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Firmness
pays Containing
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Finally,
Nepal has a PM
Expectations
from new Budget
A
welcoming ‘farewell’ to winter!
Even as the Union Law Ministry and the Election Commission have jointly started regional consultations, including one
in Chandigarh today, on much-needed electoral reforms, there is a need to strike a balance between secrecy of voting
and purity of elections — the two critical concepts representing two values to be observed in the poll process Regional
consultations: The way forward
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Containing prices
The
food inflation surge to 17.5 per cent in the week ended January 22 has revived concerns about economic growth. As rising inflation drives the RBI to tighten money supply, leading to higher interest rates, it raises the production cost for companies and slackens demand. Lower growth means lower taxes and lower spending on health, education and welfare schemes. This part of the inflation fallout was highlighted by the Prime Minister, Dr Manmohan Singh, in his address to the chief secretaries on Friday. He added a new dimension to the multi-pronged solution to inflation by suggesting the waiving of the mandi, octroi and other local taxes. Since this will hit the shaky state finances, the governments in states will not cut taxes to cool prices. The so-called farmer-friendly governments in Punjab and Haryana levy high taxes on farm produce brought to mandis. States do not ensure a smooth movement of essential items. The regular supply of food items is often disrupted or delayed by frequent road/rail blockages. Hoarders take full advantage of the situation and create artificial shortages. The states have, by and large, failed to act against the middlemen holding the consumer to ransom. In fact, barring a few, the states have shown little interest in controlling price rise as it is the Centre that largely faces public wrath. The Centre too cannot escape responsibility for bad food management. Apart from its failure to improve the food supply chain, encourage processing, marketing and scientific storage, the Centre has jacked up the import duty on some essential items. If the Centre lowers the import duty, the states may reciprocate the gesture and cut taxes, including those on oil. The imports of crude, pulses and edible oils can be better managed. The new minister in charge of civil supplies is yet to address issues like food supply bottlenecks and waste of food. There is a collective failure in revitalising agriculture and stimulating farm research to raise production and productivity.
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Finally, Nepal has a PM
The
changes recently introduced in the rules for the Prime Ministerial election in Nepal have led to expected results. The Himalayan nation, which has been without an elected government for over seven months, has finally got a leader to head the new consensus government that will now be formed. Mr Jhalanath Khanal of the CPN (UML) emerged victorious during Thursday’s voting by members of Nepal’s Parliament following the last minute withdrawal in his favour by the UCPN (Maoists) candidate, Mr Pushpa Kamal Dahal, alias Prachanda. This gesture by the Maoists seems to be the result of their realisation that the time for disruptive politics they had been playing so far was over. The amended rules provided only three attempts after which the election process would have got terminated, leading to a very complicated situation in new Nepal. Abstentions were also disallowed. The inbuilt roadblocks in the election process, which were removed on January 25 by a parliamentary committee constituted for the purpose, had come in the way of the electoral college having failed to elect a Prime Minister even in 16 rounds. In Thursday’s round, Mr Khanal got 368 votes while Mr Ramchandra Poudyal of the Nepali Congress polled 122 votes and the third candidate, Mr Bijaya Gachchadar of the Madhesi Janadhikar Forum, could win only 67 votes. Obviously, Mr Khanal has been successful because of the solid support he secured from the Maoists and some other members. His own party has only 108 members in the 601-seat Constituent Assembly. Mr Khanal has tough tasks ahead. He has to begin the process of nation-building by taking along all sections of public opinion to ensure that his government functions as smoothly as possible. Nepal’s economy has been passing through very difficult times after it got rid of monarchy. However, the most crucial item on the agenda of the Khanal government will be the constitution drafting process, which must be over by the extended deadline — May 28. Nepal’s Constituent Assembly has to be replaced by an Assembly that will be elected in accordance with the new constitution. The Nepalese peace process has come back on the rails, but it has still to cover a long distance to eliminate the threats to the democratic dispensation.
