The Congress Working Committee meeting has perhaps been the biggest anti-climatic political meeting in a while. With big issues on the plate including the formation of Telangana, a Cabinet reshuffle and the potential elevation of Rahul Gandhi; the senior leaders of the party, instead chose to merely endorse the economic decisions taken by the government over a week ago.
None of the Congress leaders at the meeting voiced any opposition to the decisions, but listened to the Finance Minister P Chidambaram and Prime Minister Manmohan Singh give them an explanation on why they were needed and their importance.
According to the two leaders, the welfare schemes of the Congress would be in peril in the event that the economy’s growth failed to continue or stumbled on account of factors that are affecting the global economy.
The Finance Minister told us that if the economy is not stable then relief programmes for the poor will not be possible. He said that the value of the rupee should not fall further and investments should be encouraged”, Dwivedi told reporters outside the meeting.
The Prime Minister also emphasised the importance of the economic decisions in the light of its effect on public welfare schemes. With the government looking down the barrel when it comes to corruption, economic growth and public welfare schemes are perhaps the only straw the Congress has left to grab at ahead of the next election.
However, what the Finance Minister and Prime Minister did not speak about was if the economic bullishness and a stronger rupee would mean to one or more flagship public welfare schemes ahead of the next elections.
The rising rupee and economic bullishness are reflected almost daily in the headlines of most pink papers and equity markets that can’t stop getting enough of the optimism. Optimism, that could aid the disinvestment in government companies and in due course fund a flagship public welfare scheme that can be splashed in advertisements ahead of the next elections.
As was pointed out earlier, the economic decisions taken over the last fortnight by the Manmohan Singh government don’t really amount to the big bang reforms that need to be undertaken in order to put the nation’s fiscal health in order. Incremental changes that permit temporary optimism, they are much like the trailer of a film whose arrival isn’t certain.
Unfortunately a new big budget public welfare scheme may not be what the doctor has ordered for the economy. Perhaps improvements in the delivery of existing schemes would be a better pursuit than hoping to shore up the finances to make a final thrust before the elections.
None of the Congress leaders at the meeting voiced any opposition to the decisions, but listened to the Finance Minister P Chidambaram and Prime Minister Manmohan Singh give them an explanation on why they were needed and their importance.According to the two leaders, the welfare schemes of the Congress would be in peril in the event that the economy’s growth failed to continue or stumbled on account of factors that are affecting the global economy.
The Finance Minister told us that if the economy is not stable then relief programmes for the poor will not be possible. He said that the value of the rupee should not fall further and investments should be encouraged”, Dwivedi told reporters outside the meeting.
The Prime Minister also emphasised the importance of the economic decisions in the light of its effect on public welfare schemes. With the government looking down the barrel when it comes to corruption, economic growth and public welfare schemes are perhaps the only straw the Congress has left to grab at ahead of the next election.
However, what the Finance Minister and Prime Minister did not speak about was if the economic bullishness and a stronger rupee would mean to one or more flagship public welfare schemes ahead of the next elections.
The rising rupee and economic bullishness are reflected almost daily in the headlines of most pink papers and equity markets that can’t stop getting enough of the optimism. Optimism, that could aid the disinvestment in government companies and in due course fund a flagship public welfare scheme that can be splashed in advertisements ahead of the next elections.
As was pointed out earlier, the economic decisions taken over the last fortnight by the Manmohan Singh government don’t really amount to the big bang reforms that need to be undertaken in order to put the nation’s fiscal health in order. Incremental changes that permit temporary optimism, they are much like the trailer of a film whose arrival isn’t certain.
Unfortunately a new big budget public welfare scheme may not be what the doctor has ordered for the economy. Perhaps improvements in the delivery of existing schemes would be a better pursuit than hoping to shore up the finances to make a final thrust before the elections.
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