EDITORIAL

THE BACKDOOR

The backdoor is not as simple. For the layman it happens to be the door in the back part of the building. Reference to Chambers dictionary however gives it entirely different connotation. According to it, when used as adjective back-door means 'unworthily secret' or 'clandestine'. This means it is totally in the negative sense. Unworthy, clandestine etc are indeed not good adjectives for the gentlemen and fall in the domain or acts performed by rogues and villains. Backdoor is usual feature of any house or bungalow meant for cross ventilation, better light and of course as alternative to the front door. It is okay upto this as long houseowner uses it for any purpose. But back-door has also been the favourite of thieves for entry inside the house. Welcome visitors perforce knock at the front door. So are the inmates. Cine world has been using the back-door themes in many pictures. Even print media reflects that most of the dacoities thus reported are through the back-door. Back-door has also been in the reckoning for the lovers. The beloved could keep it unlatched for the lover for that pre-arranged mid-night tryst. Lovers of course have no malafides. It is somewhat impulsive, compulsive and irresistible temptation to be closer to the beloved one because of many restrictions in vogue, during sun-light sessions. Some children in their adoloscent age also like to use the backdoor, may be with the connivance of mother who has softer heart for the offkins. Front door entry. ..more

The Inside Truth-VII
J&K Governor Saxena’s

dinner created an event

From B L Kak
The event after sundown. When? On October 21, 1998. Where? Raj Bhawan, Srinagar, the capital city of Kashmir.. ...
more

Panchayats and
elections

By Prof Anmol Singh
Panchayat is the council of ''wise and Noble'' men of a village. It is a village-based body...
more

Teachers evaluations
by students
ACADEMIC PULSE

By Prorf S K Bhalla
The other day a College of Education operating in Jammu organized a debating contest on...
more

Strikes, agitations
and their settlement

By Babu Ram Sharma
In a democracy strikes, protests and agitations are the recognised peaceful methods.......
.more

Check this
fundamentalism
immediately!
Tales of Travesty

By Dr. Jitendra Singh
In his book "India Wins Freedom" published within a few.....
.more

Budget 2001-02
Bonanza to industry

By: K.R. Sudhaman
The first budget of the new millennium has certainly came as a bonanza....
.more

EDITORIAL

THE BACKDOOR

The backdoor is not as simple. For the layman it happens to be the door in the back part of the building. Reference to Chambers dictionary however gives it entirely different connotation. According to it, when used as adjective back-door means 'unworthily secret' or 'clandestine'. This means it is totally in the negative sense. Unworthy, clandestine etc are indeed not good adjectives for the gentlemen and fall in the domain or acts performed by rogues and villains. Backdoor is usual feature of any house or bungalow meant for cross ventilation, better light and of course as alternative to the front door. It is okay upto this as long houseowner uses it for any purpose. But back-door has also been the favourite of thieves for entry inside the house. Welcome visitors perforce knock at the front door. So are the inmates. Cine world has been using the back-door themes in many pictures. Even print media reflects that most of the dacoities thus reported are through the back-door. Back-door has also been in the reckoning for the lovers. The beloved could keep it unlatched for the lover for that pre-arranged mid-night tryst. Lovers of course have no malafides. It is somewhat impulsive, compulsive and irresistible temptation to be closer to the beloved one because of many restrictions in vogue, during sun-light sessions. Some children in their adoloscent age also like to use the backdoor, may be with the connivance of mother who has softer heart for the offkins. Front door entry means waking up everyone, be it the siesta or the night snoring. Backdoor is relatively silent affair with or without acquiescene. So back-door as noun is okay even if it be for robbery. After all none is born thief; these are the circumstances that force it on many of them. There are juvenile thieves as well who do it for the heck of it or for that extra pocket money so badly needed which is not available in the normal course. One can accept this also as one of those things that happen to some in the long span of life.

