Railway Minister Dinesh Trivedi has done what was expected of him. He presented a Railway Budget that, while not going far enough in fixing the serious problems facing the Indian Railways, is nevertheless a substantial and welcome step. That his party, the Trinamool Congress (TMC), has chosen to distance itself from this piece of responsible policy making and call for his censure and resignation reflects a politics of populism and negativity that could be ruinous for the Indian economy. West Bengal Chief Minister Mamata Banerjee, whose Cabinet nominee Mr Trivedi is, has once again demonstrated her political irresponsibility and poor understanding of economic issues. Fantasy-based economics is all very well when a political party like the TMC is in opposition and dealing with an inept and apparently endless Left Front government. It is quite another thing when the electorate has entrusted it with the reins of power. Ms Banerjee will shortly have been comfortably ensconced in Writers’ Buildings for a year. However, it appears the West Bengal chief minister continues to think that little has changed, and that she needs to continue to oppose any reform, anywhere, on the spurious basis that it is “anti-poor”.
It needs to be said that Mr Trivedi has merely made a start towards correcting the mammoth errors of his predecessors — prominent among whom is Ms Banerjee. Passenger fares had not been raised for nearly a decade. To imagine that they can continue at years-old rates when inflation has spiked, when the Pay Commission has altered salary scales, and when fuel costs have gone through the roof is delusional. Had Ms Banerjee taken steps towards passing on cost increases to passengers in small doses, Mr Trivedi would not have been forced to take the steps he did. Instead, Ms Banerjee chose to accelerate the decay of a once-proud institution, and to allow its operating ratio – the amount it spends to earn Rs 100 – to hit 95 from the low 70s. The aam admi that Ms Banerjee seeks to protect is well aware of the increases in costs to which all organisations and corporations are subject. Responsible political leadership requires that good economics be adopted and explained, not that every shortfall in revenues be made up by the finance ministry — which appears to be Ms Banerjee’s preferred method, whether at Rail Bhavan or Writers’ Buildings.
Ms Banerjee’s irresponsibility casts a shadow on the much-vaunted revival of regional parties following the recent round of Assembly elections. The luminaries of the putative Third Front lined up behind the TMC, issuing statements condemning the Railway Budget. If this is indeed what the Third Front stands for, it clearly demonstrates this group’s inability to manage economic essentials, and the polity will be well advised not to confer on it the keys to national power. As for Ms Banerjee’s apparent demand that Mr Trivedi resign, it is worth remembering that she presided over the Railways at a time of several accidents. She did not resign. Nor did she institute safety improvements. Mr Trivedi has tried to raise resources to improve safety, and she demands he resign. Notions of duty and stewardship are clearly alien to the TMC leader. The very least that the prime minister and the finance minister can do is to protect this sensible Railway Budget, and hold firm against any rollback.