How not to reduce the fiscal deficit

It is true that sound economics dictates that fiscal deficit should not be allowed to surge. Is it OK for the Finance Ministry to adopt any method in order to achieve this laudable goal?

GOI is adopting dirty tricks in the process. Tax refunds are delayed. Genuine payments to contractors and others are postponed to the next financial year. And now comes the news in Economic Times that even the usually mollycoddled exporters are not spared. Duty refunds are delayed by months.

The government should play the rules of budget in a fair manner. Any attempt to hoodwink any section of the public will misfire.

Corruption in India: what has changed in the past 50 years?

The Hindu dared December 30, 1963 reported:

"CORRUPTION IN TOP RANKS

Mr. M. Bhaktavatsalam, Chief Minister of Madras, was reported to have said at the conference of State Chief Ministers and Home Ministers in New Delhi on December 28 that corruption existed in higher ranks and should be dealt with promptly. Mr. N. Sanjiva Reddy, Chief Minister of Andhra, is understood to have said action should be taken against top politicians who did not have personal integrity. Mr. R. Sankar, Kerala’s Chief Minister, said big businessmen were maintaining “contact men” at important places to influence decisions."

Corruption in independent India has a long history. Five decades ago, chief ministers admitted the existence of corruption and atleast pleaded for preventive and corrective steps. Nowadays the chief ministers engage in denial. Arvind Kejriwal, the new member of the august club of chief ministers, has been voted to power on the basis of his tirade against bribery. One hopes that he will change the system rather the system changing him.

Lalu Prasad's discovery

Arvind Kejriwal has taken charge as Delhi's chief minister with delirious support of the public. He is seen to be a game changer in India's dirty politics. Narendra Modi is touring the country and attracting vast crowds wherever he goes. Are they relevant in present circumstances? Lalu Prasad has given his expert opinion:

"MUZAFFARNAGAR: Rashtriya Janata Dal (RJD) chief Lalu Prasad Yadav on Sunday said Bharatiya Janata Party (BJP) prime ministerial candidate Narendra Modi and Aam Aadmi Party (AAP) chief Arvind Kejriwal are no match to Congress vice-president Rahul Gandhi. 

Lalu assessed that Arvind Kejriwal and Narendra Modi is nothing in front of Rahul Gandhi. 

"Rahul Gandhi is Rahul Gandhi. It is the media, which has created the hype about Kejriwal and Modi," claimed Lalu. 

He also attacked the AAP saying, "In a month, people of Delhi will realise that they have made a mistake. People don't know what kind of people they are, especially the people living in slums don't know about their mistake. 

"The dream Kejriwal has showed to the people is nothing but a big drama. He will set the worst record of governance in Delhi. He is no Raja Harishchandra," he added. " TOI.

It is a pity that such a great seer is found guilty in a few scams. If UPA retains power after the elections, we can hope that Laluji will be our Home Minister. Why, he may even be a consensus candidate for prime ministership. Who said our future is bleak?

John Kerry and Salman Khurshid

When emotions were running high in India immediately after the arrest of Devyani Khobragade, the American secretary of state John Kerry spoke to India's national security adviser Shivshankar Menon and not the foreign minister Salman Khurshid. This was interpreted variously by the media. Was Uncle Sam trying to give short shrift to democratically elected leaders? Khurshid misled the nation claiming he was trying to establish contact with Kerry and that the latter was busy visiting some country and time zones interfered with early contact.

The New York Times has now reported what really happened:
"American officials quietly say they bent over backward to heal bruised feelings. On Dec. 19, Secretary of State John Kerry tried to get in touch with the Indian foreign secretary, Salman Khurshid, but Mr. Khurshid did not take his call for reasons he has not explained. So Mr. Kerry called Shivshankar Menon, the Indian national security adviser, to express his “regret” over the matter."

Salman Khurshid was merely being churlish. It is possible that the prime minister ticked him off for his unprofessional act. The minister was promoted to foreign affairs ministry after his family oversaw embezzlement of funds meant for physically challenged persons. Will he get another promotion now?

Aam Aadhmi Party comes of age

There is a saying that a couple understands themselves better after their first fight and not after their first night. When rifts arise, awareness of ground realities expands.

It is good that AAP has formed the government in Delhi. Appointment of ministers has caused the first rift in the party after its success in elections. Of course, Arvind Kejriwal has denied the existence of any rift. This proves that Kejriwal is maturing as a politician since one of the requirements for success in Indian politics is the readiness to deny the obvious and the ability to concoct the absent.

Vinod Kumar Binny left the AAP meeting in a huff and this was interpreted as his disappointment over his non-selection as a minister. He also assured the media that he would later hold a media conference and divulge details about functioning of the party. Kejriwal wants us to believe that Binny met him only to request him not to consider him for any ministership. Great!

Jayanthi Natarajan's resignation: Jettisoning a honest minister

The minister for environment and forests, Ms.Jayanthi Natarajan has resigned, ostensibly to devote more time for Congress party work. In a way she has been 'Kamarajised'.

Around the same time time that she resigned, Rahul Gandhi was addressing the FICCI.

“The biggest problem is absolute arbitrary powers at all levels of the system. This is what we face.. In India, there are lot of arbitrary powers. The Environment Minister or the Chief Minister can take any decision he wants,” he (Rahul Gandhi) said while responding to concerns of the industry that clearances were holding up projects.

“The real issue in all these things, whether land acquisition or environment it is arbitrary power,” Mr. Gandhi said, while advocating the need for eliminating the system of arbitrary powers.

Jayanthi Natarajan is one of the few ministers known to be non-corrupt. Yes, there have been delays in clearing various projects from environment angle. The delays were caused by the minister's steadfast adherence to guidelines and refusal to clear proposals on extraneous considerations. She was following the path shown by Jairam Ramesh who was the environment minister earlier.

Rahul Gandhi highlighted the evil posed by corruption (!) in his FICCI address. Needless to say, his insincerity was transparent. As if to drive home the message that Rahul Gandhi's address should not be taken seriously, the environment ministry will be in additional charge of Veerappa Moily whose closeness to certain industrialists is well-known.

Rule of Law

"This Office’s sole motivation in this (Kobhragade) case, as in all cases, is to uphold the rule of law, protect victims, and hold accountable anyone who breaks the law – no matter what their societal status and no matter how powerful, rich or connected they are."

This exemplary statement was made by Preet Bharara. Instead of celebrating the contribution made by the India-born American, Indian politicians of all hues have chosen to ridicule him. We cannot expect anything better from people who always think they are above the law.

Added on 21st December: In an article in Indian Express, Shekhar Gupta argues that instead of cursing Bharara, we should try and import him as our first Lokpal. The link to his article is given below:

http://www.indianexpress.com/news/our-indian-feudal-service/1210149/0