Breaking of promises by political parties ahead of elections...a danger to the economy

The only sustainable way to increase farmers' income is to increase agricultural productivity

Debt write-offs, higher than market prices of foodgrains, free foodgrains for the people, reservation in jobs for new castes, pension programs, a growing list of free and subsidized and cash transfers flash in every election now. Credit is also taken for development works like building physical infrastructure, toilets, electricity, internet communication. What economists call reforms that are market-oriented and involve fiscal discipline have never happened. Voters have learned to value what they are getting today instead of waiting for tomorrow, and they may choose the parties that offer the most generous offers. Governments are so distrusted that promises related to long-term development issues, such as improving school education or reforming the public health system, are often ignored. Political parties also do not provide any concrete and credible solutions to real problems like agriculture, unemployment and low income.

Consider the results of the caste survey in Bihar and see what results the promise of increasing reservation in employment? There are only 20 lakh government jobs in a state with a population of 13.1 crore. These jobs are also disproportionately held by the general category and to a lesser extent by the backward classes.

There would have been a corresponding reduction in jobs for the general category and backward classes. If the percentage of reservation increases then general category jobs will further decrease. About 1 million jobs will be affected due to caste-wise changes and higher reservation. Does anyone believe that this is a viable solution to the problem of caste or social justice in a province with a population of 13.1 crore, or will it solve the employment problem?

Considering the promise of high purchase price for farmers, especially wheat and rice prices which are much higher than the market price. On the one hand, it would encourage farmers to cultivate wheat and rice and sell their surplus produce to the government, which would naturally be the buyer. This means that both private business and crop diversity will suffer, while crop diversification is essential in view of increasing water stress.

On the other hand, the inefficient government procurement system (where the price paid to farmers is barely half of the total cost) will continue, leading to the accumulation of grain stocks that will only be distributed free. Ultimately, the price of grain distribution will remain the same, so the government subsidy will increase.

There is no mention of increasing agricultural productivity internationally, which is the only sustainable way to increase farmers' incomes. However, the promise of doubling farmers' income has been forgotten.

Finally let's talk about cash payments. It is generally accepted by all that there has been a significant reduction in pure poverty. However, this figure has increased slightly during Covid. However, a survey in Bihar shows that one-third of the population lives on an income of less than Rs 6,000 per month. This is a very small amount by any reasonable standard. Perhaps the information on income statistics has been reduced. This often happens in such surveys. People in most other states will be better off.

However, after 76 years of independence, there are many instances of providing supplementary income to the underprivileged. Like the Employment Guarantee Scheme, this too shows the failure of the Indian state to reform its citizens. Politicians can avoid the problem, they cannot solve it.