President’s address underscores rightist economics. The President’s address to the nation, which is the Modi’s government first official statement of its policy trajectory, ticked most boxes of intent, made the right noises, pushed some of the usual ‘Hindu rightist’ buttons, drawing applause but was lacking in any comment on the known levers of the solution of a badly damaged economy & the starkness of poverty across the country. It confirmed its extreme position of neo-liberal economic policy by its intent of opening up defence, Railways to FD, disinvestment across the board, revival of SEZ policy, etc . It remains silent on the huge subsidies given to the corporate sector budget after budget, crossing the fiscal deficit of Rs.5.6 lakh crs the last budget. It was equally silent about focussing on the reducing govt expenditure on welfare schemes, barely factoring for inflation growth in the last one. While it touched on ‘multiple areas of reform’, the deafening silence on reducing the entry of speculative hot money & regulation of the financial markets is another proof of the extremeness of its rightist economic agenda. The stock & commodity markets are at record peaks & its volatility pose great risk to the savings of the middle-class. The address has strong words on getting ‘black money’ back, but there is no mention of even rudimentary measures such as GAAR, reform of double taxation treaties with countries which encourage round tripping or taxes on financial market profits. It talked about simplifying taxes, when India has the lowest tax:GDP ratio & a stead fall in savings & therefore investment. There is no call to the corporations to focus on nation building by focussing on employment generating productive investment in manufacturing & services instead of hoarding the surplus in the form of financial instruments, real estate or capital expenditure & investments outside the country. The government sector will clearly be out of employment generation, with the President reiterating ‘Minimum Government’ & the contradictory, ‘Maximum Government’. There is no mention of the alarming situation of bank NPAs or belt-tightening of the rich by policy on non-essential imports, including items of luxury. There are the usual noises from the right in large scale investment in high tech areas & large scale infra but nothing of any significance for the toiling masses in the farms & factories. There is no mention about the need to multiply the planned expenditure in education & health. There is no commitment to universal PDS or any rights to the poorest like right to education, work or food that ensures the bare minimum of democracy. It is silent on the demand of the Left parties & all the trade unions that the minimum salary of all workers have to be Rs.15,000/- monthly with benefits of pension & medical insurance. The pride in the cream of the society particularly the rich expatriate class which registered itself as a borough pocket of the ‘Right’ dwarfs the need of the poor majority, 77% of India, who live on less than Rs.20/- a day & the hugely weakened middle-class. It is clear that this government will remain on the side of the rich as the Congress led governments. Jobs with dignity for the vast majority of Indians will remain a mirage.
Posted on: Mon, 09 Jun 2014 07:50:29 +0000