Business Economics & Services Team (BEST)
FM's Romance with Middle Class
When the General Budget is round the corner, the vested interests have their own way to influence the finance minister. With little support from media, their wish lists can be played up to any proportion. That is happening every year. This year also it has started well in advance. First because the two states are going for election from 25th November this year onwards and it will be completed only by third week of next month. The government cannot be held responsible for that. It is the election commission that takes the call on elections and its schedules. Secondly and more importantly, the Delhi State will go for election any time from now and many speculate that it can be February next year. In any case, most likely the event will take place before the presentation of the next Budget on 28th of February 2015.
The Finance Minister has to address three constituencies of the mammoth vote bank : the business , middle class and the salaried people. In an election year, for certain, it will be a populist budget. But this time around, election is taking place in certain isolated pockets. Barring Delhi, the rst of the two states -J&K and Jharkhand-are not electorally significant from the present government's perspective. Delhi is important because a failure can cause embarrassment to the ruling party since the party they are mainly pitted against -AAP- is a new political formation and has formed the ministry here and ruled for more than a month and abdicated the chair on its own, which in its own admission is a grand strategic mistake.
Here in the city of office goers, businessmen, middle men and shopkeepers, it is widely felt that AAP has made inroads into the vote bank of economically poorer classes, minorities and the groupings of such ilk because, there is a growing discontentment against the present government on account of still high prices, lack of civic amenities and the high talks when there is only very little to show in their progress card. Also,some of the ardent supporters of BJP among the government servants, tell in private that the stringent attendance rules and the perceived over play of a few from a particular state as informers and watch dogs. This has created a sense of discomfiture among them. That group has to be humored and brought to the fold
.Fiscal incentives and more civic amenities can offset some of their misgivings. Importantly, the Delhi government has put on hold the proposal to increase the power rates keeping elections in mind.
But the finance minister will be loosing the theme, if he tries to ignore the hardships of economically poor people, retired lots without pension and other vulnerable sections, because they are the hard hit lots. The statistics that have been rolled out to prove that the inflation is under check is not sending right signals to the common man. Even now, the onions, tomatoes, potatoes, vegetables etc are beyond the reach of the common man. Lat year, at this time, potatoes cost only Rs 10 per kg and in certain days and places it came down to the level of Rs 10 for two kgs. This year price for the ordinary variety did not come down below Rs 25 a kg in many markets at least in Delhi. So also the case or other vegetables. Common man does not believe in statistics, which can be interpreted in any way one likes. One can compare with the prices in the previous quarter if last year's price is not comparable or less etc.
At the end of the day, finance minister has to bear the responsibility for all these happenings. The decibel of blame and passing on the bucks will be more prominent if the election results go against the ruling party. The good part is that the like the previous FM, the incumbent is a lawyer and articulate. He can reason out and silence the critics. But the pertinent point is: how long?
FM's Romance with Middle Class
When the General Budget is round the corner, the vested interests have their own way to influence the finance minister. With little support from media, their wish lists can be played up to any proportion. That is happening every year. This year also it has started well in advance. First because the two states are going for election from 25th November this year onwards and it will be completed only by third week of next month. The government cannot be held responsible for that. It is the election commission that takes the call on elections and its schedules. Secondly and more importantly, the Delhi State will go for election any time from now and many speculate that it can be February next year. In any case, most likely the event will take place before the presentation of the next Budget on 28th of February 2015.
The Finance Minister has to address three constituencies of the mammoth vote bank : the business , middle class and the salaried people. In an election year, for certain, it will be a populist budget. But this time around, election is taking place in certain isolated pockets. Barring Delhi, the rst of the two states -J&K and Jharkhand-are not electorally significant from the present government's perspective. Delhi is important because a failure can cause embarrassment to the ruling party since the party they are mainly pitted against -AAP- is a new political formation and has formed the ministry here and ruled for more than a month and abdicated the chair on its own, which in its own admission is a grand strategic mistake.
Here in the city of office goers, businessmen, middle men and shopkeepers, it is widely felt that AAP has made inroads into the vote bank of economically poorer classes, minorities and the groupings of such ilk because, there is a growing discontentment against the present government on account of still high prices, lack of civic amenities and the high talks when there is only very little to show in their progress card. Also,some of the ardent supporters of BJP among the government servants, tell in private that the stringent attendance rules and the perceived over play of a few from a particular state as informers and watch dogs. This has created a sense of discomfiture among them. That group has to be humored and brought to the fold
.Fiscal incentives and more civic amenities can offset some of their misgivings. Importantly, the Delhi government has put on hold the proposal to increase the power rates keeping elections in mind.
But the finance minister will be loosing the theme, if he tries to ignore the hardships of economically poor people, retired lots without pension and other vulnerable sections, because they are the hard hit lots. The statistics that have been rolled out to prove that the inflation is under check is not sending right signals to the common man. Even now, the onions, tomatoes, potatoes, vegetables etc are beyond the reach of the common man. Lat year, at this time, potatoes cost only Rs 10 per kg and in certain days and places it came down to the level of Rs 10 for two kgs. This year price for the ordinary variety did not come down below Rs 25 a kg in many markets at least in Delhi. So also the case or other vegetables. Common man does not believe in statistics, which can be interpreted in any way one likes. One can compare with the prices in the previous quarter if last year's price is not comparable or less etc.
At the end of the day, finance minister has to bear the responsibility for all these happenings. The decibel of blame and passing on the bucks will be more prominent if the election results go against the ruling party. The good part is that the like the previous FM, the incumbent is a lawyer and articulate. He can reason out and silence the critics. But the pertinent point is: how long?
