
This year there is a significant decline of about 35 per cent in the FDI (Foreign Direct Investment). Even on the investment front in domestic industries we can see the flight of investment out of India. Why is this happening? First, the government has failed to take any steps in furthering the reform proposals. Second, our infrastructure is well short of the global standards. Third, inflation continues to be disproportionately high. Fourth, social sector expenditure is welcome but it is a matter of concern that its leakage is immense. Additionally, several flagship schemes are not resulting in any asset creation. Fifth, our high corruption index adds to costs and disincentivises investments. Sixth, we are, at times, losing the balance between the economy and ecology and several ecology clearances are turning into a licence issue. Seventh, our interest rates are very high rendering our industry non-competitive. Eighth, from land availibility to granting clearances, we have failed to create a friendly environment for investment.
Corruption
The UPA-2 has been among the most dishonest governments in the history. The telecom sector was one of the big success stories of the post-liberalisation era. For some reasons, it had been out-sourced to the DMK. Within the DMK it was out-sourced to a faction of the State’s ruling family. Even when the Trai suggested an auction of the spectrum there was a minister who advanced the application date, who altered the first-come-first-served policy and sold the spectrum at a fraction of the market value. What should have been added to the revenue was added to the private pockets. Even when the finance secretary warned the government in September 2007 and the finance minister warned the prime minister on 15.1.2008, the prime minister did not act. When this house debated it, the government thought that the issue had been talked out. The present telecom minister feels that there is a zero loss. The prime minister viewed that like weaker sections of the society the telecom companies are entitled to a spectrum subsidy. The nation, in the process, has lost valuable revenue.
The Commonwealth Games was an international event. The government created negative environment around it. Let alone the rot in the Organising Committee, stadium construction was hugely over priced. Today the government does not have any clue how to use the infrastructure created in the name of Commonwealth Games.
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Apartments meant for the Kargil martyrs and heroes were usurped by the Congress party leaders. An effort has been made to downplay the huge corruption in the development of the national highways. Investigations have been routinely interfered with.
The S-band spectrum allocation to Devas Corporation raises important questions. It is a department which falls directly under the Prime Minister. The Devas-Antrix Deal was cleared by the Cabinet. A huge loss was proposed to be caused to the Government of India. Merely by cancelling the deal you cannot wipe out the criminality under the Prevention of Corruption Act.
The lack of proactive government initiative in finding black money and Indian money stashed in foreign banks is apparent. The Government almost appears to be apologetic in its effort. Why is the government so active in maintaining the secrecy for which after all the defaulters have to be prosecuted? Certainly their identities would have to be made public.
Excerpts from the Leader of Opposition Arun Jaitley’s speech in the Rajya Sabha, February 22