Exploring the Performance of India’s Finance Ministers Post-Independence
India has seen a series of finance ministers throughout its post-independence period, each with their own approach and outcomes. Among the many who have served in this crucial position, some have been criticized more than others. Nirmala Sitharaman, who served as Union Minister of Finance and Shipping, is a case in point. She has been subject to extensive scrutiny for her handling of the economy, especially regarding the implementation of Goods and Services Tax (GST).
Nirmala Sitharaman: A Tax Taker?
Nirmala Sitharaman, often referred to as a ‘tax taker,’ has garnered significant criticism for her policies. In a period marked by high unemployment and stagnant income growth, her tenure did little to alleviate the economic situation. The unemployment rate has barely moved, and most Indians struggle to secure stable, well-paying jobs. Moreover, the rise in inflation under her leadership has added immense pressure to the purchasing power of the middle and lower classes.
The GST Conundrum
The implementation of the Goods and Services Tax (GST) was intended to simplify the tax structure and boost the economy. However, the results have been far from ideal. Despite claims of benefiting the economy, evidence suggests that the burden of GST is disproportionately borne by the middle and lower-income groups. Reports indicate that these sections of the population bear the brunt of the tax increases. The imposition of GST on basic necessities such as stationery, ACs, and petrol has made these items more expensive, further complicating the lives of the already struggling masses.
Additionally, the government has seen a significant portion of the GST revenue coming from the middle and lower classes, who have fewer resources to absorb the additional cost. This has led to a situation where middle-class individuals are finding it increasingly difficult to save and consume, as their income is being increasingly consumed by taxes. The rise in tax rates has exacerbated the already challenging economic conditions, with experts questioning whether the GST has genuinely helped in fostering economic growth.
Others in the Limelight
The criticism of Nirmala Sitharaman is not an isolated incident. Throughout the years, multiple finance ministers have been criticized for their economic policies. It is disheartening to note that not a single finance minister has emerged as an expert in their field who possesses both the required knowledge and common sense to handle the nation's financial matters effectively.
For instance, Chidambaram Manmohan Singh, even though respected for his previous role in helping India’s financial policies, did not have a concrete idea about the budget allocation during his tenure. Similarly, Nehru’s time and earlier administrations also struggled with budgetary mismanagement and haphazard spending.
The current National Democratic Alliance (NDA) government, led by the Bharatiya Janata Party (BJP), has also been under scrutiny for its alleged failure in economic governance. The privatization drive, while championed by the BJP, has not equated to tangible benefits for the common man. Instead, it has often led to the exploitation of the masses without providing any semblance of social security or welfare.
The Need for Improvement
It is clear that the finance minister must be more than a rubber-stamp in the decision-making process. There must be a willingness to stand by one's decisions and accept the consequences if a policy fails to deliver. Moreover, transparency and accountability are paramount. The current government's reluctance to disclose detailed data, such as GST collection figures, is a worrying sign of a lack of trust in the system.
The BJP government has a lot to be humble about, especially when it comes to welfare measures. The Congress party had implemented the Mid-Day Meal Scheme, which was a boon for millions of children, while support for senior citizens through railway concessions was a hallmark of previous administrations. However, the current government seems to be more focused on populist measures without long-term planning and benefit.
The decision to increase the price of essential commodities like petrol, diesel, and gas has not only hurt the common man but also stunted economic growth. The renaming of Indira Gandhi FE (Institute) to Indira Gandhi FE is nothing short of a political statement rather than a step towards education or development. Additionally, the lack of a clear agenda for addressing challenges such as 2 crore opportunities annually for 15 lakh BPL families and the continued increase in GST despite international bodies reducing property taxes and controlling inflation is a cause for concern.
In conclusion, the performance of Nirmala Sitharaman as Finance Minister, like the previous finance ministers, has been marked by significant shortcomings. The need for a more competent, knowledgeable, and transparent finance minister cannot be overstated. It is high time the government adopts a more holistic and equitable approach to fiscal management.