FISCAL INITIATIVE - TOO LATE, TOO LITTLE - K Chandran Pillai
JOBY JOHN
FISCAL INITIATIVE - TOO LATE, TOO LITTLE
K Chandran Pillai
Speech in the Rajyasabha on 25th February, 2009
Thank you, Sir, for giving me this opportunity. At the outset, after keenly following the announcements of the Finance Minister yesterday in the other House, I want to say that this Interim Budget proposals, inclusive of the recent announcements of yesterday, clearly show the insensitivity of the Government towards the vast majority of people in this country. Why am I saying this? There is a trend in the Government circles to delay the reality in our real economy now. The need actually is to address that. Yesterday's announcements for 'J' class passengers, restaurant people and consumer durables, I am not denying them. But how much the ordinary people are going to benefit out of that? Focusing on employment, on the price rise issue, what this Government has actually extended through these measures? I can say the real happening in the employment sector of this country is very, very pathetic. Take one after another in our industry sector. Say, textile or handicrafts or traditional industries, in all these sectors, massive unemployment is occurring. Our Labour Ministry comes out with a study which is saying 'six lakh jobs only hitherto scrapped out'. But actually the situation is very serious. This is happening because of our export-oriented strategy for the last some decades. Now, it is completely in a setback position. Naturally, recession means an economy is leading to a situation where the demand is in a crunch. Raising demand and enhancing the people in terms of purchasing power is the real issue, and that is not addressed by this Government. That is the point number one I want to make here.
Further, on prices, focus on the question of grains. Where does our PDS stand? The Government is celebrating piling up of stocks of food grains. That is a good thing. But what is the real situation of the people on the ground? The structure of the PDS is totally demolished by this Government. In the APL category, the off-take is reduced to 73 per cent. Kerala is the worst affected State. I can say it from my own experience. Allowing people to purchase grain for their daily need at an affordable price, is a
question where the Government has not extended any measure, not even a single measure. In the area of unemployment, actually, now we have to look into our domestic market expansion. Since the export setback is going to continue for some more time, our Finance Minister rightly said the real impact of recession is not unfolded yet. Correct. But hitherto available symptoms are a lesson for us. You have to involve and engage with that.
I do not know whether the Government is aware of the suicides taking place in Gujarat. Jewel polishing workers are committing suicide because of this kind of situation. In Namakkal, Tamil Nadu, workers are selling kidney to survive. In Tirupur, 60,000 people are out of job because of non-protection from closures. In Moradabad, a good number of handicapped workers are now jobless. So, the need is demand creation within the country and relief to the people who are out of job. Even the remuneration of the retained workers has gone down. It is sharply cut. What I am saying is, to enhance the purchasing power of the people and to create a better demand in the economy, we need to give boost to the economy which is at the crossroads. It is not a serious matter and concern for the Government, it appears. It is a very sorrowful state of affairs.
Another thing I want to say is this. Yesterday, the Minister said, 'empowerment of women a mission or a new programme.' What we did so far to that sector is that we really dis empowered our entire women
folk by denying them proper representation even in Parliament or other bodies. After dis-empowering women in toto for decades and, even till now, not willing to take it up properly, what are we talking about? What is it? It is a clear mockery. Another thing which I want to know is this.
Sir, I am focusing on a real question which demands urgent attention. Today, Obama made another speech. I want to cite that example for the purpose of Government. Today, too, Obama declared further stimulus package there. Which are the sectors? One is job creation. Other is public health. And the other one is education. Our Government's stimulus package is very, very low. As rightly said by Arun Shourieji, it is too late, too little.
The FRBM is a pointer always in discussion. According to the Budget Speech, we are now revising our estimate of fiscal deficit to six per cent which was anticipated as 2.5 per cent. For the next year, we
are again expecting 5.5 per cent. I think it will go further. I am not worried about it. In this kind of situation, it is the responsibility of the Government to act according to the necessity of the economy and its people. In such a situation, instead of yesterday's announcement, focus should be on infrastructure. In infrastructure, we have some programmes now, mainly through PPP route. I am not that enthusiastic about that route.
Viability and gap funding is the main tool in that. Our infrastructure focus should go to the agrarian
sector of this country where the Government can invest massive funds irrespective of the FRBM which we already practically bypassed. So, massive investment is the question now. Which are the other countries which are doing that? What is China showing now? They are spending seven per cent of their GDP consecutively for two years on infrastructure and public health. What we did so far? Less than one per cent of our GDP! That is not correct. So, we are now in an extraordinary situation. That demands extraordinary actions which are lacking by this Government. I don't think the people of this country are going to spare the UPA or the Congress Party for this inaction.
Sir, it is very interesting to go through certain documents now available. The recent Human Development Report by the United Nations listed India at 128th position among 177 countries. That shows the divide. Further, among the top richest individuals in the world, four are from India; only two are from Japan. Their per capita income is fifty times higher than India's. It shows, how our corporate people are gathering money through various means and the police are encouraging them. This divide is a question to be addressed.
Sir, I am suggesting a special package for textile industry. Yet another point I want to cite is, overseas employment and our people who are working abroad. Massive return is happening now. The worst
affected State is Kerala. And, thousands and lakhs are coming back to India. A good chunk of it is from Kerala. For this particular phenomenon, what is the reply of the Government? Whether the Government is aware or concerned about it. Is there any package for their rehabilitation, re- employment, subsistence and revival? Government is not taking any measure. Kerala is a State which is affected severely because of multiple reasons. Cash crop prices are coming down; overseas employment is
drastically getting down; Government revenues are coming down. In the area of economic federalism where the States are now affected severely because of the meltdown, what innovative measures are suggested by this Government to help the States in terms of financial ability? Nothing
is coming out. So, that area is to be addressed properly.
Another thing I want to speak on is the real situation of each and every State in the background of the recent developments in the economic situation. And, it is to be done urgently. Otherwise, they may
not be able to carry out their responsibilities in terms of welfare measures, not only the new ones, but also the running ones cannot be pulled further. That is the situation which these States are facing. I am
speaking about the real situation of Kerala. In the recent Budget in Kerala, as an alternative measure, massive investment in infrastructure is proposed and new welfare measures are also initiated. To carry out such things in a successful fashion in the democratic set-up, in the federal system, we have to see the real pains of the States. That is also a point to be taken seriously.
Another thing I want to speak on is infrastructure itself and job creation. Now, we have some experience of the National Rural Employment Scheme and as a programme, it has benefited a lot. I am not undermining the shortcomings that have happened. They can be rectified in future also. But a massive expansion in terms of spreading that to the entire country, all districts, irrespective of rural and urban areas, is a very important thing. Another thing is that the number of work days can also be enhanced. An underdeveloped country can carry out immense new programmes in the rural infrastructure development where we can accommodate all these jobless people, and the remuneration should also be enhanced. Enhancement of remuneration will directly contribute to the enhancement of the purchasing power of the people thereby to create a demand, thereby to boost the economy that much. So, in the employment generation, one focus is infrastructure, and instead of suggesting a direct investment by the Government and a massive expansion, there is a need for universalization of the National Rural Employment Guarantee scheme. With these words, I conclude. Thank you very much.
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JOBY JOHN
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