Narendra Modi finds a growth tonic in bitter pill
NEW DELHI: Prime Minister Narendra Modi has begun doling out the "bitter medicine" that he warned BJP workers in Goa earlier this week was coming.
The steep hike in railway fares indicates the general budget is likely to be shorn of sops and tax breaks that industry and individuals might have hoped for in a stressed economic climate.
The shrewd politician that he is, Modi is not likely to slash welfare schemes though he may well prioritize and refocus them.
But what will go out of fashion are doles like loan waivers or free power that Modi has slammed as unproductive, wasteful and in the long run politically ineffectual.
Armed with a solid BJP majority in Parliament and having emerged the undisputed leader in his party, the PM seems keen to administer the bitter medicine that he feels can be a growth tonic. Tough love, rather than soft beds, is his prescription.
In his Goa speech, Modi prepared BJP for decisions that would be painful in the short term but which he promised will be appreciated in time.
"I know my popularity might be dented due to these hard decisions, but they will appreciate it later," he told the party meet.
Modi's criticism that UPA has left the economy in dire straits and his invocation of the "no pain, no gain" mantra is seen as intended to tamp down expectations running high since BJP's big election win.
His comments are also aimed at setting a politically tough agenda of fiscal corrections at the beginning of his term in office itself, at a time when securing re-election to office is a distant task.
"Modi is not going to offer doles, he will promise growth that lifts all sections," said a senior BJP leader.
Finance minister Arun Jaitley previously spoke of "unpaid bills" left behind by the UPA and said fiscal indiscipline will prove costly and is not an option for the government.
Modi indicated his political time table during his reply to the debate on President Pranab Mukherjee's address to Parliament when he told the opposition that the pre-election year is adequate for politicking.
In weighing his options, the PM has decided not to be swayed by electoral considerations such as the approaching polls in Maharashtra, Haryana and possibly Delhi.
Decisions such as not offering any increases in personal income tax exemption or excise duty breaks will be a gamble, but Modi is counting on more than just luck to rough it out.
Modi seems to be factoring in the continued public anger against Congress that is in power in Maharashtra and Haryana. He also hopes BJP's promise of good and responsible governance will strike a chord.
The PM's initiatives so far seem to promise a bold attempt at doing away with regulatory and procedural hurdles that are seen to shackle business and enterprise.
Measures to shorten project clearance and implementation time lines, improvement in the government's public interface and a sharp focus on schemes impacting vulnerable sections are expected to ensure politics and economics go hand in hand.
Narendra Modi finds a growth tonic in bitter pill - The Times of India
