PRIME MINISTER’S
ADDRESS
TO THE NATION
Dated 21-Sep-2012
The first thing that must be appreciated about
the address of the Prime Minister, Dr.Manmohan Singh to the Nation at 8 PM on
21-Sep-2012 – is the very fact that the PM chose to address the nation on the
measures that his Government has just introduced. One would like the Prime
Minister to be addressing the Nations more frequently than this.
In fact, a Monthly address on issues facing the
Nation would be in order. If not as an address to the Nation, it can be a
monthly Press Conference.
A Press Conference will not be a monologue; it will
not be a one-sided affair like the Address to the Nation. There would be
questions and answers, and some of them will be not very easy to handle, but
such uneasy questions do need to be answered. On the other hand, an address to
the Nation, though welcome in itself is not a substitute for a press
conference, where the PM addresses the people, takes their questions and
answers them too. Having said this, it is still a welcome thing that the PM
chose to take the nation into confidence. This is sure to generate further
dialogue on the subjects covered by him.
The second Point is – On all issues which the
Government introduced as REFORMS – there are differences of Opinion among all
Political Parties. Many of them will object to the very Nature of the REFORMS.
Do they really qualify to be called as REFORMS at all? There are serious
differences on each of the measures introduced by the Government. Also, the
TIMING of some of the PRICE RISES proposed and threatened to be proposed
shortly – seems NOT GOOD AT ALL. With a DOUBLE DIGIT FOOD INFLATION and a NEAR
ZERO GROWTH staring the common man in the face, are the measures introduced by
Government, the LAST STRAW on the POOR MAN’S BACK? This question will keep
rising in every person’s mind in future – if INFLATION happens to gallop from the
current High levels to Higher levels?
Is there any one measure proposed to arrest the
FOOD INFLATION on one side and stimulating Growth in the manufacturing sector
on the other? The RBI has placed the ONUS SQUARELY on the Government to adopt
fiscal and administrative measures to REDUCE FOOD INFLATION. When will this Urgent
issue be addressed? This is a question being asked by many.
These measures are much more urgently needed
and – the PRIME MINISTER will need to concentrate his attention on these
measures too immediately. If this is done urgently, the other measures like FDI
etc will receive greater acceptance probably.
The timing of these measures coincides with embarrassing
revelations on COALGATE – as pointed out by almost all Opposition Parties. It
is unfortunate that the Opposition Parties failed to bring ALL RELATED,
RELEVANT FACTS into a discussion in Parliament. Even if UPA was unwilling, it
was incumbent on OPPOSITION to insist on discussion. But, the Opposition gave
the impression of running away from the DISCUSSION in Parliament. The PM
therefore need not discuss COALGATE
before the Nation – before he discusses it in Parliament.
The Government might very well survive this
shock REFORM treatment to the Nation – given the inclination of various Parties
not to side with BJP, and the BJP’s own adamant clinging to its SUICIDAL LINE
OF HINDUTVA – for no earthly Benefit whatsoever.
Individuals and organizations tend to have some
survival Instincts and suicidal Instincts. For Congress – the suicidal Instinct
is proving to be its track record of SCAMS and CORRUPTION. Each scam is
becoming bigger than the previous one. There is no way of ignoring them. For
BJP, it is its HINDUTVA SLOGAN – which is of no earthly Use whatsoever for any
Political Party in India. By dropping the slogan, heavens are not going to fall
– for the BJP, while potential for much greater acceptance of its credibility among
the masses and among other parties will arise instantly.
Congress is unlikely to give up on scams and
BJP is unlikely to give up on HINDUTVA.
Despite all the Noise by BJP and others, it is
very difficult – almost impossible – to point the finger of corruption at the
Prime Minister, Dr. Manmohan Singh. Inefficient, incompetent, lack of
leadership qualities – one may accuse him of any or all of these – but NOT as CORRUPT
at personal level. This does not Gel with most people.
Most people will like to believe him as the one
bearing this stink of others. India knows Manmohan only as a Great Economist.
Even Bad REFORMS may just get accepted by Public, coming from the PM, if he
projects them Better and more frequently before the Nation.
Having said this, I think, the Nation must
demand not only the views of the PM, but also the views of each of the
Opposition leaders in Parliament. There should be strong democratic winds – and
these must happen BEFORE a Bill or
Administrative measure is implemented. This should become the practice in
future before any major measure affecting the Public is implemented.
Now, Let us briefly look at the measures
covered by the PM in his address :
1)
FDI in retail: PM says -it will not harm small traders. India as a
growing economy can accommodate both small & big retail. The PM also
says that there will be Benefits to farmers from the storage spaces etc to be
created by BIG RETAIL. The PM did not deal with the BUSINESS LOSS, if any, to
the small retailers, if Big Retail deals directly with Farmers.
