Has Moon landed on Earth?

Even while ‘dutifully’ hailing Jayalalitha for keeping her promises one after the other, the dailies have reported that the ADMK government is planning to increase revenue through various sources including ‘effective collection of commercial tax and TASMAC sales, major contribution to the State exchequer. According to sources, they reported, taxes during 2011-12 would be around Rs.50,000 crore and in 2012-13 the tax revenue is expected to touch about Rs.67,000 crore. The Revenue department had already sent its preliminary suggestions to increase state income which included extending the timings of liquor outlets by two hours to fetch additional income.

It is generally said that people’s memory is short; it is one of the duties of the media to refurbish the memory of the public. But the media in Tamil Nadu, itself feign selective amnesia – selective forgetness of Jayalalitha’s past record while projecting her as the saviour of the state! They pretend forgetting what all she did immediately after returning to power in 2001 – cancelling or withholding all the social welfare benefits extended to people by the previous DMK rule and even the monetary benefits enjoyed by the government employees, all anti-people measures under the pretext of financial crisis and fiscal prudence! Her mentality did not change even after the severe drubbing in 2004 Lok Sabha elections as a result of which she pooh-poohed the electoral promises of the DMK election manifesto for 2006 Assembly elections, and ridiculed it saying ‘They are promising moon’ that these promises were unrealizable and meant to hoodwink the people.’ What made her now to make over the change?

When Kalaignar unveiled DMK’s Election Manifesto for the 2006 Assembly elections many were apprehensive whether the promises were realizable. The political circles thought the manifesto was not seriously intended for follow-up actions after winning the polls, as the general practice till then was the election manifestos of political parties in democratic polity were meant for a day’s show by leaders and news for the media for one day, whereafter the political parties as well as the media forget them. But, for the first time in the electoral history of the country, possibly the world, DMK’s election manifesto was turned into the main plank of election campaign by the DMK and its allies that Union Minister Thiru P.Chidambaram called it as “the hero of the elections”.  Some commentators went to town attacking Kalaignar for alleged fiscal irresponsibility. ‘He was exceeding all limits’ alleged the ‘experts’. As it happened, however, the sceptics (like Jaya) and ‘experts’ were proved wrong.

The very first budget for the year 2006-07 that Prof. K.Anbazhagan presented to the Assembly on July 22, 2006, incorporated the schemes and provisions Kalaignar had unveiled in the manifesto, but the Budget estimates did not violate any of the limits laid down in the fiscal responsibility legislation. That was, indeed, remarkable and reflected the prudence that generally marks the actions of Kalaignar.

From then on there was no turning back and every budget presented thereafter contained not only allocations for implementation of the poll promises but also new announcements and new schemes with provisions thereof, adding to the Party’s motto of ‘we will do what we say; we will say what we did’ one more sentence ‘we will also do what we did not say and do them in time’, as it had turned out in the Interim Budget presented on Feb.4, 2011.

Kalaignar had clearly calibrated his promises to be in full accord with the State’s revenues. If the fiscal deficit in the budget for 2006-07 stood at 3 percent of the State’s GDP, it was brought down to just 2.54 percent in the interim budget estimates for 2011-12. Comparatively it was much lower than the figures of 3.28 percent in 2003-04, 4.36 percent in 2002-03 and 3.3 percent in 2001-02 under ADMK regime, when Jayalalitha withdrew all social welfare schemes and the monetary benefits of the government employees in the pretext of fiscal discipline to overcome fiscal crisis. These figures showed that there had been a conscious effort to contain the fiscal deficit in spite of increased commitments to expenditure on schemes and announcements in the manifesto and beyond. There had been full provision for all expenses associated with various schemes and nothing was left to be carried over to next fiscal. A substantial part of the fiscal deficit was still rightly directed to investments not giveaways.