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The successful always has a number of projects planned, to which he looks forward. Anyone of them could change the course of his life overnight. — Mark Caine
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Expectations from new Budget In
the next Budget Finance Minister Pranab Mukherjee will have to strive hard to reduce fiscal deficit because a big fiscal deficit gives wrong signals to investors. The current year’s Central and state combined fiscal deficit stands at 8.5 per cent. If it is not shrunk it will ring alarm bells because several European Union (EU) members have witnessed a serious economic setback arising from big government debts last year. A wide fiscal deficit indicates unsustainable borrowing by the government, and because of the heavy interest payments involved on public debt, important items on the agenda for development get postponed. In any case, the background for the Budget is good — India is likely to keep growing between 8 and 9 per cent according to experts, but inflation will remain a worry. For inflation control, the RBI has acted again (for the seventh time since March 2010) but mildly. The short-term lending and borrowing rates or the repo rates have been hiked by 0.25 per cent (repo rate is the rate at which the RBI lends short-term money to banks and reverse repo is the rate at which banks park their short-term excess liquidity with the RBI). The repo rate changes would affect the banks’ interest rates and a small hike is better than a large hike as it would adversely impact the decisions of industry to invest and expand. Already industrial growth slowed down to 2.3 per cent in November 2010 (compared to 12.3 per cent a year ago) which is alarming. The RBI has also predicted that there could be a slowdown in GDP growth, taking into account a slower growth in agriculture. Clearly, food inflation, which was 15.5 per cent on January 8, is not likely to come down much because of the RBI’s move. It will come down only with a better supply of food items. General inflation is also up at 8.4 per cent and this is due to a rise in the prices of manufactured goods. Indian industry is facing a severe problem of a rise in all input prices which has led to price hikes for almost all products this year. Higher petrol prices would add to manufacturing costs and lead to higher fuel bills. As oil prices have gone up to $100 a barrel, there may be another petrol and cooking gas price hike in the near future. But the RBI has rightly emphasised that it is the quality of government expenditure and fiscal consolidation that will matter. For reducing expenditure, the first target may be the huge subsidy bill. The oil and food subsidies as a percentage of the total revenue expenditure take up 11.8 per cent. But these being politically sensitive, the government may tread cautiously — specially in dealing with subsidised food for the poor. Where the government can save money is in dismantling redundant schemes. The Budget will also have to create a better environment for job seekers by giving technical and vocational training to youth through better implementation of Central schemes like the Swarna Jayanti Shahari Rozgar Yojana and the Swarnajayanti Gram Swarozgar Yojana. MNREGA will be continued because it gave employment to 4.32 crore households in village India last year. Some of the many training schemes that are hardly used can be scrapped to save public money. There are many Central schemes for women and child development that are not functioning well. Many studies and news reports have revealed that there are big gaps in the women and child welfare schemes at the state level, and the urban poor are not benefiting from them. These have to be refurbished. It is shocking to hear that 56,000 children have died of malnutrition in urban Maharashtra in a year. Undernourished, anaemic women give birth to underweight children in slums who fall sick easily and die. The urban poor do not have easy access to clinics and are not able to give their children proper diet. Public health facilities should be enhanced and made accessible to the urban poor. Consolidating health programmes and getting them properly monitored and implemented would be important in the Budget. To combat food inflation, more public spending is required in agriculture. Agricultural growth has not reached its full potential in terms of productivity. Around 58 per cent of the labour force is engaged in agriculture and yet its contribution to the GDP is around 12.3 per cent. Small farmers need access to finance and extension work to be able to survive through droughts. Crop failures and poor prospects of being able to repay the moneylenders are leading to suicides, with 17,368 farmers losing their lives in 2009 alone. The development of tribal areas would be important because only with paid jobs and prospects of a better life can insurgencies be reduced. Small and micro-level units also need continued support and access to loans on easier terms. In the unorganised manufacturing sector, investment declined by 42 per cent in 2008-09 due to the lack of access to credit because of tight market conditions. Certain reforms are expected, especially in the opening of the multi-product retail sector. This being a delicate subject, as it involves the livelihood of millions of people in petty and small trading, will probably not be touched in the Budget, much to the disappointment of those who regard opening up the retail sector as important for attracting foreign investment. More than before, this year the Budget should also focus on clean and green economy. Environmentally friendly technology will have to be encouraged in order to reduce India’s carbon footprint. Alternate sources of energy will have to be funded further as India is likely to be most affected in the future due to climate change. Recycling of solid waste in construction and manufacturing industries will need encouragement. Eco-friendly technologies and procedures ought to be given incentives. In 2009-10, the government expenditure on adaptation to climate variability was around 2.6 per cent of the GDP. Keeping in mind the growing importance of the subject, more has to be spent. India needs a colossal amount of investment in infrastructure, specially in increasing the connectivity between remote villages and towns. Various incentives have to be given to engage the private sector in highway development. More expenditure will also be needed to bridge the gap between the electricity demand and its generation, estimated at 12 per cent. No doubt, the 3G spectrum has yielded a revenue bonanza but even so, the government will need more money for financing the much-needed development programmes. It is, however, important not to go in for populist measures that are mere vote catchers and provide opportunities for corruption and graft. Let us hope that at least fiscal consolidation can be
achieved.