Now that adjective of back-door which means 'unworthily secret'. It is indeed so as manifested by back-door entry or clandestine recruitment made in this wretched State. Instead of exception, it has become a rule in as much as back-door entrants far outnumber those selected through laid down rules and guidelines. It also include recruitment of daily wagers despite ban on the same. Many writ petitions have been filed in Courts challenging backdoor recruitment and some lists have also been cancelled thus. This 'unworthily secret' affair is not for a song though. There are not only allegations but also confirmation that each post commands a price. When popular Government assumed helmsmanship of the State, it had promised to provide jobs to 26000 eligible youths in Government service. One can give the Government full marks for having exceeded the target by almost 300 percent. What a commendable performance! Never mind if it is done clandestinely for a consideration. There are always two sides of anything, the bright and the dark. You ought to ignore darker one because it reflects pessimism which is bad thinking. Bright side has some cheers and smiles. And the bright thing is that many people have managed the jobs. To that extent figures of the unemployed stands reduced. As regards money that exchange hands for any post, it is common knowledge that even selections throughout the recruitment board command a price. Unless that is forthcoming in most of the cases, the name is bound to get deleted in the final selection list. This 'unworthily secret' entry has gained legitimacy as even court directives are shown scant regard. There is a saying, "What cannot be cured must be endured". Backdoor has come to stay, courtesy unworthy system and those who rule the roost who follow the dictum, "Oh God. Make me shameless; Rest of the world I will manage myself!"

The Inside Truth-VII
J&K Governor Saxena’s dinner created an event

From B L Kak

The event after sundown. When? On October 21, 1998. Where? Raj Bhawan, Srinagar, the capital city of Kashmir. Occasion? Dinner hosted by the Jammu and Kashmir Governor, Mr Girish Chandra Saxena. Purpose? Get-together. Invitees? Among others, Admiral Bhagwat, Chief of the Naval Staff (CNS), his wife, Mrs Nilofer Bhagwat, and the US Ambassador to India, Mr Richard Celeste.

That Admiral Bhagwat sought to pursue the policy of transparency even after the Vajpayee Government dismissed him from active service can be borne out by the inclusion in his book of the question-answer session that took place between the US envoy, Mr Richard Celeste, and Mrs Niloufer Bhagwat at the Srinagar Raj Bhawan during the dinner hosted by the Governor, Mr Saxena.

And Admiral Bhagwat has termed as "very interesting" the questions asked by Mr Richard Celeste. Admiral Bhagwat’s loaded observation : "The main question that arises from this discussion is as to who in the Ministry of Defence was keeping the US Ambassador so well briefed?"

Mr Celeste’s question: What is happening between the Chiefs and the Ministry of Defence?

Mrs. Bhagwat’s reply: It is only a turf issue, I suppose.

Mr Celeste’s question: Is it all that simple? Do you advise the CNS on matters, which arise out of the MoD’s questioning?

Mrs. Bhagwat’s reply: The Military are self-opinionated… they don’t take advice.

Mr Celeste’s question: Is there a conflict of interest between your kind of work and the Admiral’s role and responsibility?

Mrs. Bhagwat’s reply: I don’t take military cases. Ours is a democrattem. It is a tribute to our Governments. They do not see it in the way you put it.

Mr Celeste’s question: What is the difference between the Sri Krishna Commission of Enquiry and the Jain Commission of Enquiry?

Mrs. Bhagwat’s reply: You have had your own experience with the Warren Commission inquiring into the assassination of John Fe Kennedy. Several red herrings were thrown before the Jain Commission (including the CIA involvement). The Jain Commission had to base some of the findings on hypothesis, whereas in the Sri Krishna Commission, everything in the report is based on facts and evidence.

Before Admiral Bhagwat’s visit to Kashmir, he had an important interaction with Mr Brajesh Mishra, Principal Secretary to the Prime Minister, Mr Atal Behari Vajpayee. But before that meeting on September 8, 1998, Admiral Bhagwat has an input from "a senior personality" that Mr George Fernandes had told him (Mr Brajesh Mishra) that his Defence Secretary, Mr Ajit Kumar, had conveyed to him that Admiral Bhagwat was "inciting" the Army Chief.

"This gentleman", Admiral Bhagwat says in his book, "who was on close terms with Mr Fernandes, had in turn told him (Mr Fernandes) what had come to his knowledge that some senior officers of the Armed Forces had begun to play a game of communal divide". Mr Brajesh Mishra had, during his meeting with Admiral Bhagwat, asked him whether he knew about a letter which Mr George Fernandes had addressed to the Prime Minister. Admiral Bhagwat replied in the negative.

