 "Arvind Subramanian")
Finance Minister Arun Jaitley on Wednesday batted for the government's Chief Economic Advisor (CEA) Arvind Subramanian even as his party's Rajya Sabha member Subramanian Swamy targeted another senior functionary of the government.
In a series of tweets on Wednesday morning, Swamy termed the CEA a "Trojan Horse" and insinuated at Subramanian's alleged proximity to American interests, arguments he had put forth in the recent past to demand the removal of Raghuram Rajan as governor of the Reserve Bank of India (RBI).
Neither Prime Minister Narendra Modi nor Bharatiya Janata Party (BJP) President Amit Shah spoke on the issue. The BJP offered a mealy-mouthed defence of the CEA. "We do not agree with Dr Swamy's views. They are personal," said Shrikant Sharma, party national secretary.
Full text of the testimony by Arvind Subramanian
The Rashtriya Swayamsevak Sangh (RSS) leadership, exultant after what it saw as its triumph by seeing the back of Rajan, let it be known through sources, who didn't want to be named, that Swamy had their support - an indication that the faultline was widening between the RSS, which swears by swadeshi in its economic policy, and the Modi government that has pushed ahead with reforms. Swamy has also claimed to have a list of 27 people whom he wants sacked from various government positions as they are residual elements from the previous Congress-led regime.
With Swamy's attack having a bearing on the morale of the bureaucracy as well as investor confidence, the finance minister chose the customary media briefing after the Cabinet meeting to set the record straight.
Addressing reporters along with Telecommunications Minister Ravi Shankar Prasad, Jaitley was unambiguous in his support to the CEA.
He said the government has "full confidence" in Subramanian as CEA. He said the CEA's "advice to the government has been of great value", including on the changes in the textile policy that the Union Cabinet announced on Wednesday. Jaitley thought it important to add that his party has also said that it didn't share Swamy's views.
In a robust defence of the bureaucracy, Jaitley cautioned against the trend of attacking persons whose "office and discipline constrain them from responding."
"And this has happened more than once," Jaitley said, an unmistakable reference to Swamy's attack on Rajan.
Sources said Jaitley was less than happy at the party's anodyne statements on Swamy's attacks, and this was a primary reason why he addressed a media briefing after the Cabinet, when it hadn't taken any decisions related to either of the two portfolios that he holds. Jaitley is known not to engage in a war of words with his detractors like Swamy and a couple of others important during the BJP's Vajpayee-Advani era. But the finance minister came across as keen to defend Subramanian, in particular, and the bureaucracy, at large, as he shushed Prasad when the latter had suggested that questions related to Cabinet decisions be taken up first.
When a reporter asked why Swamy is not being reined in, Jaitley deadpanned: "Thank you for your suggestion". Asked if Jaitley was Swamy's target, as speculated by Congress leader Digvijaya Singh, the finance minister sidestepped by saying he has already answered the question. Prasad interjected to state that the "integrity of Arun Jaitley is impeccable. His transparency and integrity are unquestionable."
Asked for his comments on Rajan not seeking a second term because the government did not defend him in the face of Swamy's attack, Jaitley said, "The premise of the question is incorrect. I had categorically spoken on this subject when the comments were made about the RBI governor. Even party president (Amit Shah) had specifically stated the party does not agree with that comment which was made."
Top finance ministry sources offered incontrovertible evidence that the real reason for Swamy's attack was the continuance of Arun Jaitley as finance minister. Swamy has made no secret of the fact he believes he would be a better finance minister of India.
Some in the RSS said Swamy's comments were part of a considered tactic of weakening the Modi government and predicted that a government that spoke in two voices "would continue".
Top leaders of the RSS say that Swamy's credibility in the Sangh is high and that was the reason he was allowed to merge his party into the BJP, given a nominated seat in the Rajya Sabha and made a Member of Parliament. They cite his indefatigable efforts to bring the Gandhi family to account and his services to the Hindu cause. And they add that a 'two-front war' on the Modi-led government is likely to continue in the future and will be healthy for both the government and the party. They say they are aware that Narendra Modi and Swamy can never be allies because in Swamy's eyes, they are competitors. "That is Swamy's utility," they said.
Others in the party, on the other hand, said Swamy's attack had weakened the government. "At a time when we are nearest to recasting India as a nation where Hindus can feel a new sense of pride, elements like Swamy are vitiating the atmosphere," they said. They cited the Modi government's outreach to Pakistan, Afghanistan, the Arab countries and other Muslim majority countries to explain how the gesture was meant to reassure the Muslim minority in India. They also attributed Swamy's growing importance to rival ministers in the government who wanted Modi undermined so that their own profile would improve. They cited the fact that Swamy had met Home Minister Rajnath Singh in the morning before his tweets.
Speaking on Swamy's remarks, Urban Development Minister M Venkaiah Naidu said: "Party has not said anything. Government has not said anything... the question is that you cannot gag everybody in democracy. If the party says anything, then I can react; if the government says anything, then I can react on that," he said.
Former Infosys co-founder T V Mohandas Pai said in the face of Swamy's attack, people are asking a question, "who is running the country? I think it is very important that the Prime Minister and finance minister put their foot down where he gets off. If Swamy has got some evidence, got something, then they can talk to the people in the party and decide what they want. Whatever you want to do, do it quietly."