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A welcoming ‘farewell’ to winter! THIS apparently harsh winter took quite a toll of my many a close acquaintance. No wonder this time a foolishly frightened me gave my routine morning walks a rather extended winter break. Thus almost all the known people that I confronted during my morning walk at the lake that I resumed the other day, welcomed me with a quizzing "no-see?" expression on their smiling faces. Apart from this the overall atmosphere at the lake, an interesting play of hide and seek between cuddly clouds and copper-disk like sun, a spirit elevating chirping of a variety of birds, a pleasingly cool breeze and an enchanting play of flute on the sound system installed there seemed to be offering me a wonderful welcome. All this made me regret on two clear counts; one, that I missed such a natural bounty continuously for a couple of months, two, that I unnecessarily added a couple of kilos to my otherwise quite-in-control paunch. Since I am a habitual bird watcher I enjoyed their amusing receptions the most. The sparkling white swarms of ducks fed by many regular enthusiasts for varied reasons than their well being were gaily fluttering as usual. A variety of migratory birds too were trying to intrude into their groups mischievously. Similarly, a lonely parrot sitting with a group of pigeons devouring a philanthropic feed was another interesting sight to devour. Not so strangely even the crows, unmindful of human presence to their close proximity, were adding to the overall environmental charm by their frisky 'hither and thither' playfulness, though in search of food. Despite the fact that I saw many a 'one-for-sorrow' mynah, considered to be lucky if seen more than one, I missed upon my most favourite 'neel kanth' (the kingfisher) that I consider as my lucky mascot for inexplicable reasons and that I would occasionally confront at the other end of the lake in general. However, while I was almost at the end of my walk and had reached the aged peepal tree I heard, with a pleasant surprise, a too well known sharp shriek from my best-loved blue-bodied bird that invited my attention towards a particular branch of the tree where it was perched rather complacently; and asking me perhaps the same question, "why no
see?”!
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Even as the Union Law Ministry and the Election Commission have jointly started regional consultations, including one
in Chandigarh today, on much-needed electoral reforms, there is a need to strike a balance between secrecy of voting
and purity of elections — the two critical concepts representing two values to be observed in the poll process
Reforming
election law has to be a process of continual change if it were to reflect the growing will of the vibrant democracy and its system of government. The perennial process of reforms envisages changes that can be divided broadly into two categories. One includes changes that we may call, operational reforms such as defects, deficiencies, disabilities, or deterrents, which come to light during the process of implementation of hitherto adopted and enacted norms.
Invariably, such pitfalls can be remedied with relative ease. This is primarily because herein the correctional course does not involve any change(s) in the policy perspective. The executive government or the Election Commission of India, therefore, can instantly sort out the problem through a little tinkering without requiring a reference to the legislature. The other encompasses reforms which are often advocated by all political bigwigs, relate to the realm of systemic failures. These require rectification in the basic framework for realigning the law and the legal system in the desired direction. The consequential reforms, therefore, cannot be carried out without parliamentary intervention. If the proposed reforms impinge upon the interests of persons who themselves are the instrumentalities of change, such a measure usually results in the ever continuing state of suspended animation! What should be done in this predicament? On the basis of our analysis of the Supreme Court decisions for 2009, published in December 2010 by the Indian Law Institute in its Annual Survey of Indian Law, we may abstract the following operational lapses that could be remedied instantly. Under the present provisions of the Election Symbols (Reservation and Allotment) Order, 1968, once a political party is de-recognised because of its dismal performance at elections, it loses the right to exclusive claim to ‘reserved symbol’. This is so despite the fact that the symbol has become completely merged, fused or identified with that party. Consequently, the Election Commission, instead of making available such a symbol as a ‘free symbol’, should freeze it and bar its use by any other person or political party in future.