The book has divulged that Mr Brajesh Mishra then proceeded to tell Admiral Bhagwat that Mr Fernandes, in his letter to the PM, had referred to his (Admiral Bhagwat’s) lack of amenability to civil control. He said that he would like to offer a word of advice to all the three Chiefs of Staff that they had to show more deference to political authority. Mr Brajesh Mishra, Admiral Bhagwat says, was obviously referring to a meeting of the Army Chief, Gen. VP Malik, and the Prime Minister on J&K border escalations.

The book has quoted Mr Brajesh Mishra as having told Admiral Bhagwat that the best thing would be to "clear the air" with the Defence Minister. On his return to his office, Admiral Bhagwat fixed up a meeting with the Defence Minister at 4.45 pm on Wednesday, September 9, 1998.

Admiral Bhagwat has revealed: "When I went to meet the Minister, he got up to receive me. We shook hands and I went straight to the subject ‘Brajesh Midshra told me that you had written a letter to the PM about the CNS… I have come to clear the air. Completely avoiding the subject, he was at his diplomatic and disarming best… and said, ‘he had stated in every forum, Cabinet meetings, discussions with my colleagues that you are the most cerebral officer in the Armed Forces…I had praised you for your vision, commitment to long term national goals, specifically as regards the air defence ship and the submarine building plan and you have my unstinted support in all".

Responding to another question from Admiral Bhagwat, Mr George Fernandes, as stated in the book, told him: "No…no…please don’t misunderstand. As a Minister in previous Governments also, I wrote letters to the Prime Minister and the President, once in two months or so. It is only for information as to how things are progressing in my Ministry… I only referred to your using strong language and some gaps in communications with you as the Navy Chief. I should have, I would have talked to you about my perceptions".

Admiral Bhagwat, in a obvious reference to the controversial Defence Minister, has emphasised that it is the "duty of the Government of the day to ensure in letter and spirit that the basic features of the Constitution are strengthened and never permitted to be undermined or subverted". And his warning: "Any other course would lead the country to a path of self-destruction which ids a one way street. The poison of hateful politics spreads fast and it will make us a Yugoslavia, Bosnia, Kosovo or Chechnya".

(Concluded)

Panchayats and elections

By Prof Anmol Singh

Panchayat is the council of ''wise and Noble'' men of a village. It is a village-based body. In olden times, villages would choose noble and wise men from amongst themselves to make a council or Panchayat to look after the well being of villagers and the village. Truthfulness and justness was the watch-word of a panchayat. The person chosen for the panchayat is called ''PANCH''. The word Panch has nothing to do with the figure 'five'. The word was used for very noble, wise and godly person. Thus they would say Panch-Parmeshwar. So much was the respect and regard for the Panch. The word of Panchs was final for the villagers and they would take it as divine wisdom. The Panchs of a village would solve the problems of the villagers and villagers would live happily.

Our neighbouring country, Nepal has a well defined Panchayat system. Before independence, villages had their own Panchayats in our country. After independence Government of India resolved to introduce Panchayat Raj. It was aimed at the upliftment of the villages through Panchayats. As, ours is a democratic polity, the village Panchayats also got involved in party Politics. The democracy was exploited to the hilt. The ''noble and wise'' of the villages were elected rather than chosen by the villagers. The political parties started giving mandate to the candidates desirous of fighting elections and winning the same for the party. The political parties, claim the states on the basis of panchayat elections. Thus villager lost his say in choosing the ''wise and noble'' as Panch of the village-the Panch Parmeshwar!! Party politics has changed the concept of panch and Panchayat. A political party wants its candidate to win the seat, no matter, what means he or she adopts to win. Gandhiji said means should be noble to meet noble ends. But post-independence polity paid no heeds to what Mahatma Gandhi desired, Practised or advised in this regard.

They say-all is fair in love and war and especially the ''War of Votes''. Money and muscle power, food and wine- which ever works, is put to use for the 'noble cause of the party'; Forget about the voter. He is of no consequence after voting.

