The Hindu Business Line : A manifesto in waiting

BHANOJI RAO on a winning formula for adoption by an existing political party in search of a new identity or an up and coming political party interested in creating the big bang on the political scene.

Here is a ready-made manifesto, perhaps a winning formula, for adoption by an existing political party in search of a new identity or by an up and coming young political party interested in creating a big bang on the political scene. The term ‘Party’ in the article refers to the one adopting the manifesto.

Preamble

The Party stands for national development and integration with zero exclusions and excuses to ensure the betterment of the lives of people, across the board. The rest of this brief manifesto explains the principal objectives and strategies of the Party in key policy/sectoral areas.

Towards a caring, united and peaceful society: Unity and peace are to be achieved by creating the necessary conditions, by: minimising unemployment and underemployment; providing special assistance to those with low incomes; caring for those whose incapacities are too severe to enable them to earn a living via the usual channels; and ensuring visibility of equality in housing, health and education.

Unemployment and underemployment: There is no shortcut to ensuring full employment. There are millions ready to take up jobs, provided opportunities are available. The Party will launch the National Construction Service (NCS) for all those who wish to be engaged full-time or part-time in the Service. None will be denied a job as long as she or he registers to serve a minimum of six months. There is endless demand for new construction, renovation and maintenance in the public sector. As part of the NCS, there will be establishments to train workers. NCS offices and training establishments will be manned by retired army engineers.

Assistance to low-income people: The Party is not in favour of perpetuating the scourge of poverty politics. What has historically come to be known as the poverty line will be reviewed by a National Expert Group and a low-income level will be identified. A Low Income People Assistance Scheme (LIPAS) will be put in place based on a transparent and accountable non-transferable vouchers system. All the poverty programmes will be subsumed under LIPAS. Community-based supervision is integral to the Scheme.

Physically and mentally challenged: They are our people. Yet, they suffer insults and face terrible biases with regard to employment and livelihood. The physically challenged will receive education and training for jobs ranging from lift operators and car park attendants, to teachers and researchers. The Party will review all existing schemes and set out a unified scheme to ensure effective training and employment of the physically challenged. The mentally challenged will be cared for in National Homes, under local supervision and monitoring.

Visibility of equality in housing, health and education: The Party will formulate comprehensive policies and programmes in each of the three critical sectors. Following are some of the proposed initiatives.

In housing, the principal initiatives are aimed at homes for all and land conservation: Development of 1,000 cities from out of the existing small towns with each city comprising a number of townships; promotion of mid-rise housing in the townships with incentives such as assured non-stop water supply and excellent sanitation at subsidised costs; mandatory construction of one room flats within each township and each housing complex at the rate of one in ten for the exclusive sale at government-subsidised price to designated low-income families; severe space ceilings (no more than total land area of 100 sq. yd.) and other disincentives to virtually eliminate the construction of independent housing units; and the development of subsidised intra-city and inter-city mass transport networks along with taxation of personal car purchases.

The healthcare system will evolve around primary health centres transformed into world-class polyclinics, with excellent infrastructure and well-paid staff; government hospitals suitably upgraded to provide high quality service at relatively low rates; and private hospitals ensuring care for anyone and everyone on the basis of private, state-subsidised health insurance schemes.

In education, the Party’s aim is to ensure that each and every child receives high-quality school education of 12 years. Schools will be built and re-built on a war footing to be completed within five years, and these will be comparable in style and content to the best in the world. Teachers will be paid a salary attractive enough to join and stay on. Higher education in public and private sectors will be fully based on merit decided on in one common national test taken at the end of the 12th grade, with educational vouchers to assist students from recognised low-income families.

Economy

Agriculture: The broad contours of policy and programmes are defined by the twin facts that agriculture is the main stay of the economy, which has to supply food to the billion plus people and that farming is not anywhere near the comfort zone of those who enjoy industrial or service occupations. Those engaged in the production of rice, wheat, sugarcane, key pulses and grams will be assured a price that is indexed appropriately, in a way that will ensure that the farming community is not left behind in the growth of incomes. Industry and Services: State will leave production to the private sector, while playing an efficient regulatory role in both product and factor markets.