Such a change, though seemingly slight or inconsequential, is essentially critical in avoiding the confusion in the minds of the illiterate voters who perceive the performance of political party on the basis of its symbol. Thus, for the masses, a symbol is not just symbolic but the manifestation of a party’s philosophy and its performance. The Returning Officers (ROs), as a statutory authority, exercise quasi-judicial powers while rejecting a nomination paper under the relevant provisions of the Representation of the People Act, 1951, read with the Conduct of Election Rules, 1961. However, cases that come for judicial adjudication reveal that the ROs, who are invariably senior civil servants, in spite of clear legislative principles and detailed statutory instructions, in their decision-making fail to comprehend and translate them into practice. This means they are required to be trained to appreciate, for instance, the functional purpose of the principle of presumption in favour of validity of nomination paper, the absence of which leads them to wrongly shift the burden of proof on the appellant rather than on the person who disputed the validity of nomination. Likewise, they need be educated about the functional ambit of summary inquiry by emphasising that examination of the merit of documents presented before him is not to be ignored. Secrecy of voting and purity of election are critical concepts representing two values to be observed in the election process. They are distinct from and yet integrally related to each other. Secrecy of ballot prevents all undue pressures from outside and thus ensures free and fair election. However, if the ploy of secrecy is used to suppress a wrong coming to light and to protect a fraud on the election process or even to defend a crime, then it makes it imperative to construe and confine the secrecy right in a manner that promotes free and fair election rather than subverting it.
This requires us to strike a balance between the two concepts. The Supreme Court has crystallised various principles showing how, in what manner, and to what extent a legitimate balance could be maintained between the two. As a part of the electoral reforms, the people need be informed and educated about these valuable concepts and their inter se relationship. Such a modest measure is bound to discourage frivolous litigation clogging our electoral system. As a result of judicial exposition of various statutory rules regulating the conduct of elections in concrete fact situations, various principles have become crystallised. Such principles, to use the language of the Supreme Court, are “fairly well-established” and hardly need any “restatement.” One, inspection of election papers should not be permitted as a matter of course. That would lead to making a roving enquiry for fishing out materials and derive undue support for one’s own case, which is simply impermissible as a matter of public policy. For permitting inspection, therefore, a clear case is required to be made out. However, despite this settled principle, the trial courts sometimes fail to observe these in practice. The Allahabad High Court in Fulena Singh v. Vijay Kumar Sinha and Ors. (2009) allowed the inspection of election papers “as a matter of course,” without assigning any reason in support of its conclusion. In view of the casual approach of the trial judge, the Supreme Court found it “very difficult to sustain such laconic and unreasoned order…” For fully comprehending the emerging principles of law, periodic meeting of the judges of trial courts, say, at the state or the National Judicial Academy, would be helpful. This, in turn, may provide the requisite fillip for improving our electoral system. Filing of frivolous election petitions needs to be discouraged. This could be done by burdening the petitioners with heavy costs in certain cases. In G.S. Iqbal v. K.M. Khadar and Ors. (2009), where the margin of votes between the returned candidate and the petitioner was unbridgeable (it was close to two lakh), noticing the desperate nature of submissions made by the petitioner, the apex court dismissed the appeal and imposed upon him Rs 25,000 towards costs. As an integral part of electoral reforms at the micro-level, dissemination of values inherent in the democratic system of government is important. The message must reach the electorates that in a democracy, their will is paramount. The election of the returned candidate, therefore, should not be interfered with unless there is a clear instance of flagrant violation of the norms that are meant to preserve the purity of election. This, indeed, is the message of the apex court in Baldev Singh Mann v. Surjit Singh Dhiman (2009). The writer is the Director (Academics),Chandigarh Judicial Academy, Chandigarh
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Regional consultations: The way forward The