In our state, panchayat elections are being held these days. These are not being fought on party-lines. They say, these elections are being held after a long gap of twenty three years. When were these held last time, few people remember, but these were not held the way, it is being done now. Sarpanchs and Panchs filed their nomination papers. They were given the option to withdraw. They were allowed to canvass in the true democratic fashion. About 200 to 250 votes were allowed to vote for a panch and neary 1500 to 2000 voters were to vote for a Sarpanch. For this small number of votes by and large, voters did not assert their wisdom or they were not heeded to and the aspirants (candidates) tried their luck by the most democratic method, they had seen their peers practising in the assembly and parliamentary elections. Loudspeakers, hand-bills, posters were used and door to door canvassing was done by the candidate in small segments of villages. The loud-speakers blared round the clock. Hand-bills and posters decorated every conceivable place in the village houses and lanes. Some candidates came out with appeals, for getting the low literary rate of villagers. The door to door canvassing of many candidates from same locality embarrassed the voters as much as cracking sound of loudspeakers stunned them. To crown it all the liquor flowed through the narrow lanes of the villages in sample quantity. Some candidates treated the votes with food and tea, others helped (corrupted) them with money. Where lady candidates were in field, their husbands pleaded for their spouces in true ''Bharti Pati'' style. The day of voting and after results were equally embarrasing for the small segments of village voters. It is not clear what plans, what menifestos or schemes the elected nobility of the villages have in their regarding upliftment of their villages.....but the heat and dust created during election may not be repeated. Afterall, the village community is a wellknit society from times immemorial. They had been using their wisdom to keep the environ of the village pleasant.' Baradaries' have lived in harmony and have been managing their own affairs. In some villages, this time also the community used their collective wisdom and chose their Panchayat representatives unanimously, and saved themselves from the electionering cresendo, in true panchayat spirit.

As the panchayats for different villages are being formed and the panchayat Raj is being ushered in our state also, it is expected that the villages will be taken care of in right perspective. It is expected that, under panchayat Raj, (i) the villagers will get the facility of SULAB Scheme, started by the Central Government long ago.

There will be no human excreta scattered around the villages and village fields. This will check nematode infection among village children and save them from anemia. (ii) The Panchayats will also take care of the drainage sysem of the villages. Cesspools will not be there to breed mosquitoes. Malaria/filaria/viral fevers spread by mosquitoes will leave the villages alone. It will be a great achievement of panchayats on village health front. (iii) The drinking water and its contamination will also be taken care of by the panchayats. This will check the spread of waterborne diseases like diarrohea and dysentery in villages (iv) It is expected that panchayats will also ensure the efficient functioning of village school and all village children will avail of the opportunity of receiving elementary primary education, thereby ensuring 100 percent literacy. (v) They will also ensure the efficient functioning of village/Block. dispensaries so that villagers get medical aid if and when required. (vi) Panchayats may also educate the villagers regarding the dangers of drinking and smoking, and also about the dangers of deadly AIDS. (vii) Panchayats can also educate villagers regarding problems of over population. (viii) The villagers will get the guidance to go in for improved methods of agriculture, other professions and vocations practised there. (ix) There is ample scope of cottage industry in our villages. The panchayats can ensure the suitable cottage industries for their respective villages. Numerous jobs can be generated in the village itself. Under the noble and wise guidance of Panchayat, village youth can start numerous profitable jobs and market their produce in the nearby towns and cities. This is a chance to translate the dreams of Mahatma Gandhi regarding the prosperity of village and the development of a prosperous and strong India.

Teachers evaluations by students
ACADEMIC PULSE

By Prorf S K Bhalla

The other day a College of Education operating in Jammu organized a debating contest on the topic of immense educational value which reads "Should Teachers Be Evaluated For Their Promotion By The Students" through readers of the news items were eager to as certain in great details the view point of the contestants and the Chief Guest thereby leaving many an ignorant person like me in complete darkness. Anyhow, the topic needs and in-depth study by all those who are in one or the other way connected with the trends in the world of education.

First, we should frankly admit that by and large teachers at all levels are scared of any sort of evaluation by the students since they like to place themselves on a very high pedestral and do not accept being knocked off their perch. The proposition of evaluation by their taught is an anathema to them and the person writing on these lines is their enemy No. 1. Those who preside over the destiny of the nation would never like to be judged by anyone. At some point of time a proposal had been mooted on these lines which was outrighty resented by teachers and ultimately scotched. The irony of all this lies in the fact that too often we say students are the best judge of a teacher.