On account of waiver of co-operative loans to farmers to the tune of Rs.7,000 cr. as promised in the manifesto, the budgets for the last five years showed that the government had taken over the entire debt liability owned by the co-operatives to NABARD and made good the loss caused to co-operative banks. There was also burden of reduction of interest from 9 percent to 5 percent and total waiver in case of prompt repayment. What was remarkable was that these costs had been absorbed in the revenue account without hurting the fiscal responsibility ceiling on revenue or fiscal deficit.

Kalaignar was far too experienced a statesman to set at risk the future of Tamil Nadu farmers, if he found the decision to write off the loans led to a fall in bank credit. The government’s approach was obviously designed to prevent the tragedies that various other states had witnessed in the form of farmers’ suicides due to their crushing debt burden. The answer obviously lies not only in reducing the burden of loan repayment but also enabling more remunerative prices to producers. To this end, procurement price of paddy which was Rs.570 per quintal for common variety and Rs.600 for fine variety was gradually increased to Rs.1,050 and Rs.1,100 respectively, and that of sugarcane from Rs.1,014 in 2005-06 to Rs.2,000. For solution to farmers’ problems one has to look out of box beyond write off loans. With this in mind the government had expanded Uzhavar Sandhai scheme.

The interim budget, presented last by the DMK rule, had allocated for food subsidy - Rs.4,000 cr. Kalaignar Housing Scheme - Rs.2,632 cr., Power subsidy – Rs.1,421 cr., Nutritious Meal programme – Rs.1,207 cr., Integrated Child Development scheme – Rs.991 cr., Kalaignar Health Insurance Scheme – Rs.765 cr., Chennai Metro Rail Project – Rs.754 cr., Maternity assistance and Marriage assistance schemes – Rs.697 cr., Hogenakkal Combined Drinking Water Supply scheme – Rs.400 cr. and MLA’s Local Area Development scheme – Rs.400 cr. All these costs had also been absorbed in the revenue account.

The budgets of the previous 5 years and the interim budget showed allocation for school education at Rs.39,405 cr. and Rs.12,674 cr. respectively, for higher education @ Rs.6,414 cr. and Rs.2,135 cr.; for public health @ 15,592 cr. and Rs.4,554 cr. – the costs invested in human resources development in farsight. So also for Rural Development it provided Rs.27,353 cr. in five years and Rs.8,812 cr. for 2011-12.

The budgets showed that the government spared no pains to make investments in various sectors met the plan objective. The investment outlays showed healthy increases. Business confidence was enhanced so that investment inflows complemented government investments in infrastructure development. As a result of progressive industrial policies followed by the government, ever since it assumed charge, many leading industries made investments worth Rs.52,195 cr. Manufacturing sector had grown at an average rate of 8.4 percent from 2007 to 2009 and 12 percent in 2010. As companies such as Dell, Nokia, Siemens and Moser Baer had commenced business in the state, it has become the leading state in the production of computers and electronic hardware in the country. Similarly, IT majors had invested heavily in software, with Tamil Nadu’s share at 11 percent in investment and production in IT sectors in India. The state had been proving itself as preferred destination of choice to investors both in manufacturing and knowledge industries.

How was all these possible, during DMK rule and not in the previous regime, particularly with no meaningful development and nil expenditure in social sector during the previous ADMK regime?  Kalaignar had no magic wand to bring financial resources, which Jayalalitha claimed was inadequate. By comparing the interim budgets for 2006-07 presented by the outgoing ADMK regime and the one for 2011-12 presented last, the secret is made obvious. The total revenue receipts estimate for 2006-07 presented by the ADMK government was Rs.30,251.53 cr. of which state’s own tax revenue estimate was Rs.20,650.83 cr., non-tax revenue - Rs.2,101.41 cr., share of Central taxes - Rs.4,672.66 cr. and grants-in-aid from Centre - Rs.2,828.83 cr. This was the position inherited by the DMK government and on completion of five-year tenure, Kalaignar rule left for 2011-12, total revenue receipts estimates at Rs.79,413 cr. (nearly 3 times more than in 2006) with state’s own tax revenue at Rs.53,783 cr. (nearly 3 times more than in 2006), non-tax revenue at Rs.4,811 cr., share in Central taxes at Rs.13,375 cr. and grants-in-aid  from the Centre at Rs.7,445 cr. This comparison shows not only the efficiency of the DMK government but also tax evasion in lieu of ‘consideration’ of the powers at the helm during ADMK regime.

