Govt hurries to find funds for Mamata

Discussion in 'Politics & Society' started by parijataka, May 6, 2012.

  1. parijataka

    parijataka Senior Member Senior Member

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    Govt hurries to find funds for Mamata

    NEW DELHI: Faced with stark hint from Trinamool boss Mamata Banerjee that she might act independently of UPA in the presidential poll if her demand for financial relief for West Bengal was not conceded in a "few days", the Centre has scrambled to find ways to organize assistance for debt-stricken state.

    Officials handling the task now say they can rush relief to Bengal without having to seek a clearance from the Finance Commission. This is a significant shuffle from the earlier stand that the Centre was constrained by the requirement to refer the issue to the Commission that deals with government finances. "There is no such requirement," said a senior functionary in the finance ministry conversant with the subject.

    The official pointed out that the impression that an endorsement from the Finance Commission was a pre-requisite stemmed from the precedent, where the Centre consulted the body for providing help to Punjab in the 1990s on the ground of the depredation wrought by Khalistan insurgency.

    But while the finding can help Congress appease Banerjee's demand for a fresh Bengal package, it has left the ministry worrying about the cascading impact of the political gesture. To begin with, assistance to Bengal because of "debt stress" has to be extended to Kerala and Punjab as well that are almost equally distressed. Kerala CM Oomen Chandy has already made a formal demand, and the concession to Bengal can give fillip to similar stridency from these two states.

    Worse, it can encourage Uttar Pradesh and Bihar, both with anemic fisc, to knock at the Centre's door for aid. Bihar has been clamouring for "special state" status since Jharkhand was carved out of it a decade ago. UP's exchequer is severely strained, and CM Akhilesh Singh Yadav can hope to push through populist promises with a little help from the Centre.

    In fact, the 13th Finance Commission had pointed out that along with Rajasthan and Bengal, these two states were the only ones with debt levels of more than 40% of their gross state domestic product (GSDP). While the report was presented in 2009, none of the non-special category states budgeted for debt levels in excess of 40% in 2011-12.

    UP's argument may be even stronger given that it was among the five states, including Goa, Bengal, Kerala and Punjab, with fiscal deficit of over 3% of GSDP.

    Significantly, Congress views SP as a potential ally, while all indications suggest that Bihar CM Nitish Kumar is steadily drifting away from the BJP-led NDA.

    Political management will be at the cost of worsening fiscal condition. UPA's appetite for tough measures may diminish as the 2014 parliamentary contest approaches, and because its managers may see sops as the best way to shore up the depleted political capital. The task of fiscal consolidation - being hammered at home and abroad - may have to wait indefinitely.
     
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  3. Iamanidiot

    Iamanidiot Elite Member Elite Member

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    Bengal is nothing but a tax burden on the Indian exchequer.Unemployed and unemployable
     
  4. parijataka

    parijataka Senior Member Senior Member

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    Hmmm... that was mean and OT.

    Nyways, this incident lead to the question should states that have made a mess of governance and/or uncontrolled population growth be subsidised by states that have their finances in order, relatively lesser corruption and better governance.
     
  5. pmaitra

    pmaitra Moderator Moderator

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    The answer is negative. The centre should not succumb to this blackmail.

    OTOH, Mamata is generating revenue, by hook or by crook.
     
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  6. Yusuf

    Yusuf GUARDIAN Administrator

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    The government should give WB the money on only one condition. Reform and scrap the stupid policies of old. Ask the government of WB to show how it will generate revenue to pay off the debt.

    Something as basic as transportation is a joke in Kolkata where you can get from one end of the city to another in about 3-4 rupees. They have to come out of the commie "Cholbe na" mindset and kick start reforms there. Only then should WB get any more money. Otherwise any money they get will go down the drain and nothing will come out of it except another round of demand for more money.
     
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  7. parijataka

    parijataka Senior Member Senior Member

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    Didi is indulging in blackmail, pure and simple. She does not seem to be interested in revenue generation [as indicated by her opposition to Railway budget] or belt tightening [as she goes on to announce freebies at state expense]. Solution is as suggested by YB - offer financial package subject to stringent conditions.
     
  8. Mr.Ryu

    Mr.Ryu Regular Member

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    Mamata has become greatest open smuggler of modern India also greatest enemy of free speech after coming to power. Height of intolerance and arrogance at same place.

    Hope they throw her out next time.
     
  9. Oracle

    Oracle New Member

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    Another example of a state holding the Center to ransom.

    Yusuf, nothing will come out of Bengal with leaders such as Mamata or Buddhadeb. And people too care less. This blackmailing is ingrained in our minds. Regionalistic politics.
     
  10. SHURIDH

    SHURIDH Senior Member Senior Member

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    i hope he does not use those money in upcoming panchayet election.
     
  11. pmaitra

    pmaitra Moderator Moderator

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    I don't think Buddhadeb in any way qualifies for such accusations. He is one person who sincerely tried to generate jobs and revenue by inviting industries, unlike blackmailing the centre.
     
  12. pmaitra

    pmaitra Moderator Moderator

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    She has been accused of taking money from Rahul Bajaj for scuttling the Nano Project and that money, allegedly, went to her party funds.

    There is no proof - only speculation.
     
  13. Ray

    Ray The Chairman Defence Professionals Moderator

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    Presidential elections are in the offing.

    It is important to have one's own man in the Chair so that he/she can tilt the balance if it is a photo finish in the next General Elections!
     
  14. SHURIDH

    SHURIDH Senior Member Senior Member

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    yea there is no proof.mamta has honest image in personal level.but mamta wants to ensure tmc dominance everywhere after achiving dominance in lokshaba,rajya shaba sits of wb and bidhan shava.she now wants dominance in civic bodies,district council and panchayet thats why i say she
    may use those money in election.
     
  15. SHURIDH

    SHURIDH Senior Member Senior Member

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    ray da what can president do when results are close.actually i don't know about it.can you pleas tell me.
     
  16. Ray

    Ray The Chairman Defence Professionals Moderator

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    Partisan interpretation of the Constitution!

    Unlike when Kalam was the President!

    Saw how Ansari sabotaged the Lok Pal Bill claiming that midnight was the witching hour?

    And he was the Chairman of the Rajya Sabha and his interpretation was final!
     
    Last edited: May 7, 2012
  17. Ray

    Ray The Chairman Defence Professionals Moderator

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    I find that Mamata is in the league of MF Hussein with her 'paintings'.

    She fetches BIG money with her scrawls which my grandson could do better!

    But honest she is! :)

    Honesty with a slight nudge and much chicanery.l
     
  18. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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  19. Yusuf

    Yusuf GUARDIAN Administrator

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  20. Iamanidiot

    Iamanidiot Elite Member Elite Member

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    The US interacting with a politically volatile and powder keg state like west bengal makes me uncomfortable
     
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  21. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    Utter failure of UPA to allow Hillary convince Mamata over India-BD Water projects & benefits of open economy.
     

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