At a time when the noble procession of teaching has been reduced to salesmanship in many case on account of dichotomy between what is being professed and practiced the mode on an experimental basic must be initiated in J&K and for achieving the desired results the necessary changes may be incorporated as and when required after due deliberations.

The students in our institutions come from a cross section of society with varied educational, social and economic background as also I.Q. So there is very danger that at times their opinions may be biased and prejudiced. Moreover, it is not possible for all of them to assess many things impartially. The problem of swelling numbers is also there. Should we abandon the while thing? Not at all in a hurry.

As the mode of evaluation of teachers is likely to be different at varied levels to start with at least at the level of Colleges and beyond Secondary School stage we should stress on the three basic points and not beyond that for the time being as it may give sleepless nights to many. These are (i) the degree of punctuality in engaging the classes (2) the percentage/mode of covering the course in each quarter of a session and (3) the general conduct of a teacher. All of us know that a not more is even hidden in these three points.

These three points though appear very simplistic are sufficient to keep the teachers in a state of alertness as it has been that conflicting versions are given by teachers and taught even regarding first two points many a time. Moreover, we need an impartial agency to sift the grain from the husk for which efforts can be made.

The intention here is not at all to injure the sentiments of anyone but on seeing the usual unreported complaints of bunking the classes by a few, multiplication of on the campus problems, coercing directly in a few but indirectly in many a case for attending the evening educational clinics and the general disturbed environment in our institutions these days, the points stressed upon need consideration by those who are genuinely interested in any sort of betterment.

Here it shall not be wrong to write that a lot more is also expected from educational leaders. They shall have to set an example of dedication, honesty, probity, sincerity and fellow feeling to be emulated by teachers which shall ultimately percolate down to the level of the students. Why not initiate a debate on this score to reach some sort of understanding? Let the teachers not set glittering tiaras on their pretty heads but forge ahead with all their might as the whole society especially youth are looking towards them.

Strikes, agitations and their settlement

By Babu Ram Sharma

In a democracy strikes, protests and agitations are the recognised peaceful methods of projecting problems and ventilating grievances by the aggrieved people to the concerned authorities when in the normal course their problems are not resolved. Generally, people are peaceful and exercise patience except when their sufferings cross the limit of their endurance and justice is not done.

Ours is a democratic set-up and in a democracy high-handedness does not work. Fair-play and justice govern it and ensure welfare, of the people, merit not mediocrity coupled with nepotism inspire it. Democracy is a peoples' government. The interests and concern of the people shape public opinion about functioning of the Government. Public opinion, therefore, matters most for the health and existence of the people's Government. It is essential that peoples' representatives in a democracy involve themselves with the peoples' problem and help the Government solve them in a peaceful manner democratically rather than making political capital out of them. The public issues agitating the people may, for example, be (i) collective killing of innocent and peaceful citizens and or ethnic cleansing forcing minorities migration by Pak - sponsored militancy in J&K State. (ii) Abductions, ransom, exploitation of communal sentiments, (iii) students' flare-up against irregular admissions in Medical Colleges, the poorest power supply affecting studies, agitations and consequent loss of academic session (iv) camouflaged irregular appointments on "compassionate grounds/"Rehbar-a-Talim Scheme" etc. adversely affecting the highly educated un-employed and the over-ageing ones (v) Hikes in prices, fares etc. (vi) less production due to poor water and power supply pushing up inflation etc. Democracy abjures violent and co-ercive methods of resolving problems which are common to the governed and their Government. Timely, sympathetic, helpful and negotiated settlement of issues are called for. There is no ground for arrogance, authoritativeness and suppression of agitations. The festering wounds of the sufferers need balm, dressing and treatment by the authorities. There is no scope for provocations and vengeance either on the part of the Government machinery or the protestors. All demonstrations should be democratic and peaceful. There should be no stoning, violence and burning, damaging of public property. The rowdy and anti-social elements amongst the demonstrators must be cautioned to be peaceful or excluded or in default the demonstration must be halted Violence vitiates the atmosphere and creates ill-will. Explosive situations must be diffused in the interests of peace, tranquility, normal work, business and economy. As a matter of fact, there is no ill-will between the protested and the police-the law and order enforcement machinery of the peoples' Government. All the Government services are paid out of taxes collected from the people and so the Govt. services need to be responsive to the peoples' difficulties. Similarly it behoves on the protestors not to take law into their own hands and ventilate their anger and resentments on police. Targetting police and destroying our public property in our loss. Police comprises our own people. It is to protect our life and property, maintain law and order and bring to book the criminals. If we start attacking our own protectors, who will save us. We must co-operate with the police and un-mask the wrong-doers and our enemies. We must not, therefore, indulge in destructions to compel the police to use force - lathi-charge, tear gassing, firing to disperse the unruly mob infilterated by anti-social and hostile elements. Use at force rather excessive force is highy undesirable in any case by any party. Public weal and welfare calls for public-spirited quick actions by the arbiters of power so as not to allow the matters to aggravate and become explosive. Even in intractable cases all settlements and agreements must be reached by amicable negotiations, consultations, discussions etc. so conducive for the affected people, the democratic Government and the national interests.

