The Hindu Business Line : Austerity called for

The article "India and the Bush doctrine" (Business Line, October 11) points out that India 'will remain relevant and respected only if we translate the hope of an 8 per cent growth rate into reality'. Unveiling the Tenth Plan document, the Prime Minister, Mr Atal Bihari Vajpayee, declared that the barriers to growth have to go, and explained the steps to be taken for speedy development to achieve the target of growth.

The editorial "Planning in the air" (Business Line, October 8) explaining the constraints in this regard, stresses the need to attain the 8 per cent growth to pull vast sections from the morass of poverty that they are trapped in. And these problems need to be given priority.

To bridge the chasm between promise and performance requires funds, and implementation holds the key. The editorial "Finding funds" (Business Line, October 11) explains the difficulties in finding adequate or matching resources to achieve the target and suggests various steps that may be taken in this regard.

To avoid wasteful expenditure, the first step is "changing the mind-set" from top to bottom in the government as well as among the people. The success of the leadership lies in this. Lots of wasteful expenditure in use of vehicles, telephone, electricity, etc., could be saved. With every pay revision at the Central government level, or in PSUs and banks, the State governments are affected.

Pay revision by itself cannot be faulted. If higher pay could bring the desired results in industry, or efficiency in government working or discipline or better work culture, or increased productivity, half the problem could be solved. Industry and agriculture should work as complementary to each other for the benefit of both.

Grassroots- level organisations are to be encouraged for savings, investment and managing projects to avoid leakages. They are to be built up where they do not exist.

Loss-making PSUs are a big drain. Governments should get rid of them, evolving amicable settlements or arrangements. Privatisation of public undertakings need to be accelerated. At a time when the entire world is moving towards a common market, why cannot we do the same?

If necessary, the government should consider introducing a period of `economic discipline' for a few years, with the consensus of major political parties. We have to earn respect and dignity, both abroad and within the country.

A. Jacob Sahayam

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