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less government
Written By murali772 - 29 December, 2007
Economic Times has invited its readers to state what their dream for the state would be. My response was that I dream of a state with the babudom reduced to such an extent that half of Vidhan Soudha (and, of course, the entire Vikas Soudha) itself gets rented out.
Mr Benjamin Disraeli, a former British Prime Minister, had very correctly stated that "there can be economy where there is efficiency".
Even as the Karnataka government seems to have made up its mind on getting totally out of manufacturing activities, it is seen to be doing very little by way of reducing its own gargantuan size. As of today, the entire government work can be done far more efficiently and effectively by less than a tenth of the existing work force if it withdraws from areas it doesn't need to be in, and by going in for large-scale out-sourcing, retaining the services of a select few who can then be paid well.
In fact, the government would do well to target totally vacating the MS buildings, the Vikas Soudha, and even half the Vidhan Soudha itself, and in the process, generate revenue for itself by renting out these premises.
The employees rendered surplus can be given the Golden handshake or even a Platinum one. If they don’t accept it, daily attendance melas can be organised in four different corners of the city and salaries paid to them at the end of the month. As long as they are kept away from office, their potential for harm reduces considerably, and the state will be the overall gainer even with having to pay for no work done at all. With the loaves of office no longer available, they will eventually tire out and quit.
Though such a step can be viewed as harsh, it should be realised that every non-productive government job is today coming in the way of creation of atleast ten times as many jobs in the private sector in newer and newer areas. As such, nobody need shed tears for the government babu any more.
The politicians should realise that privatisation, outsourcing, etc are no longer dirty words in the minds of the public. On the contrary, they have gained considerable acceptance since they are clearly seen to improve efficiency, and are in fact becoming very populist concepts.
The slogan for the states now may as well be ‘privatise, outsource and prosper’.
Muralidhar Rao
COMMENTS
murali772 - 1 April, 2013 - 12:46
The Andhra Pradesh government spends 40 per cent of its revenue to pay salaries and wages to its staff. This does not include the outgo on pension and PF interest - - - The expenditure is way above the 35 per cent limit fixed by the 12th Finance Commission. A noteworthy finding is that the salary bill had doubled in just four years. The state has already appointed a new pay commission to keep the employees in good humour in this election year. Once its report is implemented, the salary bill will go up further.
Andhra Pradesh is not the only state where the government has virtually become “of the employees, by the employees and for the employees”, to paraphrase Abraham Lincoln’s famous definition of democracy. The situation in other states is not very different.
For the full text of the editorial in the New Indian Express, click here.
In addition is this kind of profligacy
murali772 - 27 February, 2014 - 11:43
Gujarat and West Bengal have raised the red flag on the setting up of the 7th Pay Commission, saying it would lead to unwanted financial stress which they cannot afford.
The two states, which are leading the charge in the coming Lok Sabha elections with their chief ministers as prime ministerial candidates, have told the Centre that the revision of salaries would increase the burden on states and this would be most inopportune in view of global economic slowdown and debt condition.
While Gujarat said the central pay panel's recommendations have encouraged "contract employment" which is not governed by government salary structures, Bengal said the pay panel must evolve a mechanism to provide financial assistance to states to meet costs of salary review - 100% assistance in Bengal's case.
The objection to the pay panel is hardly a populist move given that the Congress-led Centre decided to announce it ahead of Lok Sabha elections to woo the voters.
For the full report in the ToI, click here.
The two CMs who are opposing the setting up of yet another pay commission are the ones who are going to be around for some time to come, and have therefore appreciated the need for fiscal responsibility. The Congress, on the other hand, is desperate to clutch onto every straw available, damned be the economy.
Simultaneously, one hopes the need to reduce government size to its barest minimum is also beginning to dawn on the responsible CMs.
Responsible or Opposition Chief Ministers?
kbsyed61 - 27 February, 2014 - 22:12
Murali,
Don't jump onto this band wagon so soon and start giving certificates. The opposition from Mamta and Modi is very consistent with their opposition to central govt's moves in last few years. They have opposed each and every move that had the central govt mooted, be it VAT, GST, Police Reforms, Centralized Security Apparatus and the list goes on. There is nothing rational in their opposition except that they oppose the central govt ruled by UPA.
Only today, the PM candidate is saying he is OK with FDI in retail. His party had disrupted in parliament opposing FDI and even Yeshwant Sinha had threatened when his party comes to power they will over turn the FDI decision. Few days back their party in Rajasthan had reversed the FDI decision. Now he is OK with GST.
Only reason they had opposed GST was This - http://www.business-standard.com/article/beyond-business/has-held-up-gst-113020200073_1.html
We are better off, leaving the political band wagons where they are.
The substantive point in your argument is the one we need to discuss. You are absolutely right, it is time we need to move to a regime wherein the salaries are commensurate with performance and the inflation index. I am not sure how much you have followed the previous pay commissions. Only thing they do is to club the DA with the Salary. Politics then sets a date for the old timers gets some more money. The lucky ones are new comers or who joins after the pay revision.
Less govts not necessarily a prescription for good governance either. The true less govts are the dictatorship or the monarchy. I am sure you are not asking for such majoritinism? The PM candidate you have referred is one such example in his state of Gujarat.
CMs and responsible governance
murali772 - 2 March, 2014 - 13:40
@ Syedbhai - Yes, NaMo and Mamtadi have both commited enough wrongs in the past, and they have earned the wrath of the people each of those times too. But, that doesn't mean they can't correct themselves ever. From all indications, both seem to be putting the past behind, and moving forward a lot more responsibly now. The expressed worry over the extra unproductive burden that will befall their respective exchequers, resulting out of the pay commission recommendations, is but one indication of that.
Perhaps, a caption like "CMs becoming more responsible" would have been more acceptable to you - fair enough.
My purpose in generating a debate over it was to see if the talk will reach the powers that be in the state, and they too begin to relook at their current profligate ways, pandering to vote banks.
Also, while less government may not the only prescriptiion for good governance, it definitely is a necessary prescription. And, as for majoritarianism, socialism, et al, see here what none other than M J Akbar is saying.
murali772 - 19 October, 2012 - 07:54
There can and should be a debate about what the scope of the Indian state should be, but at a very minimum, most sensible people can agree that any state must be able to do at least four things: raise revenues, adjudicate disputes, uphold law and order, and provide public goods. Across these four crucial dimensions, the Indian state is woefully inadequate.
To read the full essay by Mr Milan Vaishnav in the Caravan magazine, click here.
This is apart from the government's key role as a facilitator, regulator, and where essential controller, of production of goods and provisioning of services, all of which are best left to the 'public', wrongly referred to as the 'private sector'.
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