Check this fundamentalism immediately!
Tales of Travesty

By Dr. Jitendra Singh

In his book "India Wins Freedom" published within a few years after independnece, Maulana Abul Kalam Azad wrote that the partition of India would not have taken place if only Jawaharlal Nehru had demonstrated a little more discretion while dealing with Mohammad Ali Jinnah and if only Nehru had refrained from making a rather controversial Statement about the Cabinet Mission Plan in 1946. Maulana Azad's contention was, however, never accepted unquestioningly and while Azad blamed Nehru and the Congress for partition, Jinnah went on to describe Azad as a "show boy" of Nehru and the Congress.

The Taliban's relentless drive to destroy the ancient Buddha statues has a direct bearing in the context of the Indian subcontinent. Certain things ought to be checked well in time before these begin taking the toll of history. If the partition of India was allowed to come through in the unspoken hope that it would help pacify religious fundamentalism, the consequences were just the contrary with religious fundamentalism increasing by each day to assume its present heinous form. The same can be said of the Taliban's mad crusade which if not checked in time could lead from bad to worst.

Even though the Mullahs have traditionally played a crucial role in Muslim politics, what is being witnessed today is a definite retrograde march with Muslim fundamentalists gaining more and more ground in South-East Asia. One of the main reasons for this retrogression is that countries like Afghanistan, Pakistan, Bangladesh, Indonesia and Malaysia have never been exposed to significantly long periods of democratic rule. In Pakistan and Bangladesh, on the other hand, the long periods of military rule have enabled the Mullahs to gain ground because the Army rulers there used the Mullahs to counter the political parties. It is an eye-opener observation that in any of the elections in Pakistan the religious parties have not be able to get more than 5 percent of the votes. In Afghanistan too, the present Taliban regime has resorted to the most perverted practice of fundamentalism in a bid to seek credentials for its undemocratic rule.

In other words, the rising tide of Muslim fundamentalism is not inspired by any ideology or religious commitment but it is simply a handy tool for seeking political mileage. And, unfortunately, India is fast becoming the capital of this malaise. Note the thoughtless statement made by Delhi's Shahi Imaam linking Taliban's autocratic anti-Buddha campaign to Ayodhya's Babri Masjid - Ram Mandir controversy. The Delhi Imam forgets the basic fact that the Ayodhya's Masjid - Mandir conflict has taken so long to resolve primarily because an amicable solution is being sought within the parameters of democracy and secularism. Another fact which the Delhi Imam conveniently overlooks is that he can deliver such outrageous statements only because he is a citizen of liberal India and not citizen of an authoritarian Pakistan or autocratic Afghanistan.

Be that as it may, it is in the interest of India's Mulsim community itself that the right thinking citizens and the more enlightened intellectuals amongst them must take up cudgels against such foolish campaigns which in the long run threaten to deter the progress, prosperity and emancipation of none else but the Muslim himself. The question for them to ponder is not whether they are Muslims or non-Muslims but the real question for them to address is what kind of future do they wish to leave for their children in the new millennium.

More than anybody else, it should be directly a concern of the common man irrespective of whatever religion or faith he subscribes. More than anybody else, it is Umapathy's concern. The bard drops the cue: "Yeh Jo Madarase Ke Bigdhe Hue Hain Mulla, Inhe Mahkhaane Mein Le Aao Sanvar Jaayenge!"

