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Chidambaram Budget a clear indication of elections
2008-02-29 16:45:25 Source : Moneycontrol.com
Print Version
Ashutosh, Managing Editor of IBN7 - Chidambaram Budget is a clear indicator that elections are imminent. It is only a matter of speculation when the election dates are going to be announced. In all probabality the elections can happen any time between September to November. But its announcements could take place in May or June depending upon government's decision to go ahead with the nuclear deal and when Left withdraws support.
Budget underlines few things from election point of view. Congtress is in dire need of new vote banks and is trying to reclaim lost territory. Dalits and muslims had been Congress' backbone till 1989 and this has been a singular reason for the party's political domination since independence. But Muslim's disillusionment with the party due to Babri Masjid issue and emergence of Kanshiram in north India, particularly in UP, broke its back leading to party's complete wiping out from UP and Bihar, the two states which together send almost one third of MPs to Lok Sabha.
Congress knows if it has to come out of its dependence from regional parties and to form a government on its own at the centre then it is must to earn the confidence of its old friends ie muslims and Dalits. No wonder Chidambaram has tried to play symbolism with these two groups very aggressively. Budget has doubled the minorities outlay from Rs 500 cr to Rs 1000 crore. New 288 PSU bank branches to be opened in minorities dominated districts. Speady implementation of Sachar Committee will be on the top of the government's agenda. And to make it very specific and very obvious whom it is trying to lure, the budget clearly states that Madarsas will be modernised. This needs to be understood in the context of one of the biggest conference of muslims happening in last week under the banner of Deoband and Congress being openly criticised by ulemas for the treatment meted out to the muslim boys in the name of fighting terrorism.
Mayawati has been very aggressively persuing its Dalit agenda and she has the ambition of replacing Congress outside UP too So to counter BSP'S propoganda, through the budget Congress has tried to project itself as the champion of SC and ST and so the government announced special provision under NREG for employment, under Jawahar Navodaya Vidyalaya for education, special attention for health under National Rural Health Scheme. And all this is done under the garb of inclusive growth. But at the outset it means electoral growth for Congress.
But its master stroke has been complete waiver of loans for small and marginal farmers. As this will affect 4 crore farmers and the government has to dole out Rs 60,000 crore from its exchequer. Four crore meanns directly reaching out to a population of almost 16 crore plus voters assuming three dependence to one farmer (wife and two members of the family). Manmohan Singh governmnet was at the receiving end due to the farmers' suicide acroos the country specially in Vidarbh. Devi Lal, Prakash Singh Badal and N T Ramarao had played the same trick in the past by similar strokes. But will farmers react positively to Congress is something will be seen only during the election times. Government intentions are so clear and focussed that in the budget it has clarified that all the waiver will happen before 30th June. This clearly indicates that governmewnt is in hurry and wants to win over farmers before elections.
Manmohan Government has also tried to break the myth that only BJP cares for urban middle class. At the moment Indian middle class is growing at a fast pace and its aspirations are very high. It is earning good money, wants to have descent house and good salary but at the same time it also wants to pay less in terms of taxes. Raising Income tax limit to Rs 1.5 lakh means saving of Rs 44000 a year gives a psychological high to urban middle class, and through this Chidambaram wants to have a direct connect with a large section of a very vocal population.
Election savvy government has also done one thing very cleverly. Despite Manmohan and Chidambaram, darlings of industry, did not give a hint that government wants to woo big business houses or only caters to industry unlike Vajpayee government who day - dreamed that urbanisation and industrial growth will get them good dividends in elections. It forgot that a sizeable section of indian population was born and brought up in anti - capitalist sentiments and whose socialist memories will take time to erase. So when Vajpayee government said india is shinning people did not believe him becuse with ideologically coloured eyes voters only saw india shinning only for big business houses. So on this front Manmohan Government has been politically very correct.
But There is a problem. Manmohan Government took four years to realise that elections will be held in the fifth year of their governance. And it has to contest elections. No wonder this budget gives an impression that congress, in cricketing term, is in 20 - 20 mode. It wants immediate success at a very fast pace. But elections are five day battle and to get favourable results one has to be patient and has to plan for long term.

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