Governance: The central pillars in ensuring effective and efficient governance are the civil service and judiciary. The Party believes in the efficacy of relatively better selection procedures, competitive salaries, serious and deterring punishments for corruption.

Public finances: Personal and corporate income-taxes, VAT, Special Sales Tax (SST) and import duties are the only taxation components. Income-tax exemption limit will be pegged at Rs 4 lakh and will be automatically revised every two years on the basis of the changes in the consumer price index. Contributions to approved pension and provident funds and life and health insurance premiums will be fully exempt from taxation, up to 30 per cent of total income. No other exemptions will be allowed. The highest marginal tax rate will be 30 per cent and that will be the flat rate on corporate net income (income after allowable depreciation). In respect of corporate income, the only allowed exemptions are expenditure on Research and Development. If after 5 years of R&D, not a single patent is taken, the exemption will be lost, but can be reinstated for five years once a patent is taken.

VAT rate will be a uniform 10 per cent. Special Sales Tax (SST) will apply for designated commodities such as cars, tobacco and liquor, from time to time. Import duties will be at a flat rate of 10 per cent, except for tobacco, liquor and other designated products, which will attract higher rates.

Expenditure reform will be initiated in phases and shall have two prongs: Pruning wasteful and unproductive activities and reducing excessive manpower. The expected initiatives might include, for example, the ushering in of Development Advisory Councils at the central and state levels and the abolition of Rajya Sabha, Legislative Councils and the planning bodies at all levels.

Centre-State relations: The objective is to arrive at a truly federal structure within 10-15 years. There will be a planned withdrawal of the Central Government from all activities except national endeavours such as Defence, internal security, external affairs, RBI operations, and unified legislations. In line with this, all VAT and SST collections will be within state sphere and the revenue accrues directly to the states. Income tax and import duty revenue will be shared as per a formula that will be enshrined in the Constitution, doing away with the periodic Finance Commissions.

Electoral Reform : Each and every Indian citizen aged 18 and above will have a fully tamperproof national identity card, with a unique number. Voting will be compulsory, with suitable exceptions, and can be carried out at a polling booth electronically, or via Internet using a foolproof process.

Political parties will be barred from contesting a second election if they have not earned at least 10 per cent of total votes the first time. Independents are not allowed to contest. Candidates seeking election are free to hold public meetings, announcements about which could be put in print and electronic media. Rallies, banners, cut-outs and posters are not allowed. Door-to-door canvassing is not allowed. Election Commission will publish the details of all contesting candidates with full details of their background, assets, pending cases if any and other pertinent information on the Web site and in the print media, a few times before the election and definitely one day before the election. Candidates with known criminal record are not allowed to contest elections. Those above 70 years of age and those born abroad are not allowed to contest.

Gender Equality: The Party proposes a re-configuration of electoral constituencies into demographically equal entities and ensuring that half the elected representatives are women at Parliament and State Legislatures.

International Relations

International relations will be redefined with special emphasis on economic interests of the country and the people. The Foreign Service personnel will have clear and time-bound economic agenda.

Talk Less, Work More

The party leadership will be bound strictly by that philosophy. An official spokesperson does all the talking. Rest are workers and work must not allow them to waste time in cutting ribbons, laying foundation stones, in endless seminars and countless appearances in the media.

(The author, formerly with the National University of Singapore and the World Bank, is a visiting faculty, Sri Sathya Sai University, Prasanthi Nilayam. He can be reached at bhanoji@gmail.com)

More Stories on : Economy | Public Policy Note | Politics

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Erratic picture

Changing dynamics of the company board

A manifesto in waiting

Market Stabilisation Scheme and the Indian fisc

Liquidity management with eye on growth

Inflation rate