Funding of legislators for corruption free Goa

Current political scenario: MLAs (includes ministers}, cherish their aspirations with fond hopes to contest subsequent terms. Obviously, it is no secret that they need to spend liberally on ‘goodies’ apart from keeping open liberal arm of donations to clubs associated with sports engaged in a variety of tournaments and competitions. Not to pay attention to medical and education fees of the needy or sponsor pilgrimage tours or bear rent for deep freezer casket of deceased, for house repairs would amount to sacrilege. The list is endless, since the core is good public relations for long time often through generations.

In addition, for meetings of VIP central leaders, they have to arrange for buses as per assignment, fill them with men and women as party workers draped with cap and scarf with party symbol, arrange food packets, water bottles, and adequately compensate for their loss of daily wages. For this they have to depend on sarpanch and panch, councilors of his constituency who thrive by granting licences and permits for illegal constructions and third-party contractors. Legislators bank heavily on this strata of voters as it constitutes his base with at least 20% votes which ensures his win or loss in elections inspite of his party support.

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MLA costs to State: For all above, an MLA has to spend on an average monthly Rs 5-7 lakh. An MLA gets in hand just around Rs 1 lack in cash from Government. (Rs 10,000 salary & Rs 90,000 as constituency allowance). He is allowed to have 5 staff at government cost. These are normally his close relatives which may include spouse and children, and forms part of his income. Apart from this, he gets motor car advance of Rs 15 lacs, housing advance of Rs 30 lakhs, 300 litres petrol/diesel per month. The cash amount is sufficient to meet his family other household expenses in absence of any other personal income as he is normally incapable of doing any serious business due to political interest. Matured seasoned MLAs do this gracefully without hurting giver, with quid pro quo of proportionate benefits. 

Seasoned ministers know how to hide money and do not worry about raids by IT department. They know how to participate in havala transactions unknown to ED or to keep money in tax haven and bring back during election time.

Myth of zero tolerance to corruption: Ruling MLAs are in a better position to raise funds as they are either ministers or chairmen of corporations. Opposition MLAs are in miserable position in absence of power, an inherent reason for their multiple trials to hop over to ruling party with fond hope of recovering their losses & loans for elections expenses.

“Zero Tolerance to Corruption” announcement by ministers make good headlines to make gullible public feel good. But in reality everyone knows that this is impossible irrespective of the party.  Money is life blood for a political party and politicians to survive. 

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Long term alternative solution: Time, energy and intelligence of our legislators is presently wasted in finding ways and means to raise money in illegal ways to survive. This can be utilised effectively to run their ministries and corporations in a competent manner which can earn them respect and dignity only if their financial needs are met officially and legally. Total amount required is around Rs 24 crores (Monthly Rs. 5 lakh x 12×40 MLAs).

One suggestion for funding that come is either to raise constituency allowance by additional Rs 5 lakh every month through budgetary provisions or by deducting at source a miniscule percentage (0.5%) as electoral cess by way of Cess Deducted at Source from works contract payments to raise Rs 50 crore by making appropriate legal provisions. Out of this 50% could be distributed to all 40 MLAs every month straight to their bank accounts with full freedom to spend the way they like i.e. giving freebies; carrying out development work in their constituencies or for personal use. Other 50% of cess should be given to all registered contesting political parties in proportion to their elected representatives. Just by forgoing 0.05% from their contract bills, contractors will save almost 20% of cut money and quality of work will improve.

There is risk of some MLAs still indulging in old habits. This can be significantly reduced if it is legally provided that such cases of corruption should be decided by fast-track court within 6 month and if found guilty he should be debarred/disentitle from his share of Rs 5 lakhs and holding public office. Public shaming also may acts as deterrent.

I have provided all this in some details to let you know how our legislators who decide our destiny are compelled to indulge in such practices against their wish to meet unavoidable expenses of their voters. Once they get taste of the money, it becomes insatiable and gets out of their hands.

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Comfortably sitting in “Balcao“, it is easy to brand all politicians as corrupt out to make fortune. Their life is full of struggles, disappointments, sacrifices, and uncertainties. Many ruin their family life and go into depression. Only very few gets to the top but still remain unhappy with rivalry for not getting ministry of their choice and at the same time face public ridicule.

The solution provided above could be tried for one term and if unsuccessful should be scrapped. Our State of Goa being a small State may try it out and if successful could be implemented all over the country.

(The author is a Chartered accountant by profession)

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