One year hence- Promises and their delivery

With the NDA government completing a year in the office, there are various promises it set out to complete and faced numerous challenges in completing. Let us take a look at the view of its promises and the delivery of those promises.

1) Tackle price rise
Tamed. Sharp fall in crude oil prices led to a large part to the dip in prices but the government’s steps too tamed inflation and improved supplies. Special courts to stop hoarding/black marketing has been implemented. Setting up of Price Stabilization Fund is in the process. Government is yet to decide on unbundling of FCI ops.

2) Employment and Entrepreneurship: Develop labour-intensive manufacturing such as textile, footwear, electronics assembly and tourism
In process. Building blocks being put in pace, steps being planned for job creation. Plans being worked on strengthening traditional employment bases of agriculture and allied industries and retail.

3) Tackle corruption
Set up a system to eliminate scope of corruption through public awareness, e-governance, system-based policy, driven governance and simplification of processes. It has been successful in curbing corruption at the top.

4) Taxation reforms
Steps taken to end tax terrorism. But tax policy still remains a problem. Government has set up panels to examine knotty issues. But missteps in past months, particularly on the issue of MAT on capital gains of FIIs, have trigerred controversies. Notices to FIIs put on hod but controversy has hurt the wrok to shore up image of tax authorities. There has been progress in GST implementation. Lok Sabha has approved the bill and states’s concerns have been addressed.

5) Assess decision and policy paralysis
Steps taken to shore up decision-making. Beaureaucracy’s involvement has been intensified. PMO has emerged the centre-point for key decisions. PM routinely interacts with top secretaries.

6) Economic revival: To spur stable and balanced growth
There are signs of revival in growth. Economists and multilateral agencies such as IMF and World Bank have forecast 7-8% growth in the short term and predicted that India will overtake China. Weak spots remain in infrastructure, overall industrial growth. Reform measures should help ignite growth.

7) Strictly implement fiscal discipline without compromizing on funds availability for development and asset creation
Government has stated its commitment to fiscal discipline without compromising funds for development, but has relaxed target of reducing deficit to 3% of GDP by one year to ensure spending on infrastructure. More resources are being transferred to states due to 14th finance panel recommendations. Also a panel has been set up to strategize how to tackle subsidies.

8) Track down and bring back money stashed in foreign banks and offshore accounts
Law has been passed. Government introduced tough black money legislation. Set up an SIT to probe cases of black money. Both Lok Sabha and Rajya Sabha have approved the Bill.

9) Ensure conducive, enabling environment for doing business in India, set up world-class investment and industrial regions as global hubs for manufacturing, faster approvals
Mixed results. Government has unveiled measures to make it easier to do business in India but investment cycle is yet to pick up. Environmental clearances, other approvals have been fast-tracked but implementation of projects has been slow. Manufacturing needs a push to create jobs and get engines of growth roaring again.

10) Banking reforms and bad loans
Unveiled appointment norms for top state bank jobs. Jan Dhan Yojana launched successfully. Tackling bad loans has made limited progress; large defaulters use regulatory loopholes to delay resolution.

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