Towards making a Corruption-Free Government
Major moves Initiated during One Year
The Narendra Modi Government has completed one year in office on May 26
this year and during this period, there have been enough moves by the NDA
Government to remove corruption from the administration. One of the 2014 Lok
Sabha election promises was to root out corruption and bring back black money
stashed abroad. Modi Government, in one year, certainly has not ended
these two major evils that have been afflicting Indian economy right from
independence, but the measures taken so far, have given enough confidence to
the people that the new Government is serious in rooting out corruption from
the administration..
There
are no short-cuts. But even skeptics cannot deny the fact that there are no 2G,
Commonwealth games or coal scams during the last one year and it goes to Modi’s
credit that his image is not tarnished unlike his predecessor Manmohan Singh,
who despite being personally honest, seems to have done very little to stop
mega scams running into lakhs of crores of rupees right under his nose. None
can dispute the fact that Prime Minister Narendra Modi has begun in right
earnest to make the system transparent as we have seen in recent coal auction
or the 2G spectrum auction which together fetched a little over Rs 3 lakh crore
to the exchequer, which would also be shared with states where the coal mines
are located. Modi may not have fulfilled his promise to put Rs 15 lakh in every
bank account holder by bringing back trillions of ill-gotten money stashed
abroad, but he has certainly ensured some beginning is made to ensure Swiss
authorities cooperation to get into the bottom of some of the black money
stashed abroad.
Corruption is deep-rooted in the country and various studies show that
at least $8 billion, inflation indexed, is siphoned off every year and one
estimate suggests that over $620 billion has been siphoned off since
independence due to ambiguity and loopholes in policies, which is a major
breeding ground. Transparency International has estimated that the black money
stashed abroad by Indians could be as high as $1.4 trillion including the ill
gotten money secured in major scams, which surface periodically like Bofors,
Jaguar and other defence deals besides mega scams like coal and 2G.
The money that is siphoned off in scams is no doubt large but the money
made in petty corruption is not smaller though they are not stashed abroad. The
money made through corruption starting from driving licence, MNREGS, PDS
system, subsidies, public procurement, bribing lower staff to push files, paying
money to taxmen for getting their returns scrutinized and securing genuine
refunds, real estate registration, bribing the cops for traffic and other
violations and so on hit hard the common man most and stunts economic
development. The parallel economy, which could be as much as 50 per cent of GDP
contributes greatly to inflation, delay in decision making and at times stalls
development activities because some vested groups are not able to make money.
Business guru C K Prahalad had estimated that India lost at least $50 billion
worth of investments annually because of corruption. This is because corruption
made investors change their mind in investing in the country. It is well
established that lower the corruption like in Singapore, higher and faster is
the economic development. India is not the only country which has high rate of
corruption, the problem is there in other emerging economies as well but the
type of corruption that exists in India afflicts day to day activity more and
perhaps drastically slows down bureaucratic decisions leading to huge time and
cost overruns in projects.
Corruption might not be the only factor but certainly a contributory
factor for the huge number of projects stalled in the country. At one point of
time during UPA-ll, as much as Rs 18 lakh crore worth of projects were stalled.
Lately, Modi government has ensured that these stalled projects started moving,
some of them held up because of corruption According to Coal and Power Minister
Piyush Goyal, the transparent coal e-auction, which has potential for Rs 3.35
lakh crore revenue going to coal bearing states, especially in eastern India,
will help greatly in reducing corruption. Modi has already decided to crackdown
on corruption and his office has directed all central department on time-bound
action within 60 days to enforce rule of law. Ministers have been asked to
sanction prosecution or order disciplinary action within 60 days against
officials found to have indulged in corruption or misconduct respectively,
after vigilance inquiry.
In
sectors and services where public interface is high or which impact the daily
affairs of the masses, the direction is that there should be zero-overhand of
licence or other application beyond a prescribed time period. These
instructions are fine. But the question how far these would be implemented by
the concerned agencies in right earnest. The new Government has to be really
strict to enforce its instructions. One of the reasons for policy paralysis
during the second half of UPA regime was because government officials did not
want to take any decision for fear of being accused or prosecuted at a later
date. So they used to keep on pushing files after seeking some clarifications.
This ensured that they are not accused of not working but at the same time
ensured no decision was taken. The PMO has also instructed officials to
identify and crack down on areas where middlemen were suspected to be
operating. In an open letter to the nation to mark the completion of one year
in office on May 26, Modi said his government has acted to tackle “unabated
corruption”. Uncompromising adherence to the principle of purity, in action as
well as intent only ensures corruption-free society.
More
time is needed to judge whether these have helped in reducing corruption. One
area where government should concentrate is bringing about systemic changes and
automation, which would help in minimizing corruption if not eliminate it. For
example computerisation and automation of railway ticketing has virtually
eliminated touts and reduced to a large extent corruption. But there are
several other areas in railways where corruption is rampant like contracts,
catering, procurement, scrap disposal and so on, which are not yet fully transparent.
Smart cards in metros have virtually eliminated ticketless travel. Likewise
digitalization, a pet subject of Modi, will minimize corruption in movement of
files, tenders and so on as it would introduce transparency.
The
root cause of corruption in this country is that too many people are chasing
too few things, so without progress and honesty among politicians and business
cutting across all parties, corruption will remain. Complicated laws too add to
the problem as it leads to discretionary powers with politicians and
bureaucracy, a breeding ground for corruption. Government should also attempt
cleaning up of laws including that of taxes, make government procurement
transparent and impart moral education to all so that in the long term, India
becomes somewhat like Singapore as far as corruption is concerned and day to
day life became easier. Modi Government has started the process with great
zeal, but it has to be sustained for getting long term benefits.
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