The Interim Budget for 2011-12, as the earlier five budgets from 2006-07 was politically adroit socially compassionate and fiscally responsible and marked the successful journey to a bright and prosperous future for the state, if only the course is sustained in the years to come. 

By making Election Manifesto as the main plank of election campaign, right earnestly fulfilling all promises made to the electorate and going beyond them and accomplishing within the period of rule, Kalaignar had set a healthy precedence and brought about a metamorphosis in electoral ethics of Indian political system. The modus operandi is now being followed by all political parties in all states in the country. The outlook and expectations of the people/ electorate of the country have also undergone the positive change. Jayalalitha is no exception to the new order of electoral politics, envisioned and established by Kalaignar.

Unable to no more wish away her party’s election manifesto, nevertheless lacking originality and given her phobia of Kalaignar, Jayalalitha waited for Kalaignar to unveil DMK’s election manifesto, made a copy of it with more additional offers and released ADMK manifesto four days later in March. This fact was acknowledged even by Jayalalitha’s propaganda organ ‘Dinamani’ daily in its editorial.

The pro-ADMK dailies have hailed Jayalalitha stating that ‘keeping her promises within hours of assuming office, she ordered the implementation of many schemes including distribution of 20 kg of rice to ration cardholders, four gram of gold (for mangalsutra) and marriage assistance of Rs.50,000 for poor graduate girls, doubling of old-age pension and higher doles for fishermen during fishing ban period. It has been estimated that the welfare schemes announced by her would cost the exchequer Rs.2,000 crore (TOI, June 7).

For those who adored Jayalalitha for the announcements were in for the shock in the Governor’s Address to the Assembly on June 3. Even while announcing distribution of mixies, grinders and fans for 25 lakh families and free laptops to about 3 lakh students of Plus Two class, the vital schemes implemented by the DMK rule have been scrapped - Kalaignar Housing Scheme for free concrete houses to hut dwellers, Kalaignar Health Insurance Scheme and Chennai Metro Rail Project. The interim budget for 2011-12 presented by the DMK government in February last had made the following allocations for these cancelled schemes/ projects.

Kalaignar Housing Scheme – Rs.2,632 cr.

Kalaignar Health Insurance Scheme – Rs.765 cr.

Chennai Metro Rail Project – Rs.754 crore

Cancellation of these three together saves the new government Rs.4,151 crore, out of which the new announcements cost only Rs.2,000 crore. What is the great achievement to be lauded by the so-called enlightened English dailies which also knew well that the announcements of introducing revised schemes in lieu of the existing ones, is the modus operandi for abandoning the schemes. These dailies are also thrilled over simple ceremonies for Jayalalitha’s inauguration of schemes, ignoring huge expenditure in issuing full page government advertisements. Austerity is anathema for Jayalalitha and the ‘show’ will not last long.

But these dailies are conspicuous in covering up the abandoning of the New Secretariat Assembly complex constructed at a cost of over Rs.1,200 crore and giving up Samacheer Kalvi and wasting text books printed at a cost of over Rs.200 crore. Thus about Rs.1,400 crore public money drained to appease her ego. The media as a whole in TN, by turning a blind eye to such arrogant way of draining public money is doing a disservice to the people of Tamil Nadu.

The Governor’s Address which has evoked public resentment is just a prelude to the first Budget of the ADMK regime, for which people of the State should get energized enough to absorb the shocks! ‘Jai Ho’!