One of the fundamental rights conferred by our constitution to all citizens is the “right to work” for earning a decent living and good quality of life.
This can be ensured in a sustainable manner only when the state puts in place requisite policy framework conducive to promoting entrepreneurship, mechanisms for institutional funding of projects, builds infrastructure [roads, highways, ports, rails, irrigation etc] and sets up institutions for imparting education and skills etc all essential ingredients that help create opportunities for work.
For six-and-a-half decade since 1950 [the year when the constitution was adopted], these aspects received scant attention resulting in a grim scenario whereby creation of job opportunities are miniscule when compared to the needs. At present, there are over 10 million new job seekers every year but the absorption is not even one-tenth. And, the result is that a big chunk of the population [25-30%] lives below the poverty line and even those above are struggling all the time to get basic necessity such as shelter, education, healthcare, clothing etc.
A crucial question then arises is where exactly hundreds of thousands of crores spent by the Union and state governments every year are going. To gauge this, we only need to take note of the manifesto released by Ms J Jayalalithaa, AIADMK general secretary and Tamil Nadu chief minister on the eve of assembly elections in the state.
Jayalalithaa has promised free electricity up to 100 units a month to all households; free mobile phones and set-top boxes besides 50% subsidy for all women buying two-wheelers; providing one job for a person in a household; free internet connection to students in addition to free lap-tops; free Wi-Fi connections at all bus stands, commercial complexes, parks and other public places; adding nutritious breakfast to the mid-day meal [already in operation]; distributing “Amma Banking Card” to provide Rs 1000 interest free loan to poor women; Rs 500 gift coupons for ration card holders during Pongal festival to buy dresses at state-owned Co-optex outlets.
The freebies entailing financial commitments over a longer term, include construction of 1 million houses under the so called “green house scheme” for the poor; providing free houses to the downtrodden people living in rented accommodation; Rs 40,000 crores crop loan to farmers in next 5 years and creation of “Amma Collateral Guarantee Fund” with a corpus of Rs 100 crores to offer loans to small and medium start-ups.
Other states too are not behind in the race such as bi-cycles and laptops by Akhilesh Yadav in Uttar Pradesh [UP] or subsidized power for households [up to 400 units a month] in Delhi or free power to farmers in Punjab. These freebies guzzle resources of states on a gargantuan scale which result in corresponding reduction in availability of funds for development.
So much so, whenever a state faces natural disaster, it begs the center for financial assistance running in to thousands of crores [e.g. UP has sought Rs 11,000 crores to address current drought].
The trait of distributing doles is equally symptomatic of Union government. The National Food Security Act (NFSA) [enacted by then UPA – government in 2013] under which food is supplied to 67% of India’s population [75% rural & 50% urban] or 800 million at close to zero price entails a mammoth subsidy burden of Rs 140,000 crores [2015-16]. The proposal to give food to 25 million poorest among poor under Antyodaya Anna Yojna [AAY] free of cost will further increase the outgo.
Under MGNREGA [Mahatma Gandhi National Rural Employment Guarantee Act], the government spends tens of thousands of crores every year to give job to a member of a poor family for a minimum of 100 days in a year and pay wage @ Rs 100 per day. If, it is unable to offer work even then, wage has to be paid. This itself is a big incentive for not working and has even affected availability of labour for farming operations.
Political parties of all hues take to largess e as these are tantalizing vote catchers. These mesmerize recipients pushing them in to a world of illusion as they feel indebted to the giver and repay by casting their vote. Beyond that, these have no real value. A laptop or a mobile given to a poor person is trifle in relation to needs for running his family. What he really needs is a regular job or an enabling environment to set up his own business so that he has a regular income stream. But, no party has genuine interest in assuring him that. This is because if, it allows this to happen, people won’t need crutches [read subsidy] anymore and that in turn, will affect its vote bank.
Until such time, Modi appeared on the national scene promising a change of course via his sole focus on inclusive development, a vast majority of the people were virtually reconciled to this dispensation. A collateral damage was people imbibing a syndrome ‘when access to food and other necessities is free’, why work? No less damaging is the pernicious practice of siphoning-off funds which in a corruption ridden system of governance is possible much more easily in running welfare schemes such as MGNREGA, NFSA, mid-day meal etc. There is ample evidence of such things happening as pointed out in CAG [Comptroller and Auditor General] reports.
Both these maladies are pregnant with the possibility of jeopardizing development. While, misappropriation of funds from the schemes by corrupt bureaucrats and politicians reduce available resources, a vast section of the society addicted to doles with little inclination towards work make up for a weak foundation for growth.
Modi has succeeded in catapulting development to centre-stage. He has created several platforms viz., “Make in India”; “Stand-up India”; “Start-up India”; “Digital India” etc to give a fillip to all round growth. He has also taken credible steps to plug leakages in implementation of welfare schemes thereby saving precious resources.
However, a lot more efforts are needed especially at the political level to dismantle the cult of freebies/doles and replace it by a culture of productive work as that alone will enable sustainable increase in income and ensure a dignified living for the poor and downtrodden.