Union Law Ministry and the Election Commission of India have started nation-wide consultations for making comprehensive reforms to electoral laws covering criminalisation of politics, funding of elections, auditing and financing of political parties, adjudication of election petitions, and review of the anti-defection law. The consultations, on the basis of a 42-page document prepared by the Ministry of Law and Justice, were held at Bhopal, Kolkata, Mumbai and Lucknow. Chandigarh will host a consultation on February 5. A national-level consultation will be held at New Delhi on April 2 and 3. According to Union Law Minister M. Veerappa Moily, “Amendments have been made before. But, they were all piecemeal responses to contingencies. But, a comprehensive reform is being attempted for the first time.” It is time to take stock of these consultations so that some midcourse corrections can be made to get the most out of the remaining ones. The first consultation was held in Bhopal on December 12, 2010. The proceedings turned out to be somewhat disappointing. Of the nine persons scheduled for “thematic discussions”, seven were bureaucrats (current and former IAS officers), and two were from the media. Even during open discussions, comments were taken mostly from the Collectors and other bureaucrats seated in the first few rows. Hardly any comments were taken from non-officials. Most of the time was spent on technical issues such as preparation of voter rolls, EVMs, etc and not on substantive issues such as criminalisation of politics, political party reforms (such as inner-party democracy, financial accountability). Though the anti-defection law was included in the agenda, there was no discussion because the designated speaker was unaware of his topic. The venue then shifted to the Vidhan Sabha where the discussion seemed confined to politicians. The most significant observation was the Madhya Pradesh Chief Minister saying that the Rajya Sabha should be abolished as seats there were being openly bought and sold. The feedback on the Bhopal meet was communicated to the Law Ministry and there seemed to have been an attempt at changing the process in the Kolkata meet. A plenary session in the forenoon was followed by three parallel sessions which also had nominated speakers with some time left for open discussions. The Kolkata consultation seemed to be a little more open than the Bhopal meet.
The next consultation was held in Mumbai on January 16. As in Kolkata, there was a plenary session in Mumbai with nominated speakers, followed by a very brief question-answer session and then three parallel sessions. These also had nominated speakers leaving hardly any time for non-nominated people to speak. All this happened before lunch and the consultation ended with a brief summing up after lunch. Some participants felt that the consultation seemed to be an event where the organisers were keen to have their own say or at best listen to only some selected invitees. Some of those who participated also felt that the ministry seemed to be going through the motions of holding consultations rather than seeking widespread opinions. One fact cited in support was the preponderance of the legal fraternity in the one held in Mumbai. The whole consultation process being considered to be an almost exclusively a legal exercise is also indicated by the composition of the nine-member “Core Commi-ttee” constituted by the Union Law Ministry “to work as a nodal committee for electoral reforms”. As a natural corollary to this composition, the Mumbai consultation was organised by Bombay University’s Department of Law. The Lucknow consultation was held on January 30. This turned out to be a “by invitation only” event. Some civil society members who have been working on electoral and political reforms were not allowed to enter the consultation premises on the ground that they did not have invitations or authorisation to enter. There was high, almost paranoid, level of security at the venue — the National Law University campus — and the preponderant attendees seemed to be law students and trainee judges. The consultations so far have been far from “public”. There is also practically no public information about the consultations. These seem to be events designed for politicians, bureaucrats, lawyers, and sundry invitees to listen to some selected “dignitaries”, and for some pre-chosen folks to express their opinions. Following the dictum about war and generals, it can be said that politics is too serious a business to be left only to politicians. It would, therefore, help if information about the remaining consultations is disseminated widely and these are made open events where anyone interested can participate and express their opinion. Only then will we get “nationwide” consultations that were promised on December 9, 2010, and an adequate sense of the changes needed in this area critical for our democracy. The writer is a former Dean and Director
In-charge, Indian Institute of Management, Ahmedabad
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