To be efficacious, the Modi Government must implement Economic Reforms seriously
Satbir Singh Bedi | 30 Jun 2014

To be efficacious, the Modi Government must implement Economic Reforms seriously. As a first step in this direction, it should abolish all subsidies which are eating into the vitals of the nation's economy and are only benefiting the rich and middle class farmers.

It must do away with fertiliser subsidy, food subsidy, kerosene subsidy and in fact, subsidy of all kinds. Everybody must earn and pay for whatever product he wants. It must then abolish and dismantle all public sector undertakings which are only a white elephant on the public exchequer.

During the course of my 36 years in Government service, I have found that government servants and the servants of PSUs were very conscious of their rights but hardly conscious of their duties. Everybody thought that everybody else would do the work and the works, except the work related to the Parliamentary matters and other urgent works, remained pending.

The PSUs actually work as if they were of the government, for the government and by the government. They have palatial guest houses which were used by the ministers and government officers who came on tour ostensibly for Government work but actually for rest and recreation.

Their vehicles are also made to run for the ministers and the Govt. officers for visits to their places of interest so that they could tell their children and grandchildren which tourist places they have visited when they occupied those high offices. Needless to add that breakfast, lunches and dinners etc. were also arranged by the PSUs.

They also provided staff to the Central Government departments concerned for doing the work of the department.

Result was that the PSUs were soon getting into red and due to rationing, quota and licensing systems and the losses suffered by the PSUs, the economy of the country was ruined by the government of India.

By selling the PSUs, the Govt. of India could also reduce its staff dealing with PSUs and save expenditure. Department of Coal, Steel, Mines, Fertilisers, etc. could be abolished.

Then there should be no license permit quota Inspector Raj and let the Private sector compete with each other in the case of mining, etc. The Land Acquisition Law needs to done away with and let market forces guide the cost of the land to be purchased by industrialists.

All the subsidies should be withdrawn and everything should be guided by market forces.

If the Economic Reforms are truly implemented then the Government could go in for building rural infrastructure which is so necessary for implementing healthcare and education by investing the money got from the sale of PSUs and money saved on expenditure on Govt. staff dealing with PSUs which would no longer be required.