2)
Diesel price hike: The PM says that – the actual need is to raise
diesel prices by Rs 17, but his government has only increased by Rs 5.
The PM says, India still has lower prices than its neighbours.
3)
Diesel for by big Vehicles: PM feels – most of the diesel is used by larger cars and SUVs of
the rich and by factories and businesses. He says, Government need not run into
large fiscal deficits to subsidize them. Fine, if this be so. But, is this
really so? Will state transport undertakings and private buses plying for
public transportation not increase Rates and tariffs now?
4)
Reduced taxes on petrol: PM says, Government
has reduced taxes on petrol
by Rs.5 per litre to prevent a rise in petrol price – as crores of middle class people who drive
scooters and motorcycles will be benefitted and not hit by Petrol price rise.
Is costlier Petrol really a common man’s fuel and cheaper diesel a rich man’s
fuel? Is this logic right? Can we not
have differential (LOWER) prices for public transport vis a vis the large cars / SUVs running for the RICH, who are any way
clamouring for these fuel price rise. Let them pay for it – exempting at least
to some extent, the Public Transport.
5)
Cap on LPG cylinders: PM says – this is
essential in India’s
current difficult economic situation. He says, this will reduce fiscal deficit
and will reduce the steep rise in cost of essential commodities. But,
does it not directly place the higher cost of LPG on common man now? The logic
of 6 cylinders for common man needs more statistical data. A number like 9 seems
more reasonable – though still not adequate.
6)
Subsidy burden: PM says - Oil
subsidy on petroleum
products was Rs.1 lakh 40 thousand crores last year. If these reform measures
are not taken, the subsidy burden will be over Rs.200,000 crore this year.
But, whether as subsidy on oil products (financed through taxes) or as higher
prices for the subsidies, any way, the final burden falls on common man only. Taxes
are any way increased annually to finance the subsidies. As taxes, rich man has
to pay more and poor man slightly less. This tax money goes to finance the
subsidies. But, if subsidies are cut, the burden falls more on common man and
less on rich man. It looks like that!
7)
Takes on CRITICS: The PM appealed to the people not to be misled by those
who want to confuse by spreading fear & false information. "The same
tactics were adopted in 1991. They did not succeed then, they will not succeed
now. I have full faith in your wisdom," the PM said. These jibes could
probably be avoided – and more statistical Info in support of the measures
could have been given. This can open up more arguments and counter arguments
from Opposition Parties. The jibes do reflect some justified anger at the
Opposition tactics. But, Opposition is bound to come up with INFORMATION which cannot be easily wished away as misinformation.
8)
Economic growth: The PM pointed out
that many European countries
are facing severe economic problems and that his Government is determined to
see that India will not be pushed into that situation. Europe is of
course in turmoil. But, will these reforms ensure better economic growth? If
so, how?
9)
PM seeks trust & Cooperation of People: The PM says that -We have much to do to protect the interests of
our nation and we must do it now. At times, we need to say NO to the easy
option and say YES' to the more difficult one. This happens to be one such
occasion. The time has come for hard decisions. For this, I need your trust,
your understanding and your cooperation."
On the whole, the PM’s address is a welcome one.
With each such address coming from the PM, his own personal reputation in the
public mind will GROW significantly. The negative tags attaching to him will
fall off very quickly.
We need more such addresses with more details
and facts on key issues facing the nation – and they must come preferably before
adopting any such key measures, and not after implementing them. Some of the
opposition and other view points, which we listen to on these issues are indicated
above under each caption briefly. They are also relevant. In fact, on issues
like FDI in retail, a mere statement from the PM is not sufficient. A white
Paper on how the BIG RETAIL is functioning in various countries, the benefits
and disadvantages accruing to those Nations – would have served the purpose
much better. If Benefits are larger and disadvantages are lesser, acceptance
would be that much easier.
The Nation also needs to know how Food
Inflation and LOW GROWTH issues will be tackled by Government.
But, Government seems to be readying for
raising price of sugar. What other REFORM MEASURES will come are unknown.
The Nation will seek to know - HOW WILL FOOD
INFLATION COME DOWN? This is the issue raised by RBI. This is the issue hurting
common man right now.
The other side of the coin is –how and when
will the HIGH INTEREST RATE REGIME of the RBI come down, back to what it was 2
years ago?
All said – it is necessary to congratulate the
PM on his address to the Nation. We may or may not agree
with any or all of these measures – but, we will have to concede that the PM has
his genuine points and views.
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