***

Budget 2001-02
Bonanza to industry

By: K.R. Sudhaman

The first budget of the new millennium has certainly came as a bonanza to the Indian Industry as it provides a 'new deal' to kick-start the economy. It has for sure attempted to revive the feel-good factor, which was fast evoporating due to slowdown of the economy mainly due to poor performance of Agricultural, Industrial and Services sectors. But the problem is that the Finance Minister Yashwant Sinha seems to have totally forgotten the salaried and middle-class in the budget, as they don't form a decisive constituency in the elections.

Sinha is right in saying, "good economics is good politics and bad economics is no good politics." But one wonders whether the interest of the middle-class, which forms the intelligentsia of the society, does not constitute good economics. Middle class and pensioners are certainly not a constituency in the elections; so ignoring their interest might be good politics, as they may not matter in terms of votes in the upcoming assembly elections in five states, but certainly not good economics as protecting their interest is equally important.

Sinha's argument is that the budget should look at the larger interest of the society. Over the years an impression has been created that it must attempt to give something sections of the society and that this notion needed to be dispelled. It is not necessary that the Budget should contain something for every section of the society. This argument is certainly valid but take for instance the reduction in interest rates on small savings schemes. It is a step in the right direction as it attempts to align the rates with similar schemes of banks and that it has been done to move on to a lower interest regime to bring down cost of borrowing which has remained high in the country compared to global standards.

But one should not forget that lower interest regime is fine when the inflation is under check. Now the inflation hovering around eight per cent and widespread indications that it's likely to go up further in coming months, mainly because international oil prices have not yet stabilized, the measure will certainly hit the middle class, poor and pensioners hard, leading to lowering of demand for consumer goods which the finance minister wanted to spur to push up growth and investment in the economy.

With agriculture not doing all that well and infrastructure bottlenecks still persisting, it would be some time before industrial activity picks up in the economy. In such a scenario it would be hard to believe that inflation rate would come down in the coming months. This could mean difficulties for the poor and the middle class. Also there could be a time lag in creation of employment, which means problem for the masses and service sectors.

Nonetheless, it goes to Sinha's credit for keeping the fiscal deficit under check this year by achieving the target of 5.1 per cent of GDP. Keeping in line with the targets set in the Fiscal Responsibility legislation, Sinha has lowered Fiscal Deficit target to 4.7 per cent of DGP for 2001-02.

This is possible provided the ambitious Rs 12,000 crore target of Disinvestment proposed in the Budget is achieved, besides the revenue buoyancy projected in the budget. Going by the past record, Disinvestment has fallen far short of the targets in the past two or three years, it is hard to believe that the target would be achieved in the coming year that too with looming political opposition to strategic sales. There is definitely certain element of risk on this score.

Rationalisation of indirect taxes particularly the excise duty to a single 16 per cent rate and removal of all the Gujarat surcharge on taxes, are welcome measures. But none seem to realise the fact that the proposal to have single rate CENVAT is inherently inflationary as most of the items of interest to common-man which used to attract eight per cent excise duty, barring a few, would not attract 16 per cent. Also many items of luxury consumption have now been brought down to 16 per cent from 24 per cent.

The Budget has embarked upon a major labour reform by announcing the government's decision to amend Industrial Disputes Act to allow retrenchment of workers without state government permission in factories employing up to 1000 people. This policy has long been demanded by the industry. The moot point, however, is that the legislation has to be first moved in Parliament, which will certainly be referred to parliamentary standing committee. This means that the reform might remain only in paper this year like several other economic legislation like the Banking companies Act to allow banks to dilute government equity to 33 per cent, Fiscal Responsibility legislation, amendments to Sick Industries Companies Act (SICA) to wind-up Board of Industrial and Financial Reconstruction (BIFR).

Downsizing of government by 10 per cent in five years and 100 per cent metering of power by this year end are again two bold initiatives for which the finance minister deserves appreciation. But these measures are very difficult to achieve and like the economic legislation are likely to take much longer that the timetable set in the budget. Nevertheless, they are welcome, as a beginning has been made on these difficult reform measures.

In sum Sinha seems to have tried to bring-in several reforms which meant good economics but former Finance Minister Manmohan Singh is right is saying the "budget is long on intent and promise." How many of the proposed initiatives Sinha he implements this year remains to be seen.

PTI FEATURE



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