KUSHAGR SHARMA
Raja Virbhadra Singh is 82 years old and a record five-time Chief Minister of Himachal Pradesh. While he pleaded with the public to help elect him for the last time during the 2013 election, the people are convinced he is not going anywhere. With his son not ready to take the mantle, Virbhadra singh knows he needs more time as Chief Minister. Instead of doing as he promised by leaving a bright future for his State, the Raja has decided to start spending like a bride preparing for her wedding. This spending has resulted in a growing deficit which is a big gamble with the future of the state.
The 2016 Budget of Himachal Pradesh currently has a deficit of Rs 3,000 crore. This is not an amount which has grown overnight but has continued to sky-rocket under the present Congress government. While some people may not pay attention to the budget, many economists will agree that a Rs 3 000 crore debt is not good for an economy like that of Himachal Pradesh. When the Government runs a budget deficit, it is spending more than it is taking in. This causes state savings to decrease. When State savings decrease, investment the primary store of state savings also decreases. Therefore, Himachal Pradesh is not a place where a budget deficit can be risked, as investment is necessary for the Government.
As per State Government statistics Himachal Pradesh currently has a literacy rate of 83 per cent for the entire population and close to 95 per cent for the younger generation. This is due to the excellent education in the State, commonly known as the ‘Himachal Model’. But education, which is the biggest strength of Himachal Pradesh, is starting to fail. Despite Virbhadra Singh continuing to increase the expenditure on education, it is still going downhill. The teacher-pupil ratio, which should which should be robust,is showing signs of strain. As a result, the public now prefers private schools as opposed to state schools. This has created competition which is good but has become too much. For example, the town of Ghumarwin, located in Bilaspur district, with a population of 7,000 has had close to 30 schools, both private and Government-managed.
Despite the high level of education, the job market in Himachal is horrendous. Himachal Pradesh has no jobs in the private sector. This means the people must rely on the Government for everything. According to the Economics & Statistics Department, the number of workers employed in the State is 5,60,435 and the number not employed is over 4,01,211. The employed numbers are not too bad but then again you must remember that these are all mostly Government jobs which have the lowest efficiency and thus do not help the economy in the long run.
Virbhadra Singh, being a veteran Congress member, believes in the flawed ideology of state socialism. State socialism has worked to a certain extent in Himachal as it has educated the people. However, he must remember that education does not put food in the stomach. What feeds the people are jobs which give them money to buy food. With Virbhadra’s socialism the people are going to remain poor since government jobs do not provide adequate money. Himachal Pradesh’s economy needs freedom, it need economic liberalisation. The Government needs to invest in creating infrastructure among others to woo industries and commerce into the Dev Bhoomi. It needs investment not reckless spending on behalf of the Government.
As stated before Virbhadra believes in state socialism. As a result, he has raised the daily wage (minimum) wage from Rs 180 – 200. He has enhanced the emoluments of Contract Employees by 50 percent of grade. While these moves may make the government look like it cares about the people and help Virbhadra pocket some votes. It puts the state in a deeper hole. Not only is the government spending more but it is disincentivizing workers and killing growth in the private sector. Low minimum (daily) wage attracts industries and commercial firms but the exact opposite is being done here. Further more the government spending Rs 55 Crores on repairing and building new government residential buildings. This again exemplifies the state-socialism agenda and government jobs are being incentivized. Virbhadra despite being CM for 5 times still believes in State-socialism as he refuses to help the private sector to grow. The Himachal economy is grasping for freedom which it so desperately deserves.
Instead of helping the people, Virbhadra Singh simply wants to build a legacy for himself. He can see the finish line but doesn’t like the image he sees in the mirror. So to fix that, he is spending more money than what the Government can afford in hopes of appeasing the population with useless policies.
The voters of Himachal Pradesh must make an informed decision in next Assembly electionThe people will have the chance to determine whether they want to suffocate the economy or let it free and prosper.
(The writer is a LLB Candidate at the University of Leicester)