Beware! Your Performance is under watch
Posted : May 24, 2004 at 6:07 pm [IST]
Dr. Man Mohan Singh as well as newly formed UPA (United Progressive Alliance) are lucky and must be large hearted to admit one thing: The NDA (National Democratic Alliance) has handed over the charge when the country’s economy is in sound health. Foreign currency reserve is all time high at $118 billion dollars. The country has started pre-paying some of its external debts. It also announced a policy for not accepting aids from all and every so-called developed countries. India has also provided some aids to deserving poor countries of the world. It has enhanced the image of the country in eyes of the people. Our ratings are high. Inflation is pretty low at 3.8%. Exports have reached 60+ billion dollar last year. Leaving aside the IT, even auto components as well as auto exports have gone above 1 billion dollars.
Government banks are very much lean and competitive with private as well as foreign banks with improved efficiency and lesser NPA. The tele-density has multiplied. Even departments such as P&T have improved their efficiency. Cooking gases are easily available and so is a telephone connection. On many measurable parameters, the data is and will be available for the people to judge the performance of the new government vs. the previous one on facts and figures. As on 22.5.2004, the data on completion of roads by NHAI is available on their site. The site also provides the implementation plans with the expected dates of completion for each stretch in details. Same is true for the power projects-both thermal and hydroelectric ones, on which work is already underway for those where the financial closures have been reached. Initiative to harness 50,000 MW of hydel power by 2012 has already taken off with the Public Investment Board (PIB) giving the green signal to the Rs 2,496.9 crore Kameng project in Arunachal Pradesh. Many a project in Punjab, Utaranchal and Himachal are nearing completion. 1500MW Naptha Jhakri project of Sutlej Vidyut Nigam Limited is fully in operation. The people will exactly know how much of power generation and kms of roads the new government gets added by the completion of its tenure. So the new government must take up work in these two sectors of national importance with all integrity and efficiency. The two sectors will also be the backbone of agriculture and employment that the new government is talking so loudly as its major thrust areas. For providing water to the farmers and for reducing dependence on monsoon for the growth in agriculture sectors, some major irrigation projects must be taken up on war footing. CM of Andhra Pradesh has started well by committing for irrigation projects running in 26000 crores. But then the implementation of the project in a time frame of less than 5 years will be very important. Simultaneously, the work on the great river inter-linking projects must also start with all sincerity. The government may also decided to get started on some of the smaller projects - one with lesser controversies attached to them and with willing states. Getting a total consensus on the project will be very difficult because of vested interests. The new government must not show a lack of interest in these projects just because they were initiated by the previous government.
Almost all major companies had 2003-2004 as one of the best fiscal year improving both the top line as well as the bottom line. Many companies which were in red have gone black this year. Business Confidence index - a barometer of corporate mood monitored by the National Council of Applied research (NCAER) is at 142.8, an all time high. It shows a reflection of feel good factor. India Inc. never had it so good. Most of the corporate have shown robust growth. As per the data available from an association, the sales of 950 companies whose accounting year ended on March 31, 2004, grew by 19.18 per cent, while their net profits increased by a hefty 41.2 per cent. This sample of companies had posted sales growth of 12.96 per cent and a net profit growth of 24.37 per cent in the full year ended on March 2003. As data released by CII indicates, for a sample of 222 firms in the manufacturing sector, sales grew at 17.7% in 2003-04 while a net profit grew at 30.4%. As sign of improving economy, the total new investments, which are at different stages of implementation, have risen to Rs 15,90,057 crore in April 2004 compared with Rs 14,64,876 crore a year ago, according to the Centre for Monitoring Indian Economy (CMIE).The government must create situation where these growth rates get further increased.
Some of the well-known experts and economists have opined that India has become a power to reckon with. The new government must continue with the projects already started, rather speed that up to complete faster and give the maximum benefit out of those projects to the people as soon as possible.
Some of the unique bills- the Fiscal responsibility Act, the Competition Act, the Electricity Act, and the Securitisation Acts, were passed. Some more are pending. Every one knows about it. The new government must get them passed.
The new government is starting with a lot of advantages that it did not get when it came in power in 1991. The India shining for some must become India shining for all as promised by the new government. As professionals, many including yours truly will like to judge the performance of this government on month to month basis through a table such as one given below:
| Criteria | Position (May 2004) | Present Status | Performance +/-(target) |
|---|---|---|---|
| Inflation, % | 3.8 | 4 | |
| Interest rate, % | 6 | 5 | |
| BSE Sensex | 5200 | ||
| GDP growth, % | 8 | 10 | |
| Exports growth, % | 17.6 | 20 | |
| Forex Reserves, (in billion $) | 118 | 200 | |
| Subsidies, Rs. (in crore) | 44700 | 22500 | |
| Fiscal deficit, Rs. (in crore) | 1,32,100 | 3% | |
| Exchange Rate, Rs./$ | 45.96 | 22500 | |
| Average customs duty, % | 18 | 10 | |
| 4 & 6 laning completed, km | * | 4000/year | |
| Power generation capacity, MW | 10,000MW/year | ||
| Major irrigation canals, km | 1000km | ||
| Business Confidence Index | 142.8 |
(*Suddenly I find the site blank)
A number of other parameters- direct foreign investment, total investment/year, employment increase, etc. may be added in the table it to make it comprehensive. Actual status data must made available by the government half yearly. If not quarterly, for the information and benefits of all the citizens.
PS: We shall also expect and appeal to the present opposition some graceful behaviour in Lok Sabha. They must not boycott any cabinet minister and withhold the proceeding of the house to protest against any demand as was done in last Lok Sabha. Let them set a good new tradition at least for a change and for the benefit of the nation.
- Indra
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