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With the Union Cabinet approval for a 28-40 per cent hike in the basic pay of Central Government employees, based on the recommendations of the Sixth Pay Commission, government servants must concede they are well-paid. They should now stand up and deliver. The gains to be had from an efficient, even-handed administration cannot be overemphasised. However, notwithstanding the dismantling of the licence raj, rationalisation of taxes and tariffs and simplification of procedures for business, this is one area where reforms have not progressed. As the World Bank points out, it can take up to three months to start a business in India, against about a week in many parts of the developed world. The Bank ranks India at 120 in terms of ease of doing business, way below China (83). Reforms were supposed to usher in a transition from an administration that exercises discretionary power to one that implements a free, transparent set of rules for all economic agents. This has not really happened. While post-reform policies have invigorated the business climate, producers, investors and consumers still bear the brunt of information asymmetries. A transparent, efficient government is central to creating a level playing field.

A bureaucracy that performs will also induce fiscally responsible behaviour. Its inability to implement development and welfare programmes is perhaps a big reason why politicians dole out subsidies. In a climate of coalition politics and competitive populism, it is all the more important that the bureaucracy does its job. Higher pay alone will not ensure results, or curb corruption. Implementation of the Right to Information Act (RTI) will bring about some accountability. At present, there are no transparent standards for delivery of government services. Reports of audits carried out by the Comptroller and Auditor General and committees attached to Parliament are rarely acted upon. As the resistance to implementation of RTI has shown, officialdom is adept at protecting itself.

That said, the bureaucracy deserves a better working environment. Transfer is a weapon that politicians deploy at will against government officers. A minimum tenure of two years, whether in the districts or at the Centre or State capitals, will not only ensure that officers act without fear or favour but also enable them to acquire the necessary expertise in their jobs. The government stands the risk of losing its best people to the private sector if it does not give them the opportunity to rise to their potential. While restricting attractive voluntary retirement packages to unnecessary posts, the government should not fight shy of giving a golden handshake to the incompetent.

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