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By May 2005, the United Progressive Alliance (UPA) Government will be one year old in office. Supported by Left Parties, the constituent parties have adopted a National Common Minimum Programme (NCMP) to provide corruption-free, transparent and accountable governance. It also spelt out six principles of governance and seven priorities for policy.
Priorities
The principles and priorities are aimed at strengthening the welfare measures for the people besides boosting the country’s rapid globalization. The principles enshrined in the document include preserving, protecting and promoting social harmony, ensuring 7.8 per cent annual economic growth, enhancing welfare of farmers, farm labour and workers, political, educational and economic empowerment of women and provide for full equality of opportunity in education and employment for Scheduled Castes, Scheduled Tribes, Other Backward Classes and religious minorities. The Prime Minister, Dr Manmohan Singh, in his Independence Day speech, described the seven priorities of agriculture, infrastructure, employment, education, health care, water and urban renewal as the pillars of the development bridge. “We must cross this bridge to ensure higher economic growth and more equitable social and economic development,” Dr Singh underlined.
The UPA government’s most important contribution to the Nation has been the return of the polity to mainstream and economic growth with equity and social justice. During the last ten months, several initiatives were taken to provide social security net for the distressed people. It is also striving relentlessly to fulfill one of its key commitments – to increase employment opportunities. The National Employment Guarantee Bill providing for at least 100 days of employment to at least one person in every poor household in at least 150 of the most backward districts to begin with, is one among them. Launching a National Food for work Programme covering 15- backward districts and issuing Antyodaya Cards to 50 lakh additional families taking the total to two crore families, are some of the initiatives undertaken by the government.
Accelerating Economic Growth
Prompt and coordinated actions in the reduction of import duties and a slight monetary tightening by the RBI, have yielded very positive results. Inflationary expectations have been successfully altered over the second half of the last year. The government has entered the year 2005 with the economy geared to relatively modest inflationary expectations, while at the same time experiencing accelerated growth. Overall, all the macro-economic indicators are robust and positive and there is an air of optimism in the economy and the markets. The government is committed to pursue policies that will sustain the recovery and accelerate growth, moving forward on the twin roads of efficiency and equity, while maintaining a high degree of fiscal and financial discipline.
The introduction of Value-added Taxation (VAT) by states and the on-going investment in road, rail, air, telecom and broadband connectivity will further help reduce internal transaction costs in trade and commerce. A National Tax Tribunal is being set up to ensure uniformity in administration of tax laws and harmonize various tax laws to reduce incidence of tax-related disputes in the courts. Efforts are on to create a unified internal market by persuading States to appropriately amend Agricultural Produce Marketing Control Acts. The government took major initiatives for infrastructure development in Jammu and Kashmir and the Northeastern states. A Rs.24, 000 crore five year Development and Reconstruction Plan has been approved for Jammu and Kashmir with a strong focus on infrastructure development, especially power, roads, railways and telecommunications.
New Deal for Rural India
Under its commitment to give a “new deal for rural India,” it has reconstituted the National Commission on Farmers with eminent agricultural scientist Dr M S Swaminathan as its Chairperson. The UPA has committed increased credit availability to farmers, which will be doubled in the next three years, implementation of minimum wage laws for farm labour and favourable support prices for oilseeds, pulses and cotton. It has also constituted a National Committee on Rural Infrastructure for time-bound implementation of rural infrastructure projects. A new Marine Fishing Policy has been approved to protect interests of traditional and coastal fishermen against large commercial enterprises in deep-sea fishing. To protect the farmers against the vagaries of the monsoon, a weather insurance scheme titled Varsha Bima Yojana, has been introduced in four states on a pilot basis. The Rural Infrastructure Development Fund has been revived with a corpus of Rs.8, 000 crore in 2004-05. Several other initiatives in areas such as infrastructure development, health and education and fiscal policy that will benefit the farm economy, have been taken. The government proposes to undertake a major plan for rebuilding rural India called “Bharat Nirman.” This will be a time-bound business plan for building rural infrastructure in the areas of irrigation, roads, housing, water supply, and electrification and telecommunication connectivity. The policies are geared to usher in a new dawn for rural India, bringing millions of Indians into the process of development and empowerment.
Health Mission
Next to education, health is an important priority area. A National Rural Health Mission has been launched to improve access to health care for the weaker sections of rural society. The government has also launched a redesigned Universal Health Insurance Scheme for poor families, and a Group Health Insurance Scheme — Swasthya Bima Policy.
All the initiatives taken so far are in conformity with the assurance to the people that it would pursue policies that would boost economic growth and simultaneously address questions of equity and social justice. The government is committed to stepping up investment and employment generation in all sectors of the economy, including the manufacturing sector. It has also taken sectoral initiatives as in the case of sugar, jute, textiles and steel.
Education and Connectivity
Apart from the launch of EDUSAT, the national educational satellite, the launch of Direct to Home (DTH) television by Prasar Bharati will strengthen public broadcasting and thereby the base for the growing knowledge economy. The government has also come forward with a Broadband Policy-2004 with a view to provide impetus to broadband and Internet penetration in the country. A National E-Governance Action Plan (NEGAP) has been prepared to speed up e-enabling of public services. An important promise of the UPA government is to reform the government and public systems. There has also been a marked improvement in the country’s environment. The government has re-affirmed India’s commitment to maintaining a credible minimum nuclear deterrent with a policy of no-first use. As a result of the government’s efforts, the international environment for India’s development has been made more secure.
*Journalist
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