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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
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.
unsustainable non-performing liability
murali772 - 28 March, 2014 - 06:36
The Seventh Pay Commission has been asked to recommend the extent to which the salaries and benefits of more than 70 lakh Central Government employees and pensioners. - - - Going by the kind of ticking time bombs lobbed into the lap of the next finance minister, including a slowing economy, reduced revenue growth, soaring non-Plan expenditure, and a major — and permanent — diversion of central funds to states for implementation of most of the government’s welfare schemes, this might seem like small beer.
But nevertheless, given the scale and size of the potential outgo, there has been practically no noise over this. Which is quite astonishing, since the previous Pay Commission has so far cost the central government over Rs2 lakh crore, the Railways and additional Rs1 lakh crore and state governments, local governments and public sector undertakings probably more than this, thanks to me-too demands from their staff.
This is because, regardless of the colour of the political dispensation in power at the Centre, pay and perks of government employees — a significant vote bank by themselves — have been a taboo topic for political debate. If at all any noise is made, it is almost always in support of the demand for better pay and perks for government workers. It is no different this time around either.
- - - No political party has seriously taken up the issue of another key parameter, which anybody else who works for a living, including, ironically, politicians themselves, takes for granted — performance.
- - - The need for a ‘living wage’ — the guiding principle for the first Pay Commission — is long past. It is time government employees are asked the same tough question that all other working Joes get asked at appraisal time — what have you delivered?
For the full text of the column by R Srinivasan, in The Hindu BusinessLine, click here.
No wonder the babu's still are still the top catch in Indian marriage market (check this too). But, can the country afford this never ending spree?
With the Centre proposing to keep its control over the service tax component and fixing the threshold for GST filing at Rs. 20 lakh, the tax department employees of the states fear that reduced jurisdiction may mean reduction in jobs in states.
The association spokesperson D Gautam said, "Since 2013, without GST anywhere on the horizon, the Centre strengthened and restructured its tax cadre. At this rate, state tax employees may have no work and may lose jobs."
For the full text of the report in the NDTV news, click here.
If you ask me, this reduction in unproductive government work is going to be the biggest benefit for the country through this exercise. As such, more and more such exercises need to happen. For every unproductive worker retrenched (through golden, or even platinum hand-shake), there'll arise scope for employing ten times as many productive workers. Plainly, this is then the way to go.
Importance of "ease of doing business" index
murali772 - 7 March, 2017 - 06:26
Here 's the link to an excellent TED talk titled "A few ways to fix a government" by Ms Charity Wayua, a Kenyan cancer researcher, who used her skills to finding solutions for 'cancer' in the governmental systems in her country, and thereby improve the "ease of doing business" index substantially.
All of it as true for India, as for Kenya. The importance of creating the right climate for businesses to grow is not appreciated, either by the govt or even the people. We want govt to do everything for us - statism; but, the government just don't have the capacity, and can't build it either. And consequently, we stand at 130 in the overall ranking for ease of doing business, far below Kenya.
All of this in spite of the supposed emphasis placed by the Modi sarkar in this matter, but which appears more and more inclined towards statism now - check here.
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.
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