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The government's slew of sops on the eve of polls would not bring them the desired results

It is not Chrismas time nor is one expecting gifts from Santa Claus. But, its poll season and the government has decided to play Santa, in the hope that Indians behave in the upcoming polls, by showing pro-incumbency traits. In less than a year after it handed over the sixth pay commission bonanza to its employees, the Centre announced a six per cent dearness hike for them. It would put over Rs.50 billion burden on the state exchequer. But, then it hopes to swing in the votes of 50 lakh employees and about 40 lakh pensioners in its favour.

So what if the Rs.600 billion loan waiver for farmers announced in last year’s budget failed to serve the purpose; the Centre has announced a slew of measures for the agrarian community in the interim budget last month. With elections approaching fast, most ministers turned hyper-active. Most Union Ministers have been on an announcement, foundation-laying and inauguration spree. During the last one month, the government has announced projects worth several billions, with each ministry vying to take the lead and pushing full-page newspaper advertisements that highlight their achievements in office.


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Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).


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