Austerity is a word the government needs to add to its dictionary

To the Goa government, austerity measures and a cash crunch seem to mean nothing. It is as if the word just does not exist in their dictionary. In the past four years the ministers have spent over Rs 2 crore flying around the world, hosting parties, filling up the fuel tanks of their official vehicles and hosting various dignitaries in the State. Just months after coming to power at the Centre, Prime Minister Narendra Modi had announced a slew of austerity measures, including curbs on foreign travel and conferences. Goa was expected to fall in line. Apparently it did not. The party that began in March 2012 is still on four years later and will likely continue for the next few months until elections are called. 
For this government, one that has taken a U-turn on almost every assurance it has made, spending on air travel for its ministers from public funds does not appear to be too big an issue. The money is coming from the people. If travel abroad is necessary – and in some instances I may be – then the people should also be enlightened as to what have been the tangible results of those trips. Take for instance the delegation of ministers, officials, elected representatives of local bodies and media persons that went to Europe in November 2013 to study the garbage treatment systems in place there. Even three years later there has been no waste system plant that has been set up in Goa. Just what was achieved by that trip to various European countries? Is there anybody in the government who can answer this? The trip to Europe was nothing but wasteful expenditure that cannot be justified and this government has been indulging in that for far too long.
In January this year, the government had banned foreign trips, not entirely but just until the Budget. This had been done so as to inject more funds for development activities. That in itself is an admission by the government that the scarce financial resources as its disposal could have been better utilized productively for development works that would benefit the people but during the year were used to fund trips abroad for ministers and officials. But the austerity measures that were announced had a deadline of till the Budget. Now that the Budget has been presented and a vote on account taken, will the ban be lifted and ministers and government officers be free to travel around the world at the cost of the exchequer?
Though the government does not want to admit it, the State is facing a financial crisis today. The government even broke a practice that has been followed for years and avoided tabling the economic survey report in the Assembly before presenting the Budget. This is one document that would give a proper picture of the Goan economy. 
Debt has increased and there have been claims that every baby born in Goa has a debt of Rs 90,000 on his head. Austerity measures are one manner of curtailing expenditure and maintaining a healthy balance in the exchequer. The State, however, needs more that just austerity measures. It needs a fiscal and financial policy that will pump in money in the economy and have a positive effect on it. Increasing the amount of doles like those given through the Griha Adhaar Scheme and the Laadli Laxmi Scheme will not help the economy grow. What the economy needs is creation of employment that will lead to a rise in the demand and supply of goods and services. The government needs to spend on development projects and on promoting investment rather than on increasing the amounts on schemes. The latter may keep a few people happy, but does little to build the economy.

Share This Article