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Pranab Mukherjees Austerity Measures: No Minister Likes Cost Cutting

A few days ago, Finance minister Pranab Mukherjee had announced a bunch of rules for his minsters to cut down cost and avoid wasteful expenditure of the country tax payer money. I really was very happy with this, at least there is someone thinking right! But, the Minsters who are so used to living in the comforts of 5-star hotels (sometimes for months) and flying first class, and entertaining many other lavish habits did not like it! Of course, why would anyone who is so used to living such an extravagant life, free of cost, like this perquisite yanked away from them? “Just because the Finance Minister says we must cut costs? Is that his personal money? Why is he bothered?” This is absolutely what the ministers must be thinking. Although I am not sure what motive Mr. Mukherjee had when he announced the austerity measures, I think this is just a small step towards doing a lot more sensible things for the people of India.

Anyway, on Friday Mr. Mukherjee tried to downplay the controversy over the recently issued austerity measures. These austerity measures had kicked up a storm among his Cabinet colleagues.

“The austerity measures are not new and are part of the standing instructions of the finance ministry. But because of the high growth, the country has witnessed in the recent past, these guidelines were not being adhered to. I have only added points to them,” Mr. Muhkerjee said.

“I have suggested that in domestic flights, you should try to avoid (traveling executive class) because the distance is not far off. So far as international flights are concerned, they can travel executive class instead of first class,” he explained.

On the issue of press conferences and seminars in five-star hotels, the minister said there were excellent conference facilities available with the government in ministries and elsewhere and lunch could also be served. “But that does not mean lunch or dinners should not be held in hotels for visiting dignitaries,” he said.

Significantly, Mukherjee said while the measures are to be followed by government ministries and departments, he had no jurisdiction over Members of Parliament and non-Congress ministers. “I have only requested the Speaker of the Lok Sabha and the chairman of Rajya Sabha regarding certain measures,” he said.

Pointing out that the United Progressive Alliance (UPA) was a coalition government, Mukherjee further said, “It was only a recommendation by the Congress party to its members and other political parties have to take their own decisions, more so in a coalition.”

He, however, said he had recommended some economy measures for Parliament. “I suggested that we should try to conduct meetings of Parliamentary Committees in Delhi. This will not only cut transportation costs but also ensure higher attendance. Only three committees—committee on Public expenditure, Estimates committee and Committee on Public Undertakings are exempted,” he said. Many ministers including Mr. Anand Sharma, Mr. Kamal Nath, Mr. Sushil Kumar Shinde had opposed these measures.

In fact the other I heard from one of the news channels that Mr. Shashi Tharoor was staying in a 5-star for over a month. Although, he claims he was staying there his own expense. It would really take a dumb idiot to believe that. At a cost of minimum Rs. 5000 per day, that would make it just Rs. 1.5 Lakhs in 1 month – just on the accommodation, add to it expenses on food, communication (and taxes ) – I am sure at least Rs. 3-5 Lakhs would be spent easily – I am sure this is on the lower side. And this is just one incident, multiply by 100 per month – at least! That’s a whopping lot of money, that could easily be saved and spent on good cause.

So what does one make of all this drama? There is no hope, at least from these politicians, that they will be doing any significant good to the people of India, at least not to the larger population who do really need good governance to provide decent living standards. When over 70% of the country’s population barely manages to survive and have a decent living, our politicians are fighting for a right to stay in 5-star hotels, fly first class and who knows what else. All this, at the cost of the common man who pays taxes! This is daylight robbery, to say the least!

Even if someone tries to change the system, he is wrestled down to the ground by the other politicians.  We must at least make people aware of such bizarre behavior of our country’s politicians and think about step we can take to improve the system. Any thoughts?